After the 15 million shekels controversy, the economy threatens meat merchants who violate the price by reducing prices

Hebron - Ofoq News - In light of mounting questions about the extent to which customs exemptions granted to importers of frozen meat reflect the prices paid by the Palestinian citizen, the Ministry of Economy claimed that it has new directions to impose price ceilings on imported meat within the “quota” trade quota system, and oblige importers to adhere to the prices set by the competent authorities, warning that violating companies will be deprived of obtaining future import quotas.

The Director General of Trade at the Ministry of National Economy, Jihad Shehadeh, confirmed that the Ministry is working to develop an integrated system to govern the distribution of import quotas and enhance market control, ensuring that goods reach the consumer at fair and acceptable prices, and preventing the use of government privileges from being limited to importers and traders.

Shehadeh’s statements came during an interview on the “Talat Sabah” program, presented by journalist Adel Gharib, and broadcast on Radio 4, Ma’an Satellite, and Ma’an Radio Network, where he discussed the mechanisms for distributing frozen meat import quotas, the size of customs exemptions, the approved criteria for selecting beneficiary companies, and the expected measures to ensure that these concessions are reflected in prices in the Palestinian markets.

15 million shekels in exemptions... Where does its impact on prices go?

During the interview, questions were raised about the actual feasibility of the customs exemptions granted to the meat import sector, noting that their value is estimated at about 15 million shekels annually, at a time when citizens, according to what was raised during the dialogue, do not see a tangible decrease in meat prices commensurate with the size of these concessions.

Gharib wondered who actually benefits from these exemptions, and whether they achieve the primary goal of alleviating the living burdens on citizens, or whether part of their economic impact remains within the import, distribution, and trade cycles without reaching the final consumer.

In his response, Shehadeh stressed the need to distinguish between customs exemptions and tax obligations, explaining that meat imported within the established quotas enjoys customs exemptions in accordance with the applicable trade arrangements, while income tax and value-added tax remain due according to the relevant regulations.

He pointed out that the shares allocated to the Palestinian side are based on the trade arrangements that have been in place since 1994, explaining that the West Bank’s share amounts to about 7,500 tons annually, and that these quantities are part of an import system governed by specific procedures and controls.

He stressed that the Ministry realizes the importance of ensuring that customs privileges are reflected in prices, and that the new procedures aim to address this issue by strengthening oversight and linking benefit from quotas to adherence to price controls.

A unified government committee to manage quotas and prevent randomness in distribution

Shehadeh explained that the Ministry of National Economy, in accordance with its legal powers, assumes the presidency of the unified committee for managing trade quotas, which was formed by a decision of the Council of Ministers on September 10, 2024.

He stated that the committee includes representatives of about five relevant ministries, and is responsible for organizing the distribution of commercial shares according to a legal framework and standards aimed at achieving justice, integrity and transparency among the applying companies.

He pointed out that the committee is responsible for organizing the distribution of the prescribed quotas, including an annual quota of 50,000 heads within the quota system, in addition to dealing with other commodity quotas in accordance with the approved mechanisms.

He stressed that the goal of forming the unified committee is to ensure the existence of a clear institutional reference for managing quotas, instead of leaving the distribution process to non-unified procedures, and in a way that enhances oversight of the trade privileges granted by the government to importers.

Strict criteria for selecting companies benefiting from the quota

In response to questions about the criteria that determine the companies eligible to obtain import quotas, Shehadeh explained that the committee approves a set of technical, administrative and operational conditions before approving the submitted applications.

He pointed out that the applying companies must be specialized in the relevant field of import, and possess the infrastructure, logistical capabilities, and operational capabilities necessary to handle the quantities allocated to them.

He stressed that having the ability to ensure the continuity of supply chains and provide goods to local markets represents a basic criterion in the evaluation process, given the importance of maintaining the flow of products and not causing a shortage in supply.

He explained that the applications are subject to study by the competent committee, which works to distribute the shares fairly and transparently among the qualified companies, according to the mechanism approved by the Council of Ministers.

He stressed that the Ministry does not view the distribution of quotas as an administrative procedure separate from the movement of markets, but rather as part of a system aimed at regulating imports and ensuring the stability of supplies and prices.

An expected price ceiling for frozen meat... and commitment is a condition for benefiting from the quotas

In the most prominent revelations of the interview, Shehadeh announced that the Ministry of National Economy is moving to set a price ceiling for imported frozen meat within the quota system, provided that the beneficiary companies adhere to the prices decided by the General Administration for Consumer Protection.

He explained that this trend will include the quotas that were distributed last September, noting that importers will be obligated during the next stage to adhere to the specified prices.

He stressed that setting the price ceiling will not be done randomly, but rather based on a scientific and field study that takes into account actual costs, profit margins and commercial conditions, and preserves the rights of various parties, including importers, distributors, retailers and consumers.

He explained that the goal is to achieve a balance between the sustainability of commercial activity and ensuring that meat reaches citizens at reasonable prices, especially since these goods benefit from government privileges that are supposed to be reflected on the final consumer.

He stressed that setting prices will be accompanied by tightening field supervision of the markets, in coordination between the General Administration of Consumer Protection and the competent government agencies.

Depriving violators of the quota in the future

Shehadeh warned that companies that do not adhere to the established price ceiling will face measures that affect their eligibility for future import quotas.

He stressed that the Ministry will adopt compliance with prices within the standards that govern importers’ continued benefit from the quota system, noting that violators will later be deprived of obtaining new quotas.

He explained that these measures aim to ensure that customs privileges do not turn into commercial gains that have no impact on citizens, and to strengthen companies’ commitment to the economic and social purpose of granting these quotas.

He pointed out that the role of the Ministry of National Economy does not end with distributing quotas to companies, but rather extends to monitoring their impact on the markets in cooperation with the competent regulatory authorities.

Joint control of prices and supply chains

Regarding follow-up mechanisms, Shehadeh explained that the Ministry works in coordination with the Ministry of Health, the Ministry of Agriculture, and the relevant regulatory authorities, in addition to the General Administration for Consumer Protection, to monitor the movement of goods and their prices in the Palestinian markets.

He pointed out that follow-up operations include monitoring supply chains and quantities available in the markets, monitoring prices and the extent of companies’ compliance with approved controls and instructions.

He stressed that this control aims to ensure the regular supply of meat, prevent market imbalances, and verify that the granted quotas are reflected in the prices that reach consumers.

In this context, he explained that the actual impact of the quotas distributed in September would take a period of approximately one to three months to appear, until the imported quantities reach the markets and begin to be circulated within the various supply chains.

Government: Commercial privileges must be reflected on the citizen

Shehadeh stressed that the government's strategic goal in regulating trade quotas and granting related privileges is to provide basic goods at reasonable prices to citizens, and not just provide facilities to the import sector.

He explained that the directions of the Prime Minister and Minister of National Economy, Engineer Muhammad Al-Amour, are clear regarding the need to reflect the impact of the quota on the Palestinian consumer.

He stressed that the Ministry's instructions to the relevant departments focus on strengthening the governance of quota distribution, developing field oversight, and ensuring fairness and transparency in selecting the beneficiary companies.

He pointed out that the government seeks, through these measures, to achieve a balance between the interests of importers and traders on the one hand, and the right of citizens to obtain goods at fair prices on the other hand.

He reiterated that government concessions should achieve their economic and social goals, and that access of goods to markets at acceptable prices represents the basic criterion for the success of new measures.