{"id":597542,"date":"2019-07-30T04:14:31","date_gmt":"2019-07-30T04:14:31","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/30\/cabinet-approves-final-customs-package-for-car-makers\/"},"modified":"2019-07-30T04:14:31","modified_gmt":"2019-07-30T04:14:31","slug":"cabinet-approves-final-customs-package-for-car-makers","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/30\/cabinet-approves-final-customs-package-for-car-makers\/","title":{"rendered":"Cabinet approves final customs package for car makers"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-06\"><\/a> <b>EXCLUSIVE- Cabinet approves final amendments on auto manufacturing incentives package: <\/b>The Madbouly Cabinet has approved final amendments to the Customs Act that will provide customs discounts to car manufacturers in return for increasing their use of local components, two government officials told Enterprise. The updated amendments split customs breaks into three tiers according to the percentage of local content used, streamlining <a href=\"https:\/\/enterprise.press\/stories\/2019\/06\/17\/egypt-to-provide-large-custom-discounts-to-power-its-domestic-car-industry\/\">previous plans<\/a> for a more complex five-tier system. Customs discounts will be awarded according to the following rules:<\/p>\n<ul>\n<li><b>Manufacturers sourcing less than 45%<\/b> of their components from local companies will pay an effective customs rate of 20% instead of 40%, provided they commit to increasing their use of local components; <\/li>\n<li><b>Manufacturers using domestic sources for 45% of their components <\/b>will pay a 5.6% customs rate on imported components;<\/li>\n<li><b>Manufacturers sourcing more than 45%<\/b> of their components domestically will get the choice of paying the 5.6% rate on individual components or paying an effective customs rate of 15-20%;<\/li>\n<\/ul>\n<ul>\n<li><b>A customs rate of 2%<\/b> will be applied to capital goods and machinery.<\/li>\n<\/ul>\n<p><b>Background:<\/b> The government <a href=\"https:\/\/enterprise.press\/stories\/2018\/07\/30\/govt-plans-to-scrap-automotive-directive-and-will-replace-it-with-special-zones\/\">scrapped the so-called automotive directive<\/a> last summer due to opposition in the House of Representatives and among auto importers. The package of incentives was designed to allow local manufacturers, whom industry backers argue support tens of thousands of skilled direct and indirect jobs, to better compete with EU, Moroccan and Turkish imports that receive customs breaks here in Egypt. The strategy was sharply opposed by our EU trade partners \u2014 particularly Germany, whose chancellor Angela Merkel is said to have addressed the issue directly at the highest levels of government in Egypt.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EXCLUSIVE- Cabinet approves final amendments on auto manufacturing incentives package: The Madbouly Cabinet has approved final amendments to the Customs Act that will provide customs discounts to car manufacturers in return for increasing their use of local components, two government officials told Enterprise. The updated amendments split customs breaks into three tiers according to the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[144,357,309,72,131,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-597542","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-automotive","tag-automotive-directive","tag-customs","tag-enterpriseam","tag-manufacturing","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"abfbad8d-26b6-457b-b409-9312ff5e37d2","is_powered_by":true,"section_story_id":"be6e89d9-d4b7-48ed-be74-f7715b341ecd","story_type":"1","photo_url":"","photo_position":"above","related_issue":[597528],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cabinet approves final customs package for car makers - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2019\/07\/30\/cabinet-approves-final-customs-package-for-car-makers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cabinet approves final customs package for car makers\" \/>\n<meta property=\"og:description\" content=\"EXCLUSIVE- Cabinet approves final amendments on auto manufacturing incentives package: The Madbouly Cabinet has approved final amendments to the Customs Act that will provide customs discounts to car manufacturers in return for increasing their use of local components, two government officials told Enterprise. The updated amendments split customs breaks into three tiers according to the [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2019\/07\/30\/cabinet-approves-final-customs-package-for-car-makers\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2019-07-30T04:14:31+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/07\/30\/cabinet-approves-final-customs-package-for-car-makers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/07\/30\/cabinet-approves-final-customs-package-for-car-makers\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Cabinet approves final customs package for car makers\",\"datePublished\":\"2019-07-30T04:14:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/07\/30\/cabinet-approves-final-customs-package-for-car-makers\/\"},\"wordCount\":265,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"automotive\",\"Automotive Directive\",\"customs\",\"EnterpriseAM\",\"Manufacturing\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/07\/30\/cabinet-approves-final-customs-package-for-car-makers\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2019\/07\/30\/cabinet-approves-final-customs-package-for-car-makers\/\",\"name\":\"Cabinet approves final customs package for car makers - 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Proposed amendments to the Customs Act that will provide customs discounts to car manufacturers in return for increasing their use of local components will be sent to the House of Representatives \u201csoon\u201d for review\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":594641,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/03\/will-egypts-auto-manufacturers-incentives-strategy-see-the-light-of-day-soon\/","url_meta":{"origin":597542,"position":1},"title":"Will Egypt\u2019s auto manufacturers incentives strategy see the light of day soon?","author":"enterpriseam admin","date":"3 September 2019","format":false,"excerpt":"Will the auto manufacturers incentives strategy see the light of day soon? The Madbouly Cabinet\u2019s economic group reviewed yesterday a proposed package of incentives for automotive manufacturers to spur domestic manufacturing and assembly, according to a Cabinet statement. Prime Minister Moustafa Madbouly ordered the finance and trade and industry ministries\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/7\/381.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":599046,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/17\/egypt-to-provide-large-custom-discounts-to-power-its-domestic-car-industry\/","url_meta":{"origin":597542,"position":2},"title":"Egypt to provide large custom discounts to power its domestic car industry","author":"enterpriseam admin","date":"17 June 2019","format":false,"excerpt":"EXCLUSIVE- We\u2019re going to be discussing a new set of incentives for the automotive industry this fall. The finance and trade ministries are drafting new incentives to spur domestic manufacturing and assembly that will include large custom discounts on automotive components that peak at nearly 100%, two government sources told\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/7\/381.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":598214,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/finmin-trade-ministry-expand-egypts-automotive-incentives-strategy-to-cover-all-industries\/","url_meta":{"origin":597542,"position":3},"title":"FinMin, Trade Ministry expand Egypt\u2019s automotive incentives strategy to cover all industries","author":"enterpriseam admin","date":"19 May 2019","format":false,"excerpt":"EXCLUSIVE- FinMin, Trade Ministry looking to expand automotive industry-style incentive strategy to other sectors: The finance, trade and industry ministers are working on a more expansive incentives strategy for all local industries based on its program for the automotive industry, a senior official in the government tells Enterprise. The program\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/7\/381.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":603135,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/04\/16\/government-finishes-draft-car-manufacturing-customs-tax-incentives-program\/","url_meta":{"origin":597542,"position":4},"title":"Government finishes draft car manufacturing customs tax incentives program","author":"enterpriseam admin","date":"16 April 2019","format":false,"excerpt":"EXCLUSIVE- It looks like the government\u2019s strategy for the automotive sector could soon see the light of day: The finance and trade ministries are finishing work their (not-the-automotive-directive) incentive program to encourage automotive manufacturing in Egypt, a senior government official told us. The program will grant customs discounts for auto\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/2\/31.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":594689,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/04\/car-manufacturers-say-floating-customs-exchange-rate-adds-more-burdens-on-the-industry\/","url_meta":{"origin":597542,"position":5},"title":"Car manufacturers say floating customs exchange rate adds more burdens on the industry","author":"enterpriseam admin","date":"4 September 2019","format":false,"excerpt":"Floating customs exchange rate adds to car manufacturers\u2019 concerns: The government\u2019s recent move to float the customs exchange rate presents additional obstacles for local car assemblers and could lead to more price increases in an already troubled market, Egyptian Automobile Manufacturers Association (EAMA) spokesman Khaled Saad told Al Mal. No\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/597542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=597542"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/597542\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/597528"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=597542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=597542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=597542"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=597542"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=597542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}