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.

  • Provisional anti-dumping duties imposed on pasta imported from Egypt, Latvia, Lithuania and Turkey

    Provisional anti-dumping duties have been imposed on pasta imported from Egypt, Latvia, Lithuania, and Turkey. The anti-dumping duties came into effect on 1 April 2021 and will remain in place until 16 September 2021. Thereafter, final anti-dumping duties may or may not be imposed. However, considering that ITAC has already made a preliminary finding of

    April 5, 2021
  • Anti-dumping investigation on clear float glass imported from Malaysia initiated

    The International Trade Administration Commission (ITAC) has initiated an anti-dumping investigation on clear float glass originating in or imported from Malaysia. The anti-dumping application was lodged by PFG Building Glass, a division of PG Group (Proprietary). This is the only local manufacturer of the subject product. Scope of the investigation The products under investigation are

    March 19, 2021
  • The poultry tariff structure under review

    The International Trade Administration Commission (ITAC) has initiated an investigation to review the tariff structure on poultry. The investigation has initiated following a directive from the Minister of Trade, Industry, and Competition. The South African tariff book contains tariff codes at 6 digits and 8 digits levels. The 6 digits tariff codes are the same

    March 17, 2021
  • Creation of temporary rebate provision of customs duties and safeguard duties on flat steel products

    On 16 March, the International Trade Administration Commission (ITAC) initiated a rebate investigation on safeguard duties and ordinary Customs duties covering various flat-rolled products. The investigation has initiated following a policy directive from the Trade, Industry, and Competition Minister to investigate the possibility of creating the rebate. A rebate provides an exemption of duty payment. In

    March 17, 2021
  • Safeguard rebate investigation on flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more

    On 16 March, the International Trade Administration Commission (ITAC) initiated a rebate investigation of safeguard duties on flat-rolled products. Specifically, the investigation covers the following product dimensions: “Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, in coils, not further worked than hot-rolled, pickled, of a thickness of 3

    March 17, 2021
  • Wheat import duty drops to zero

    Import duties on wheat and wheaten flour dropped to zero with effect from 10 March 2021. The downward trend has continued since November 2020. On 12 February 2021, the duty dropped considerably from 54.42c per kg to 10.27c per kg and flour from 81.63c per kg to 15.41c per kg. It remains to be seen

    March 12, 2021
  • The United Sates imposes anti-dumping duties on aluminium sheet from 18 countries

    The U.S. Commerce Department issued final anti-dumping duties on common alloy aluminium sheets from 18 countries covered in the investigation. Common alloy aluminium sheet is a flat-rolled product used in building facades and truck trailer bodies to street signs. South Africa was covered in the investigation that initiated in April 2020. The US federal register indicates

    March 8, 2021