Assembling companies will use more local inputs

Ecuadornews:

The automotive industry and the Ministry of Industries and Productivity reached an agreement to increase local component in vehicles progressively. The minimum percentage of national integration is currently 5%, according to Ministerial Agreement 12392, in effect since 2012. With the new agreement, the minimum should reach 19% in three years. The increase will take place gradually. In principle, a minimum of 16% shall be achieved within a term yet to be defined.

The agreement was announced yesterday (August 9) by the Minister of Industries and Productivity Eva García during the opening of the Automotive sector board of the Productive and Tax Advisory Council. The agreement will take effect immediately, Garcia said. The portfolio of Industries plans to publish the document between Monday and Tuesday next week.

The Minister also indicated that the application of a tariff table for parts required by the industry, called CKD, will be inversely proportional to the percentage of local components. That is, as local components increase, the import tariff will decrease, which is currently at 15%. “The aspiration is to reach zero,” she said. (I)

Source: http://www.elcomercio.com/actualidad/ensambladoras-autos-acuerdo-insumos-ecuador.html