On 19 June 2024, the International Trade Administration Commission of South Africa (ITAC) extended an invitation for comment on its 22-page “Draft Regulations for the Amendment of the Automotive Production and Development Programme Phase 2 Legislative Framework for the Inclusion of Electric Vehicles and Associated Components”. Comment is due by 17 July 2024.
The draft Amended Automotive Production and Development Programme (APDP) 2 Regulations should be read with Chapter 98, Rebate Items 317.04 and 317.07 and 460.17 which will be published on the South African Revenue Service (SARS) website [See: Application to Include Electric Vehicles and Associated Components under APDP 2: Comment due] and the information documents which are published on the ITAC website.
The reasons for the application are
- Following the recommendations of the Electric Vehicle (EV) White Paper, the current APDP2 provides a good framework for supporting investments, production output, and exports of automotive vehicles and components, but this requires that the legislative framework should be amended to support the transition of the domestic industry production from Internal Combustion Engines (ICE) vehicle to EVs.
- The Trade, Industry and Competition minister requested ITAC to effect amendments to the APDP2 legislative framework in line with the recommendations of the EV White Paper.
Additionally, administrative amendments have been proposed for improved efficiencies of administering the programme.