On 05 February the South African Revenue Service (SARS) informed stakeholders of the insertion of Rebate Item 311.40/00.00/01.04, in Part 1 of Schedule No.3 to the Customs and Excise Act, 1964, “Industrial Rebates of Customs Duties - Goods Used in the Manufacture of Other Goods” in order to create a rebate facility for yarns and textiles for use in the manufacture of apparel. The extent of the rebate of the duty is full duty. The International Trade Administration Commission of South Africa (ITAC) reasoning is contained in its Report No.641.
Rebate Item 311.40/00.00/01.04, reads “Textile yarns and textile fabrics, classifiable in Section XI of Part 1 to Schedule No. 1 and approved by the International Trade Administration Commission (ITAC) through a Notice in the Government Gazette as qualifying yarns and fabrics that may be imported under this rebate item for the manufacture of apparel and clothing accessories classifiable in Chapters 61 and 62, in such quantities, at such times and subject to such conditions as ITAC may allow by specific permit, provided that -
(i) ITAC or equivalent authority in SACU member states, is satisfied that the apparel and clothing accessories manufactured in terms of this item are supplied to and sold by retailers in the country in which the rebate permit will be issued;
(ii) as evidenced in support of (i) above, the application for a permit must be supported by an order/orders from retailers in the country where the application is made; and
(iii) the yarns and fabrics are not specifically covered by another rebate provision in Schedule No. 3 for the same industry and purpose.”
The Notice is accessible at:
Story by: Riaan de Lange