On 25 June 2021, the South African Revenue Service (SARS) announced the inclusion of Rebate Item 317.04, the removal of the reference to “production rebate credit certificate (PRCC)”, the insertion of production rebate certificate (PRC), as well as the insertion of various new rebate items. The intention of these amendments is to give effect to APDP Phase II, and is introduced in accordance with the Amendment to Part 2 of Schedule No.4 to the Customs and Excise Act, 1964.
The reasoning is contained in the International Trade Administration Commission of South Africa (ITAC) Minutes M10/2021, which is effective from 01 July 2021.
By the deletion of:
Rebate Item 460.17 87.00 03.02
Motor vehicles classifiable under subheadings 8701.20.10, 8702.10.81,8702.10.85, 8702.10.87, 8702.90.81, 8702.90.85, 8702.90.87, 8703.21.90, 8703.22.90, 8703.23.90, 8703.24.90, 8703.31.90, 8703.32.90, 8703.33.90, 8703.90.90, 8704.21.81, 8704.21.83, 8704.31.81, 8704.31.83, 8704.90.81, 8704.90.83, 8706.00.05 and 8706.00.15 entered on or before 31 December 2015 for the purposes of this item, specified by the International Trade Administration Commission, by means of a certificate:
Provided that the application for such certificate shall not be considered by the ITAC, unless the applicant -
(a) proves that he or she is a manufacturer of specified motor vehicles registered in terms of Chapter 98 or an automotive component manufacturer which is contracted to supply automotive components to a manufacturer of specified motor vehicles;
(b) has submitted a business plan on or before 31 December 2009 in respect of a project to invest in productive assets, with a view to producing specified motor vehicles or automotive components of sufficient quality, quantity and at competitive prices to supply to the common customs area and international markets in line with the guidelines issued by the International Trade Administration Commission; and
(c) has proved to the satisfaction of the International Trade Administration Commission that the project will contribute to the achievement of the overall objectives of the Government's Motor Industry Development Programme.
NOTES:
1. Productive assets include the following: Buildings erected for the sole purpose of manufacturing specified motor vehicles or automotive components, and new or unused plant, machinery, tooling, jigs, dies and moulds, in-plant logistics, testing, design and production IT equipment and supporting software. The duty which may be rebated is calculated as follows: A total of 20 per cent of the value of the productive assets approved by the International Trade Administration Commission for purposes of this rebate provision, but limited to 4 per cent per annum up to 31 December 2014, thereafter a PAA certificate issued for any remaining amount of Productive Asset Allowance value to be valid to 31 December 2015.
2. The International Trade Administration Commission may impose further conditions without prior notice, and the certificate or amended certificate shall be forwarded directly to the Commissioner for retention by him or her.
The “Extent of Rebate” is “Full duty less the duty in Section B of Part 2 of Schedule No.1.”
The notice is accessible at:
https://www.sars.gov.za/wp-content/uploads/Embargo/Tariffs/2021/LSec-CE-TA-2021-044-Sch4P2-production-rebate-credit-certificate-25-June-2021.pdf
Story by: Riaan de Lange