Rebate Item 412.11 for manufacturers impacted by the civil unrest in KwaZulu-Natal and Gauteng

The International Trade Administration Commission (ITAC) published the guidelines, rules, and conditions for certificates to be issued under Rebate Item 412.11(a). The rebate is applied by ITAC in the event or circumstances of a national disaster. This includes the unprecedented damage and destruction of many manufacturing businesses in KwaZulu-Natal and Gauteng.

The rebate is intended to assist with the duty-free importation of goods by domestic manufacturers impacted by the civil unrest. This is the second time ITAC will be using the rebate. It was first used at the start of COVID-19 to enable the duty-free import of essential products required to fight the pandemic. Moving forward, the rebate is currently open to manufacturers only.

Qualifying criteria

1.The applicant has been directly affected by the unrest in KwaZulu-Natal and Gauteng which occurred in or around the week of 11 July 2021, in that one or more of its manufacturing facilities were destroyed or materially damaged by persons taking part in the civil unrest.
2.The manufacturing processes of the applicant have been disrupted to such an extent that its domestic manufacturing output ceased or will be substantially reduced for a significant period of time resulting in an unforeseen shortfall in the volume of products that it had planned to supply from the manufacturing facility or facilities that were destroyed or materially damaged.
3.The impact on its manufacturing processes can have or had a material adverse effect on employment in the applicant.
4.The identical product/s that stand/s to be imported by the applicant is/are not available in the domestic market, in the same quantities that the applicant was able to produce periodically prior to the civil unrest, from another domestic manufacturer unaffected by the civil unrest.
5.Orders have been received by the applicant for, or the applicant offered for sales on the domestic market, product/s of the same model and/or type as the Shortfall Products;
6.The applicant is not able to fulfill such orders from its existing stocks.
7The applicant plans to bring its domestic manufacturing processes back to full capacity in the short to medium term.

Application process

To apply and obtain a rebate certificate, a two-step process is involved:

(1) An initial evaluation of eligibility by the DTIC. A written recommendation confirming eligibility will need to be issued by the DTIC.

(2) Submission to, and processing by, ITAC of applications forms (and supporting documents).

Need assistance with your rebate application? Contact us at infor@tradesolutions.co.za