Special Economic Zones In a Government Gazette dated 23 January 2012 the Minister of Trade Industry, Dr Rob Davies, published for public comment the “Policy on the Development of Special Economic Zones in South Africa - 2012” and the “Special Economic Zones Bill, 2011”. The Policy document consist of four Sections, namely (i) Introduction, (ii) Key Elements of the Special Economic Zones Policy, (iii) Implementation of the Special Economic Zones Programme; and (iv) Conclusion. According to the “Executive Summary” of the document a Special Economic Zone (SEZ) is defined as “a geographically designated area of a country set aside for specifically targeted economic activities, which are then supported through special arrangements (which may include laws) and support systems to promote industrial development”. The SEZ programme is a tool that is used by many economies to promote trade, economic growth and industrialisation. It further states: “In an effort to reposition itself in the world economy, the South African government established the Industrial Development Programme (IDZ) in 2000. The programme’s main focus was to attract foreign direct investment (FDI) and export of value-added commodities. The main limitation of the programme was that the IDZs could only be designated adjacent to a sea port or international airport, and that excluded other regions in the country which had industrial potential but did not meet the IDZ criteria.” The Bill consists of seven Chapters, namely (i) Interpretation, Objectives and Application, (ii) Special Economic Zones Board, (iii) Special Economic Zones Policy and Strategy, (iv) Financing and Incentives, (v) Designation of Special Economic Zones, (vi) Special Economic Zone Operator Permit, and (vii) General Provisions. Comment is due by 22 March 2012. Television Aerials Application The increase in the “General” rate of customs duty on other aerials for reception apparatus for television, whether or not also capable of receiving radio-broadcast, (excluding indoor “set-top” aerials with a permanently affixed base for placing on top of television set or another flat surface), from a rate of customs duty of 20% ad valorem through the creation of an additional 8-digit tariff subheading. The application was lodged by Ellies Holdings (Pty) Ltd who stated the reason for the application was to develop the aerial industry by exploiting the opportunity presented by the Government’s decision to implement the Broadcasting Digital Migration Programme. Comment is due by 24 February 2012. Hydraulic Brake Fluids Application In last week’s column we alluded to the fact that a correction notice would appear in the Government Gazette. On 27 January 2012 the correction notice appeared in respect of the proposed decrease in the rate of customs duty on hydraulic brake fluids, not containing or containing less than 70% by mass of petroleum oils or oils obtained from bituminous minerals, from 10% ad valorem to free of customs duty. The application was lodged by the South African Brake Fluid and Coolants (Pty) Ltd t/a Sabac, who stated that the hydraulic brake fluids were not manufactured in the Southern African Customs Union (Sacu) and that the current rate of customs duty had cost-raising implications. (It will be interesting to see, if the reduction of the rate of customs duty is realised, to what extent the price of hydraulic brake fluids will reduce.) Comment is due by 24 February 2012.
