New Local Content Legislation

An amendment has recently been made to the Law on “Maximum Utilization of Production and Services Potency in Providing Country’s Needs and Promotion of Exports” superseding all previous legislations in this respect. The amendment has added substantial detail to the ambiguously drafted previous local content law, extended the scope of the law, created a Supervisory Board to monitor its application and imposes new criminal punishments as well as heavy fines on its violations.
As far as the requirement of local content is concerned, the 51% percentage remains the same as the past but there are plenty of significant changes...

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