ITAC rebates on steel products

Various duties have been imposed on primary steel products especially between 2015 – 2018 including on some types and grades of steel products not manufactured locally.

However, to exclude steel products not manufactured locally from incurring import duties, ITAC created rebates across many steel products used by downstream manufacturers.

Full rebate of duty or full exemption of duty is provided for general Customs duties and safeguard duties on steel products.

Steel products that already have rebates in place are many, but these include hot rolled steel boilerplate, hot rolled steel plate, structural steel, hot-rolled coils, flat-rolled products of iron or non-alloy steel, flat-rolled steel, coated steel among others.

Rebate permit

To import under rebate, an ITAC rebate permit must be applied for and approved before importation. In this case, a rebate permit is provided to Customs when clearing together with other clearing documents.

A rebate can also be applied for post importing through the drawback provision (rebate item 521.00). This is suitable if the imported steel raw materials and components are used in the manufacture of products destined for the export market.

Steel rebates are are found in schedule 3 and 4 of the Customs and Excise Act.

Schedule 3 rebates

Schedule 3 rebates are commonly known as industrial rebates. They provide full import duty exemption on raw materials and components used to manufacture products classified in specific tariff subheadings. This allows local downstream manufacturers to source at world prices.

Schedule 4 rebates

Rebates under this schedule are known as temporary rebates. They allow import duty exemption on products that are temporarily not available or available in insufficient quantities in the domestic market. Temporary rebates enable the importation of raw materials and components at world competitive prices on products that attract duties.