Update on the rebate for articles under 412.11/00.00/01.00
The outbreak of COVID-19 worldwide saw confirmed infections soar upwards into the hundreds of thousands. In response our President announced on the evening on 23rd March that we would enter a countrywide lockdown. This saw a spike in demand for PPE to combat the virus; such as masks, gloves, disinfection products, etc.
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This in conjunction with the shortage of PPE available prompted the International Trade Administration Commission of South Africa, ITAC, to allow applications for rebate certificates under item 412.11/00.00/01.00 of the Fourth Schedule to the Customs and Excise Act, 91 of 1964.
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This rebate allowed qualifying products to be imported for “the relief of distress of persons” to help with the shortage of PPE products. ITAC imposed certain conditions when issuing rebate certificates, including that the certificate would be valid for the clearance of eligible imported products until 31 May 2020.
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As per the government gazette:
“On a policy level, customs duties serve to assist domestic industries experiencing import competition. The domestic production of various items, in particular face masks and hand sanitiser, means that extending the regime for duty-free importation of these products would undermine the very purpose for which ITAC granted tariff protection with adverse consequences for local manufacturing in affected sectors, especially in light of the current economic conditions in South Africa.”
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In light of this ITAC has decided not to extend this deadline and no new certificates will be issued after 31st May 2020. Any portion of the quota allocated in the certificates which remains unused after the 31st May 2020 will also be forfeited.