Temporary Rebates

A temporary rebate is a mechanism to provide import duty exemption temporarily in specific situations. Any company, whether traders or manufacturers can apply and benefit from a temporary rebate. 

Temporary rebates can be used in many situations, for examples when the only local producer of the product has an unforeseen plant breakdown for an extended period of time. Alternatively, if there is a shortage of a certain agricultural product following a drought. Whatever, the situation, a temporary rebate can be created following an application by industry.

Temporary rebates are subject to a permit being issued by ITAC prior to importing. This protects the local manufacturer or producer because once the temporary situation ceases to exist; ITAC may decide not to issue rebate permits.

Unlike an industrial rebate, a temporary rebate does not specify what the product imported under rebate will be used for. This is a key difference between temporary and industrial rebates. Once imported under a temporary rebate the product can be used to manufacture, produce anything or be resold.

The process to create a temporary rebate

An application is 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 send 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 temporary 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.

  • New industrial rebate for warp knit fabrics used in manufacturing upholstered furniture

    The new industrial rebate on warp knit fabrics has been implemented today, 28 May 2021. The warp knit fabric imported duty-free under the rebate will specifically be used in manufacturing upholstered furniture. An industrial rebate enables a local manufacturer to import raw materials and components without incurring an import duty. The rebate can be created

    May 28, 2021
  • Industrial rebate investigation on titanium dioxide initiated

    On 21 May 2021, the International Trade Administration Commission (ITAC) initiated an industrial rebate investigation on titanium dioxide used in manufacturing white masterbatch. This is the second industrial rebate investigation initiated on the same product following another industrial rebate application on titanium dioxide for use in the manufacturing of paints, varnishes, prepared driers initiated in

    May 28, 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
  • New rebate for textile yarns and textile fabrics

    The International Trade Administration Commission (ITAC), on 5 March 2021 published rebate guidelines on rebate item 311.40/00.00/01.04. The industrial rebate is for the importation of woven textile fabrics classifiable under chapters 51, 52, 53, 54, 55 and tariff heading 58.01. It’s important to note that, imported materials under the rebate are for the manufacture of

    March 8, 2021
  • Rebate investigation on outer rings of journal roller bearings

    The International Trade Administration Commission (ITAC) has initiated a rebate investigation on outer rings of journal roller bearings. The products are classifiable under tariff subheading 8482.99.17. A temporary or industrial rebate provides an exemption from paying duty, typically because the raw material used in a given production process is not available locally. Timken South Africa

    March 5, 2021
  • Flat steel products rebate: A looming showdown

    The International Trade Administration Commission of South Africa (ITAC) received a policy directive from the Trade, Industry, and Competition Minister to investigate the possibility of creating a rebate facility on flat steel products. If the rebate is created, Customs duties and Safeguard duties on the products will be waived. Flat steel is used by downstream

    February 11, 2021