{"id":341,"date":"2024-12-16T16:18:22","date_gmt":"2024-12-16T16:18:22","guid":{"rendered":"https:\/\/choopel.com\/en\/?p=341"},"modified":"2024-12-16T16:24:22","modified_gmt":"2024-12-16T16:24:22","slug":"the-law-for-the-organization-of-the-automotive-industry","status":"publish","type":"post","link":"https:\/\/choopel.com\/en\/the-law-for-the-organization-of-the-automotive-industry\/","title":{"rendered":"The Law for the Organization of the Automotive Industry (approved on November 17, 2021)"},"content":{"rendered":"
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Article 1 – Import Tariff Regulation<\/strong><\/span><\/h1>\n<\/header>\n
\n The government is required to determine the import tariff for passenger vehicles based on engine size, fuel consumption, and emissions.<\/strong><\/span>
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Article 2 – Competitiveness of the Automotive Industry<\/strong><\/span><\/h4>\n

The government must, within three years, create conditions for competitiveness in the automotive industry<\/strong> through policy-making, oversight, and regulation in accordance with the principles of Article 44 of the Constitution.<\/span>
\n<\/section>\n

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Article 3 – Development of New Technologies<\/strong><\/span><\/h4>\n

The Ministry of Industry, Mines, and Trade (IMT) must, in cooperation with other ministries, draft a strategic document for new technologies (electric, hybrid, and autonomous vehicles) within one year.<\/span><\/p>\n

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  • Note:<\/strong> The government may impose a tiered tax on high-consumption vehicles, and the revenue will be allocated to public transportation development.<\/strong><\/span><\/li>\n<\/ul>\n<\/section>\n
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    Article 4 – Conditions for Vehicle Importation<\/strong><\/span><\/h4>\n

    Vehicle importation is allowed based on a regulation from the Ministry of Industry, Mines, and Trade, subject to the following conditions:<\/span><\/p>\n

      \n
    1. Technical specifications:<\/strong> Priority will be given to electric, hybrid, fuel-efficient, and safe vehicles.<\/span><\/li>\n
    2. After-sales service and technology transfer.<\/strong><\/span><\/li>\n
    3. Importer qualifications and official representation.<\/strong><\/span><\/li>\n
    4. Market regulation:<\/strong> Taking into account currency resources and support for domestic production.<\/span><\/li>\n<\/ol>\n
        \n
      • Note 1:<\/strong> Emergency non-commercial imports are exempt from this provision.<\/span><\/li>\n
      • Note 2:<\/strong> This provision is valid for five years.<\/span><\/li>\n<\/ul>\n<\/section>\n
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        Article 5 – Attracting New Technologies<\/strong><\/span><\/h4>\n

        The Ministry of Industry, Mines, and Trade should facilitate the entry of independent automotive technologies through joint ventures with reputable global companies.<\/strong><\/span>
        \n<\/section>\n

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        Article 6 – Standards and Quality<\/strong><\/span><\/h4>\n

        The National Standards Organization is responsible for monitoring the compliance with standards for both imported and domestically produced vehicles.<\/span><\/p>\n

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        • Note:<\/strong> Domestic manufacturers are required to display the percentage of domestic production on their vehicles.<\/span><\/li>\n<\/ul>\n<\/section>\n
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          Article 7 – Price Transparency<\/strong><\/span><\/h4>\n

          Automakers must disclose the cost price, profit percentage, and final price<\/strong> to the Competition Council; failure to do so will be considered a violation.<\/span>
          \n<\/section>\n

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          Article 8 – Definition of Vehicles<\/strong><\/span><\/h4>\n

          This law applies to all types of passenger cars, vans, minibuses, buses, trucks, trailers, and motorcycles.<\/span>
          \n<\/section>\n

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          Article 9 – Organization of Heavy Vehicles<\/strong><\/span><\/h4>\n

          The Ministry of Industry, Mines, and Trade is tasked with improving the quality of both imported and domestically produced heavy vehicles (such as construction and agricultural machinery).<\/span>
          \n<\/section>\n

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          Article 10 – Scrapping of Old Vehicles<\/strong><\/span><\/h4>\n

          The use of old vehicles is prohibited under Article 8 of the Clean Air Act. The government must provide facilities for replacing old vehicles.<\/span><\/p>\n

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          • Note:<\/strong> Domestic automakers and importers must provide a scrapping certificate for each vehicle.<\/span><\/li>\n<\/ul>\n<\/section>\n
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            Additional Provisions (2024\/03\/28)<\/strong><\/span><\/h4>\n
              \n
            1. Article 11:<\/strong> The import of used vehicles is allowed.<\/span><\/li>\n
            2. Article 12:<\/strong> The value of imported vehicles (new and used) will be determined annually by the Ministry of Industry, Mines, and Trade and Customs.<\/span><\/li>\n
            3. Article 13:<\/strong> The standards for imported vehicles must comply with the approval of the National Standards Organization and the Environmental Protection Agency.<\/span><\/li>\n<\/ol>\n<\/section>\n