Industrial Rebates

Are you a manufacturer incurring huge import duties on raw materials or components that are not manufactured locally? Alternatively, are the raw materials or components manufactured locally but in insufficient quantities?

An industrial rebate enables a local manufacturer to import raw materials and components without incurring an import duty.

An industrial rebate can be created if there is no local manufacturing or production of the raw materials or components. Alternatively, if the raw materials or components are available locally in insufficient quantities or not in the correct specification or variety.

In contrast to a temporary rebate, an industrial rebate; specifies what the product imported under rebate will be used to manufacture or produce, specify the tariff code under which the manufactured product is classified.

Traders or companies who are not manufacturers cannot benefit from an industrial rebate. Traders benefit from a temporary rebate,

The process to create an industrial rebate

Applications are made to The International Trade Administration Commission (ITAC). Specific regulations prescribe the manner in which ITAC conducts the temporary rebate investigation process.

Application and verification

A well prepared, motivated, and complete application is the most important part of the process. The key information included in the application is financial, labour, and market information among others.

ITAC conducts a verification exercise to check the accuracy of the information provided in the application against the company records.

Comments and oral hearings

ITAC sends out a non-confidential version of the application to interested parties soliciting preliminary comments.

When this phase is complete, a decision to initiate an investigation is taken and the investigation is published in the Government Gazette.

Interested parties can submit comments regarding the requested industrial rebate. In addition, all interested parties have an opportunity to apply for an oral hearing to present arguments verbally.

Final decision

ITAC makes a recommendation to the Minister of Trade, Industry, and Competition (DTIC) after considering all facts and information at its disposal.

The process takes 6 – 12 months.

  • Duty increase investigation on sulphates, alums, peroxosulphates of copper

    The International Trade Administration Commission (ITAC) initiated a duty increase investigation on sulphates, alums, peroxosulphates of copper. The products under investigation fall under tariff subheading 2833.25 and are currently duty-free. The applicant, Kimleigh Chemicals SA (Pty) Ltd is requesting a 10% duty. Motivating for the duty increase, the applicant indicated that local producers do not

    July 23, 2021
  • NRCS levy returns: What you need to know

    Importers and manufacturers of products falling with the scope of the National Regulator of Compulsory Standards (NRCS) technical regulations are required by law to submit levy returns. Despite this requirement, many importers often find out about levy returns under unpleasant circumstances. This is either during a random inspection by NRCS officials or after a container

    July 12, 2021
  • Anti-dumping duties on frozen chips removed

    The anti-dumping duties on frozen chips imported from Belgium and Netherlands have been terminated. Although the gazette was published on 9 July 2021, the termination applies retrospectively from 26 January 2021. It was necessary for the International Trade Administration Commission (ITAC) to terminate the anti-dumping duties because the sunset review investigation was not finalised within

    July 12, 2021
  • New industrial rebate for warp knit fabrics used in manufacturing upholstered furniture

    The new industrial rebate on warp knit fabrics has been implemented today, 28 May 2021. The warp knit fabric imported duty-free under the rebate will specifically be used in manufacturing upholstered furniture. An industrial rebate enables a local manufacturer to import raw materials and components without incurring an import duty. The rebate can be created

    May 28, 2021
  • Industrial rebate investigation on titanium dioxide initiated

    On 21 May 2021, the International Trade Administration Commission (ITAC) initiated an industrial rebate investigation on titanium dioxide used in manufacturing white masterbatch. This is the second industrial rebate investigation initiated on the same product following another industrial rebate application on titanium dioxide for use in the manufacturing of paints, varnishes, prepared driers initiated in

    May 28, 2021
  • Minimum Market Access (MMA) quota applications open

    Minimum Market Access (MMA) quota permit applications for the second quarter of 2021 are currently open and close on the 31st of May 2021. MMA permits allow importers of specific products covered under the MMA regime to benefit from preferential import duty rates. This helps in cost savings especially on products that incur large import duties. Permits are

    May 14, 2021
  • Wheat and wheaten flour import duties increase

    The import duties on wheat and wheaten flour have increased today (14 May 2020) from free of duty to 19,17c/kg and 28,76c/kg respectively, in terms of the existing variable tariff formula. The duty had been on a downward trend since the beginning of the year until the duty was eliminated on 10 March. What causes

    May 14, 2021