A year after the former Minister of Industry and Trade issued a decree No. 371 in April 2018, which aimed to regulate the method of determining the percentage of domestic manufacturing in the automotive industry and its feeder industries, which determined that the percentage of domestic manufacturing in the automobile industry is less than 46%, it was officially canceled Sunday June 16 by the decision of the Ministry of Industry, even before the start of its implementation by companies.
The Ministry of Industry issued a decision to determine the percentage of domestic manufacturing 46% and the percentage of the contribution of the assembly line in the rate of domestic manufacturing of the car 28%, to be reduced by 1% per year starting from the year following the date of this decision, companies were given a period of one year to adjust their situation.
The Ministry of Industry said in a statement that it was aware of this decision to maintain the conditions of the existing companies, where the new criteria for determining the rates of domestic manufacturing in the car industry and the contribution of assembly lines will be implemented after one year of the decision, Status.
A year later, Decree No. 371 of 2018 concerning the amendment of the percentage of domestic manufacturing in the automotive industry was replaced by Decree No. 571 of 2019, which was granted by the Ministry to companies to adjust their situation.
According to a government source for the "seventh day", the decision to cancel the rates of domestic manufacturing was issued two months ago, in April 2019, but was officially adopted by the Minister of Industry and Trade June 16, following a meeting attended by officials of the Ministry of Investment and business and military production, Was canceled one year after its issuance, the period granted to companies to adjust their situation, and was suspended and officially canceled before it was implemented by companies.
The Ministry of Industry decided 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 and the work of the Minister of Commerce No. 907/2005 regarding the percentage of local manufacturing in the automobile assembly industry.
The decision was canceled as the first step in the national strategy of the automobile industry and its feeder industries, which was prepared in coordination and cooperation with a number of concerned parties, and stopped talking about it completely after the departure of former Minister of Industry Tariq Qabeel.
The canceled decision included the formation of the local manufacturing committee for the automotive industry to prepare an integrated database for the automotive industry and its feeder industries, including all stages of the operations related to local manufacturing of cars, the development of automated models to calculate the value added of the components and review the lists of components of cars (fully dismantled) And to ensure that they are compatible with the parent companys lists, as well as the percentage of the contribution of each component of the list of components of the vehicle (fully dismantled) to the local manufacturing rate of the vehicle, as well as the revision of the local manufacturing rates achieved for each model separately.