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International Trade Administration Act, 2002 (Act No. 71 of 2002)

Notices

Guidelines, Rules and Conditions Pertaining to Rebate Items

Notice No. 2080 of 2023

 

Notice No. 2080

13 October 2023

GG 49458

 

Department of Trade, Industry and Competition

 

REBATE ITEMS 311.42 AND 320.02 FOR REBATE OF DUTY ON WOVEN FABRICS AND OTHER FABRICS CLASSIFIABLE UNDER TARIFF HEADINGS 52.08,52.09,52.10,54.07,55.13, 55.14, 5903.20, 5212.1, 5212.2, 53.09,5512.1, 55.16,5903.20, 5903.10.90 AND 5903.90.90,6001.21 USED IN THE MANUFACTURE OF GOODS CLASSIFIABLE UNDER TARIFF HEADINGS 63.02, 63.03, 63.04, 63.07 AND 94.04.

 

1. Applications for permits must be addressed to the International Trade Administration Commission (ITAC), Private Bag X 753, Pretoria or delivered by hand to the DTI Campus, (Block E), 77 Meintjies Street, Sunnyside, Pretoria, 0002.

 

2. Applications for permits must be submitted according to the requirements of the attached application form. If the space provided in the application form is insufficient, please use the format of the application form to submit the requested information.

 

3. If all the information requested in the application form is not submitted, the application will not be considered, and it will be returned to the applicant.

 

4. At least fourteen (14) days should be allowed for the processing of applications and the issue of permits, provided that all necessary information has been submitted to ITAC and the application is deemed duly complete.

 

6. Each rebate permit issued defines the period during which the goods concerned can be cleared under the rebate. The period can be for a calendar year, and commences on the date on which the permit was issued. The permit may be issued for a shorter period as requested by the applicant, or as decided upon by ITAC.

 

7. If an applicant intends to apply for a subsequent permit for which the period of validity should commence on the day after the expiry date of the permit issued in terms of paragraph 6, this must be clearly indicated in a new application. The application must be submitted to ITAC at least one to two months prior to the expiry date of the previous permit as permits cannot be issued with retrospective effect.

 

8. Rebate permits issued will be subject to the following conditions:
8.1 The applicant(s) must manufacture end products as described in the rebate provision to such an extent that there is a visible permanent change in the fabrics, and a change in tariff heading;
8.2 ITAC, if deemed necessary, should physically inspect the equipment and manufacturing process prior to the issue of a rebate permit, and at least 70 per cent of manufacturing should be done by the applicant itself and therefore should not be outsourced;
8.3 The applicant must comply with labour laws and agreements gazetted by the Minister of Employment and Labour;
8.4 An applicant must, together with his application submit proof of registration with and a Certificate of Compliance obtainable from the relevant Bargaining Council;
8.5 The applicant must provide ITAC with its current SARS electronic access Pin in order to enable ITAC to verify full tax compliance status;
8.6 The applicant must provide, in each permit application, the number of jobs it expects to create annually as a result of the rebate (Conversion ratio from fabric to end product is approximately 1 employee: 6 000kg).
8.7. Should another rebate application, in terms of this rebate item, be submitted, a report detailing the applicant’s performance against its previously made job creation estimate and developmental undertakings, as detailed in paragraph 12 of the application form, must be provided as part of the new application.
8.8. The Applicant(s) must approach the Textile Federation (Texfed) and known local textile mills, including, but not limited to, Svenmill and Zaydtex for confirmation of the local availability of the fabrics to be imported under rebate and to confirm that the fabrics to be imported will not have a negative impact on downstream manufacturers. Confirmation should be in the form of a written letter from the entity concerned and must accompany the application.
8.9. Applications must be accompanied by proof of engagements with local textile mills regarding the development of commercially viable and sustainable manufacturing capability and capacity for fabrics to supply home textile manufacturers, with a view to increase localisation within the entire value chain. The applicant agrees that this information may be shared with the CTFL sector desk at the dtic.
8.10. The applicant can request the manufacturer to respond within 14 days of their request. Should the local manufacturers of textiles and textile articles not be able to supply the quantity requested, the applicant(s) need to obtain a confirmation letter from the manufacturer stating that they are not able to supply. The original letter needs to be submitted with the application form;
8.11. If the manufacturer unreasonably refuses to provide such a confirmation letter, ITAC will write a letter to the manufacturer informing them of the application and requesting them to confirm their production and production capacity. The manufacturer will then be allowed 7 days to respond to this letter. Should the manufacturer respond within the 7-day period, the information provided will be taken into account during the decision making process; and
8.12. Should, after receipt of the manufacturers response, or in the absence of such response, information be available that reflects that the manufacturer is reasonably unable to supply the quality and quantity of fabrics required in the required time frame, ITAC will be able to issue a permit without, or despite, the required letter of confirmation by the manufacturer. 9. Rebate permits may not be transferred in any manner by the holder thereof, to any other person, or be used to the benefit of any person and/or entity, not named in the permits; 10. Applicants making use of Cut Make and Trim (CMT), should attach to the application the following information:

 

9. Rebate permits may not be transferred in any manner by the holder thereof, to any other person, or be used to the benefit of any person and/or entity, not named in the permits;

 

10. Applicants making use of Cut Make and Trim (CMT), should attach to the application the following information:
(a) Name of the CMT;
(b) VAT certificate and SARS Pin;
(c) Certificate of Compliance obtainable from the Bargaining Council;
(d) Job profile of the CMT;
(e) Provide ITAC with production volumes to be carried by the CMT (the applicant should note that manufacturing by the CMT should not exceed 30 per cent of its own manufacturing volume as indicated in a permit issued by ITAC).

 

11. The applicant should take responsibility of all compliance issues as indicated in paragraph 8, as non-compliance will result in appropriate steps being taken.

 

12. If a prima facie case is established that any condition of this permit has not been complied with, the consignment in terms of which the rebate permit was issued may be seized by ITAC. If it is established that there was non-compliance, appropriate steps will be taken. These steps will be taken in terms of the International Trade Administration Act and the Customs and Excise Act, and can include criminal charges, withdrawal of the permit or permits concerned and/or the rejection of future applications for permits.