FILE PHOTO: Newly manufactured cars are seen at the automobile terminal in the port of Dalian, Liaoning province, China July 9, 2018. REUTERS/Stringer/File Photo
CAIRO - 17 June 2019: The Ministry of Industry decided to cancel decision No. 371 of 2018, concerning the amendment of the percentage of local component manufacturing in the automotive industry, to be replaced by Decree No. 571 of 2019.
Under the new resolution, the local component manufacturing ratio in the automotive industry, set at 46 percent, will be abolished mid-year.
Resolution 371, which was repealed, regulated the method of determining the percentages of local component manufacturing in the automotive industry and the industries feeding it. The resolution stipulated that the percentage of domestic manufacturing in the automobile industry should not be less than 46 percent, and that the contribution of the assembly line in the local manufacturing rate of the car should be 28 percent.
This percentage shall be reduced by 1 percent per annum starting from the year following the date of implementation of this resolution.
The Ministry of Industry decided today to return to work in accordance with the decision of the minister of industry and mineral resources No. 136 for the year 1994, regarding the assessment of the contribution rate of assembly lines, as well as the return of the work of the minister of commerce No. 907/2005.
According to a government source, the decision to cancel the local component manufacturing rates was issued two months ago, but was officially approved by the minister of industry and trade after a meeting attended by officials of the Ministry of Investment, and Ministry Military Production.