On 25 June 2021, the South African Revenue Service (SARS) announced the amendment of Notes to Refund Item 537.00, to include a new Rebate Item 317.04 and make provision for production rebate certificate (PRC) as well as insertion of new refund items 537.04, to give effect to Automotive Production and Development Programme APDP Phase II in accordance with Part 3 of Schedule No.5 to the Customs and Excise Act, 1964.
The reasoning is contained in the International Trade Administration Commission of South Africa (ITAC) Minutes M10/2021, and is effective from 01 July 2021.
The tariff amendments:
Refund Item 536.00 00.00 01.00
Automotive components, as defined in Note 8 to Chapter 98, on which duty has been paid and which have been supplied to a motor vehicle manufacturer for use as original equipment components, as defined in Note 3 to Chapter 98, in the manufacture of specified motor vehicles as defined in rebate item 317.04 or which have been incorporated in original equipment components supplied to motor vehicle manufacturers provided:
(i) such component manufacturer or supplier can produce proof by means of copies of the bills of materials reflecting the actual number of imported automotive components used in the manufacture of a specific original equipment component supplied;
(ii) proof of the quantity of each original equipment component supplied to a motor vehicle manufacturer substantiated by a statement from the motor vehicle manufacturer to whom such components were supplied with specific reference to the part number, description and quantity received, is produced;
(iii) the statement by the motor vehicle manufacturer is certified by a customs and excise officer; and
(iv) the imported component value has been declared on a Form C2 and it can be produced on request.
Note:
1. For the purposes of this item unless the context indicated otherwise, any expression to which a meaning has been assigned in item 317.04 has the meaning so assigned.
The “Extent of Refund” is “Full duty”.
Refund Item 537.04
MOTOR VEHICLES AS PROVIDED FOR UNDER THE APDP II NOTES:
1.For the purposes of item 537.04 -
(a) unless the context indicates otherwise, any expression to which a meaning has been assigned in rebate item 317.04 has the meaning so assigned.
(b) the amount of a Production Rebate Certificate may be utilised to claim a refund of duty on imported specified motor vehicles as defined in rebate item 317.04.
2. These items are only applicable to the ordinary duty specified in Part 1 of Schedule No. 1
537.04 8701.20 01.06 66 Road tractors of semi-trailers
537.04 87.02 01.04 47 Motor vehicles for the transport of ten or more persons, including the driver
537.04 87.03 01.04 43 Motor cars (including station wagons) of heading 87.03
537.04 87.04 01.04 46 Motor vehicles for the transport of goods of heading 87.04 (excluding motor vehicles of subheading 8704.10)
The “Extent of Refund” is “Not exceeding the duties calculated in terms of the Notes to this rebate item”.
By the insertion of:
537.04 87.06 01.04 42 Chassis fitted with engines of headings 87.06 (excluding those for motor vehicles of subheading 8704.10)
The “Extent of Refund” is “Not exceeding the duties calculated in terms of the Notes to this rebate item”.
The substitution:
536.00 00.00 04.00
Automotive components, as defined in Note 8 to Chapter 98, on which duty has been paid and which have been supplied to a motor vehicle manufacturer for use as original equipment components, as defined in Note 3 to Chapter 98, in the manufacture of heavy vehicles as defined in rebate item 317.07 or which have been incorporated in original equipment components supplied to motor vehicle manufacturers provided:
(i) such component manufacturer or supplier can produce proof by means of copies of the bills of materials reflecting the actual number of imported automotive components used in the manufacture of a specific original equipment component supplied;
(ii) proof of the quantity of each original equipment component supplied to a motor vehicle manufacturer substantiated by a statement from the motor vehicle manufacturer to whom such components were supplied with specific reference to the part number, description and quantity received, is produced;
(iii) the statement by the motor vehicle manufacturer is certified by a customs and excise officer; and
(iv) the imported component value has been declared on a Form C1 for APDP I and Form C2 for APDP II and it can be produced on request.
Note:
1. For the purposes of this item unless the context is indicated otherwise, any expression to which a meaning has been assigned in items 317.03 for APDP I and item 317.04 for APDP II has the meaning so assigned.
537.00 MOTOR VEHICLES
537.03
MOTOR VEHICLES AS PROVIDED FOR UNDER THE APDP I
NOTES:
1.(a) For the purposes of item 537.03, unless the context indicates otherwise, any expression to which a meaning has been assigned in item 317.03 has the meaning so assigned.
(b) For the purposes of refund items 537.03 the value of a PRCC shall be reduced by 20 per cent if used to claim a refund of duty on imported specified motor vehicles, as defined in rebate item 317.03. No adjustment shall, however, be made if the PRCC is in respect of specified motor vehicles produced fitted with engines and gearboxes
The notice is accessible at:
https://www.sars.gov.za/wp-content/uploads/Embargo/Tariffs/2021/LSec-CE-TA-2021-045-Sch5P3-to-amend-Notes-to-item-537-00-25-June-2021.pdf
Story by: Riaan de Lange