Monday, September 8, 2008

Catalytic converter industry made to wait over new plans 5th September 2008!!!

The R20 billion catalytic converter industry in South Africa will have to wait until later in the financial year to find out the implications of a new government-approved automotive production and development programmer.




The new scheme - which is aiming to bring the country in line with the World Trade Organisation's (WTO) industry-support requirements - will include moderate tariffs, local assembly and investment allowances and a production incentive.




However, Trade and Industry Department Director-General Tshediso Matona confirmed yesterday (September 4th) that support for catalytic converters will require further consultation and the completion of the cap for inputs of platinum group metals.




The programmer will also charge vehicle assemblers an import tariff of 20 per cent for such components, but Mr Matona said the charges would offer "just enough protection to justify continued local vehicle assembly".




Light vehicle manufacturers with annual productions of over 50,000 units would subsequently be entitled to import 20 per cent of their components duty free for three years from 2013 under the local assembly allowance.



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