It is only partly true that the International Trade Administration Commission (Itac) “issues scores of rebates”, as stated by Itac chief commissioner Ayabonga Cawe.
Responding to Cawe’s article in a leading newspaper, Donald MacKay, who heads up XA Global Trade Advisors, argues that “there are two instruments created to incentivise adding value to imports, so that more complex products can be exported.
“Both of these instruments require Itac to issue a permit before the benefit can be realised, and here is where a problem arises.
“Starting a few years ago, Itac started refusing permits in certain sectors, such as chicken and steel, if the product was available locally. This is problematic as both instruments assume there is local production (because of the duties)".
- Read Donald MacKay's column here: "The problematic change in how customs rebates are used".
