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.