Sudan Faces Import Paralysis

The Sudanese Importers Chamber has stopped importing and paying taxes to the state. (Photo: Reuters)
The Sudanese Importers Chamber has stopped importing and paying taxes to the state. (Photo: Reuters)
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Sudan Faces Import Paralysis

The Sudanese Importers Chamber has stopped importing and paying taxes to the state. (Photo: Reuters)
The Sudanese Importers Chamber has stopped importing and paying taxes to the state. (Photo: Reuters)

The Sudanese Importers Chamber announced the suspension of imports and the non-payment of any customs or tax duties to the state, for a period of three days starting Sunday, in protest against the increase in the customs rate.

The decision constitutes a major shock to the government, which relies mainly on import and export customs revenues to run the state’s affairs in light of the stifling economic crisis in the country.

In a statement on Thursday, the Chamber said that the increase in the exchange rate of foreign currencies would augment customs duties by 30.8 percent, which will have dire effects on the living conditions in the country.

The Sudanese Importers Chamber called on all its employees to stop all imports, and to refrain from paying customs and tax fees and any other government fees for three days, until reaching an agreement with the concerned authorities.

In turn, the Sudanese Ministry of Finance denied in a statement, the adoption of any decision to increase the customs fees. The ministry’s official spokesman, Ahmed Al-Sharif Mohamed Abdel-Rahman, said that the price of the dollar varies according to the policy adopted by the country’s central bank.

A decision was announced in June, eliminating the customs exchange rate used to calculate import duties.

The move comes within a reform plan monitored by the International Monetary Fund to give debt relief and attract new financing.

Economic Expert Al-Fateh Mahjoub Othman told Asharq Al-Awsat that the decision to raise the price of the customs dollar to equal the exchange rate of the Sudanese pound in all government transactions removes one of the biggest hurdles to the Sudanese economy.

He added that the decision would help the government improve its public finances, and increase its spending ability in the first and second quarters without resorting to borrowing from the Bank of Sudan.



Oil Slips as Iran-Israel Conflict Enters Sixth Day

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Slips as Iran-Israel Conflict Enters Sixth Day

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices fell on Wednesday, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct US involvement.

Brent crude futures fell 93 cents, or 1.2%, to $75.52 a barrel by 0918 GMT. US West Texas Intermediate crude futures fell 88 cents, also 1.2%, to $73.96 per barrel.

US President Trump warned on social media on Tuesday that US patience was wearing thin, and called for an "unconditional surrender" from Iran.

While he said there was no intention to kill Iran's leader Ali Khamenei "for now," his comments suggested a tougher stance toward Iran as he weighs whether to deepen US involvement.

A source familiar with internal discussions said one of the options Trump and his team are considering included joining Israel on strikes against Iranian nuclear sites.

A direct US involvement threatens to widen the confrontation further, putting energy infrastructure in the region at higher risk of attack, analysts say.

"The biggest fear for the oil market is the shutdown of the Strait of Hormuz," ING analysts said in a note.

"Almost a third of global seaborne oil trade moves through this chokepoint. A significant disruption to these flows would be enough to push prices to $120 [a barrel]," the bank added.

Iran is OPEC's third-largest producer, extracting about 3.3 million barrels per day (bpd) of crude oil.

Meanwhile, Iranian ambassador to the United Nations in Geneva Ali Bahreini said on Wednesday that Tehran has conveyed to Washington that it will respond firmly to the United States if it becomes directly involved in Israel's military campaign.

Markets are also looking ahead to a second day of US Federal Reserve discussions on Wednesday, in which the central bank is expected to leave its benchmark overnight interest rate in the range of 4.25% to 4.50%.

However, the conflict in the Middle East and the risk of slowing global growth could potentially push the Fed to cut rates by 25 basis points in July, sooner than the market's current expectation of September, said Tony Sycamore, market analyst with IG.

Lower interest rates generally boost economic growth and demand for oil.

Confounding the decision for the Fed, however, is the Middle East conflict's potential creation of a new source of inflation via surging oil prices.

US crude stocks fell by 10.1 million barrels in the week ended June 13, market sources told Reuters, citing American Petroleum Institute figures on Tuesday. Official Energy Information Administration data is due later on Wednesday.