Manufacture of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers

Under MD 229 of 2025, 'Manufacturing of goods or materials' is a Qualifying Activity. Forensic auditors will verify 'substantial transformation'—the process must result in a new product with a different 4-digit HS Code or significant value-add. Simple assembly or 'screwdriver operations' may be recharacterized as non-qualifying distribution.

Audit Red Flag

Artificial fragmentation of the production chain where high-value fabrication occurs in the Mainland but is invoiced through the Free Zone entity to capture the 0% rate.

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