Auto parts manufacturers seek export incentives

Local autoparts makers are asking the Board of Investments (BOI) to grant them the same export incentives that the government is planning to give to local car manufacturers who plan to export completely built up (CBU) vehicles.

Local autoparts makers said that since they also export and bring in dollar revenues, they should be entitled to the same export incentives that government is planning to give to CBU exporters.

Because of the autoparts makers appeal, the BOI has not been able to complete its work on the export incentives for the auto industry which is supposed to be completed this month.

The government is planning to grant export incentives to local automakers to encourage them to go into more CBU production.

However, local automakers must first reach a base export level of at least 10,000 units before they will be entitled to an export credit of around $600 per CBU.

Local autoparts makers are asking for the same export credit and are also willing to meet a base export level.

Government is reportedly willing to accommodate the autoparts makers provided that they work with other local car assemblers.

Government has reportedly assured the local autoparts makers that it will study their request.