ABSTRACT
The substance of the assistance package included the introduction of tariff quotas, which replaced the existing 80/20 market sharing arrangement. Imports under quota were dutiable at 57.5 per cent, general; out-of-quota imports were dutiable at 100 per cent, to be phased down to 57.5 per cent by 1992. The existing 85 per cent local content scheme was essentially retained, and access to export facilitation - in which producers received duty-free import entitlements in return for their (value-added) exports - was widened. An Automotive Industry Authority (AIA) was established to oversee the arrangements. In 1986 the government introduced penalties for low-volume production, and in early 1987, separate export facilitation provisions for vehicle importers.
