- June 26, 2020
- Posted by: admin
- Categories: Industrial Rebates, Other News & Insights
The International Trade Administration Commission (ITAC) published draft guidelines for the reintroduction of rebate Item 412.11. The rebate provides for a full rebate of Customs duty on eligible goods during a national disaster. The COVID-19 pandemic is a national disaster.
Initially, rebate permits or certificates to import various essential goods without paying Customs duties and VAT were issued by ITAC from 30 March 2020 to 31 May 2020.
ITAC will once again commence issuing rebate permits from July 2020 to September 2020.
It is vital to note the following proposed key changes:
The draft guidelines propose additional rebate application requirements. Notably, importers will have to first try to buy the products from local manufacturers. ITAC will only consider issuing the rebate permit if the domestic manufacturers are not able to supply. Written confirmation from each manufacturer, or relevant industry association or other industry institution indicating that they cannot supply will be required.
This is a common requirement for most existing rebate provisions administered by ITAC, especially temporary rebates. However, without prescribed time frames within which local manufacturers of the products or relevant industry associations have to respond with written confirmations, it may be a challenge for importers who want to apply for the rebate permits.
The final list of eligible essential goods will change. Eligible goods currently identified in the draft guidelines are; respiratory masks (FFP2 and N95) and surgical rubber gloves. However, there might be more products added later on.
Proof showing confirmed orders may be necessary.
Interested parties have until Monday, 29 June 2020 to comment on the guidelines.