ED RICHARDSON AUTOMOTIVE COMPANIES investing in South Africa’s Industrial Development Zones (IDZs) could benefit from the Motor Industry Development Plan incentives. According to Automotive Industry Development Centre logistics manager, Eddie Kitching, an agreement between South African Revenue Service Customs and the Department of Trade and Industry to review “blocking legislation” could set a precedent for the country’s four IDZs. Automotive suppliers within the East London IDZ are currently excluded from benefits offered by the MIDP, which rewards automotive manufacturers who use local content with rebates, because of parallel tax and customs arrangements operational within the Customs Control Area of the IDZ. The absence of MIDP benefits within the EL IDZ, however, says Kitching, “is a major obstacle to the growth of government’s master plan for IDZs. “Discussion and a resolve to move towards making legislative changes to recognise the goods produced within the IDZ’s Customs Control Area as local goods show real resolve from government to attract investment into the IDZ and achieve the economic objectives of the plan,’’ he said. “The parties have committed themselves to exploring all the options to make changes so that automotive companies operating within the IDZ may benefit from the MIDP."
