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 if there is no local manufacturer or producer of specific 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.

The new rebate provision is found in Schedule 3 of the Customs and Excise Act as rebate item 320.01/6005.3/01.05 and is described as below:

Warp knit fabrics (including those made on galloon knitting machines) (excluding those of heading 60.01 to 60.04), of synthetic fibres, dyed or printed, laminated with another fabric that is either knitted or woven, of a mass exceeding 410 g/m2 but not exceeding 450 g/m 2 and having a width exceeding 120 cm but not exceeding 150 cm, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit for use in the manufacture of upholstered furniture classifiable in tariff heading 94.01

To import the product under rebate, an ITAC permit is required.

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