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Sunday, 26 November 2017

Automotive Directive will be issued in early 2018 -Kabil

Automotive Directive to be issued in early 2018? The Automotive Directive will “see the light” in early 2018, Trade and Industry Minister Tarek Kabil said yesterday, Al Borsa reports. The government is now putting the “final touches” on the draft law and should be sending it to the House of Representatives for review by the end of November, House Industry Committee Chair Ahmed Samir tells the newspaper. The bill — which is expected to grant local assemblers incentives to move further up the value chain to manufacturing — has undergone several amendments to appease different industry players, particularly car importers, who had been particularly outspoken against the law, claiming it violates trade agreements with the European Union. The ministry had hired a German consulting firm to help with draft the legislation and incorporate feedback from different sources.

Under the amended bill, manufacturers would be eligible for incentives if they are able to meet a minimum local component requirement of 45%, which over the course of eight years would rise gradually to 60% for personal vehicles and smaller of group transport vehicles. Local content requirements for light trucks would peak at 70%. Manufacturers would also receive exemptions from development fees if they produce a certain number of vehicles on an annual basis, or if they export 25-40% of their total output a year.

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