Additional fee on coffee beans export prices from Indonesia due to the new import regulation in Egypt

Indonesian coffee exporters add additional fees to the price for the coffee beans exports to Egypt as much as 0.25%-0.35% for each agreed transaction based on the agreed FOB price anticipating the new rules for import transactions in Egypt will be effective for all transactions from 1 March. On 12 February 2022, the Egyptian Central Bank has issued a regulation to stop all CAD (Cash against document) term transactions. Since then, all import transactions to the country have to use the LC (Letter of Credit) mechanism. As a result, there will be additional banking transaction costs from both sides. The Indonesian exporter then imposes this additional cost on their FOB pricing.