On 25 June 2021, the South African Revenue Service (SARS) announced an amendment to Notes 5 and 8 to Chapter 98 in Part 1 of Schedule No.1 to the Customs and Excise Act, 1964 in order to include reference of new Rebate Item 307.04, to implement APDP Phase II.
The reasoning is contained in the International Trade Administration Commission of South Africa (ITAC) Minutes M10/2021, and is effective from 01 July 2021.
Notice
By the substitution of Note(s) 5 and 8 in Chapter 98 of Section XXII to Part 1 of Schedule No. 1 with the following:
5.(a) Original equipment components for motor vehicles enumerated under heading 98.01 shall not include automotive components of which -
(i) the floor panels, body sides or roof panels are permanently attached to each other (except in the case of cabs for road tractors for semi-trailers of a vehicle mass exceeding 1 600 kg, for motor vehicles for the transport of goods of a vehicle mass exceeding 2 000 kg and a G.V.M. exceeding 3 500 kg and for chassis fitted with cabs of a mass exceeding 1 600 kg and a G.V.M. exceeding 3 500 kg in which case the cabs may be assembled and trimmed);
(ii) the engine and transmission assemblies, axles, radiators, suspension components, steering mechanisms, braking or electrical equipment or instrumentation are fitted to such floor pans or chassis frames; and
(iii) the bodies/cabs are fitted to floor pans or chassis frames (except in the case of vehicles of a mono-built construction of a vehicle mass exceeding 2 000 kg).
(b) Original equipment components for specified motor vehicles as defined in rebate item 317.03 or 317.04 destined for assembly outside the borders of the Republic, must be in the form of kits that have untrimmed painted bodies with no parts assembled to the body.
8. For the purposes of this Chapter "automotive components" means a new article which can be identified as being suitable for use in the manufacture of motor vehicles manufactured under rebate items 317.03 or 317.04 and 317.07 or original equipment components, including carpet cut to floor pan shape, leather seat covers cut to size, unfinished articles, including blanks and rough castings, having the essential character of automotive components.
The notice is accessible at:
https://www.sars.gov.za/wp-content/uploads/Embargo/Tariffs/2021/LSec-CE…
Story by: Riaan de Lange
