{"id":630706,"date":"2018-04-30T04:15:34","date_gmt":"2018-04-30T04:15:34","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/30\/trade-and-industry-ministry-paves-way-for-automotive-directive-and-sets-46-domestic-component-requirement\/"},"modified":"2018-04-30T04:15:34","modified_gmt":"2018-04-30T04:15:34","slug":"trade-and-industry-ministry-paves-way-for-automotive-directive-and-sets-46-domestic-component-requirement","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/30\/trade-and-industry-ministry-paves-way-for-automotive-directive-and-sets-46-domestic-component-requirement\/","title":{"rendered":"Trade and Industry Ministry paves way for Automotive Directive and sets 46% domestic component requirement"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-04\"><\/a> <strong>Trade and Industry Ministry paves way for Automotive Directive and sets 46% domestic component requirement:<\/strong> Trade and Industry Minister Tarek Kabil issued a directive mandating that 46% of the components of a domestically-assembled car be sourced locally, according to <a href=\"https:\/\/www.facebook.com\/mift.media\/posts\/1667995579935903\">a statement from the ministry on Sunday<\/a>. The decision also mandates that 28% of a car has to be assembled in Egypt for it to qualify as a \u201cbuilt in Egypt\u201d car. This portion will be reduced by 1% every year following implementation of the decision. Kabil said that the current 45% local content requirement is too little to drive the development of a local manufacturing industry. The decision goes into effect next year.<\/p>\n<p><strong>The move is a significant step toward the issuance of the Automotive Directive<\/strong>, which would offer assemblers incentives to move up the value chain into manufacturing. Kabil said the directive is being looked at by the ministry, the House of Representatives\u2019 Industry Committee and members of the private sector. Kabil did not say when the Automotive Directive, which stalled on its first attempt in the House thanks to heavy lobbying by car importers, will be ready or issued. It has been with an unnamed German consultancy since last year.<\/p>\n<p><strong>The ministry also plans to establish a database to keep tabs on the implementation of the local content changes <\/strong>and measure which local assemblers abide the decisions and are thus eligible for incentives, said Kabil. The committee will also set quality control standards and ensure that these are identical to those in European brand cars. The database will be set up by a committee headed by the Assistant Trade and Industry Minister and will include the head of the Industrial Development Authority.<\/p>\n<p><strong>There are 245 days left until 1 January 2019. <\/strong>That\u2019s when customs on vehicles imported from the European Union are set to fall to zero. That\u2019s when local assemblers close their doors and put thousands of skilled workers out on the street, absent the protections and incentives in the Automotive Directive.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Trade and Industry Ministry paves way for Automotive Directive and sets 46% domestic component requirement: Trade and Industry Minister Tarek Kabil issued a directive mandating that 46% of the components of a domestically-assembled car be sourced locally, according to a statement from the ministry on Sunday. The decision also mandates that 28% of a car [&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":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-630706","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"8be514b4-b749-40e1-a79b-90d19c660ed1","order":"0","is_powered_by":true,"section_story_id":"2c2d6b12-1071-437b-b9a5-8afd8447c926","story_type":"1","photo_url":"","photo_position":"above","related_issue":[630697],"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>Trade and Industry Ministry paves way for Automotive Directive and sets 46% domestic component requirement - 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\/2018\/04\/30\/trade-and-industry-ministry-paves-way-for-automotive-directive-and-sets-46-domestic-component-requirement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trade and Industry Ministry paves way for Automotive Directive and sets 46% domestic component requirement\" \/>\n<meta property=\"og:description\" content=\"Trade and Industry Ministry paves way for Automotive Directive and sets 46% domestic component requirement: Trade and Industry Minister Tarek Kabil issued a directive mandating that 46% of the components of a domestically-assembled car be sourced locally, according to a statement from the ministry on Sunday. 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The Trade and Industry Ministry plans to hold a meeting today with a number of auto companies to discuss an order issued by minister Tarek Kabil last month on local content that is widely considered to be a forerunner to the Automotive\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":629046,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/21\/trade-minister-forms-local-automotive-manufacturing-committee\/","url_meta":{"origin":630706,"position":1},"title":"Trade Minister forms local automotive manufacturing committee","author":"enterpriseam admin","date":"21 May 2018","format":false,"excerpt":"Another step toward the Automotive Directive? Trade Minister Tarek Kabil issued yesterday a decree forming a committee in charge of implementing higher local content requirements for domestic assemblers and manufacturers. The committee will draft the executive regulations to the ministry\u2019s directive from last month that requires 46% of the components\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":637788,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/11\/26\/automotive-directive-will-be-issued-in-early-2018-kabil\/","url_meta":{"origin":630706,"position":2},"title":"Automotive Directive will be issued in early 2018 -Kabil","author":"enterpriseam admin","date":"26 November 2017","format":false,"excerpt":"Automotive Directive to be issued in early 2018? The Automotive Directive will \u201csee the light\u201d in early 2018, Trade and Industry Minister Tarek Kabil said yesterday, Al Borsa reports. The government is now putting the \u201cfinal touches\u201d on the draft law and should be sending it to the House of\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":631211,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/03\/13\/kia-local-partner-to-invest-egp-4-2-bn-in-egypt-assembly-line-over-the-next-five-years\/","url_meta":{"origin":630706,"position":3},"title":"Kia, local partner to invest EGP 4.2 bn in Egypt assembly line over the next five years","author":"enterpriseam admin","date":"13 March 2018","format":false,"excerpt":"INVESTMENT WATCH- Kia to invest in EGP 4.2 bn assembly line over the next five years: Kia Motors signed an agreement with Egyptian International Trading & Agencies, which would see them invest EGP 4.2 bn in a car assembly facility in Egypt over the next five years, according to a\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":632688,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/02\/18\/local-component-requirements-for-automotive-directive-are-being-revised-minister\/","url_meta":{"origin":630706,"position":4},"title":"Local component requirements for Automotive Directive are being revised -Minister","author":"enterpriseam admin","date":"18 February 2018","format":false,"excerpt":"LEGISLATION WATCH- Local component requirements for Automotive Directive are being revised: Trade and Industry Minister Tarek Kabil said yesterday that the minimum local component requirements that would make producers eligible for incentives under the Automotive Directive are being revised, according to a ministry statement (pdf). Kabil had said last November\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":599096,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/18\/minimum-for-domestic-content-in-egypt-assembled-cars-is-now-back-at-28\/","url_meta":{"origin":630706,"position":5},"title":"Minimum for domestic content in Egypt-assembled cars is now back at 28%","author":"enterpriseam admin","date":"18 June 2019","format":false,"excerpt":"Ministry explains decision to scrap former Trade Minister Nassar\u2019s car assembly policy: Trade and Industry Minister Amr Nassar\u2019s decision to scrap of former minister Tarek Kabil\u2019s policy to increase the percentage of local content in domestically assembled cars is meant to give assemblers breathing room until a new set of\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\/2019\/6\/1903.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/630706","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=630706"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/630706\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/630697"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=630706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=630706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=630706"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=630706"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=630706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}