ITAC revises drawback procedures

THERE HAVE been changes in the procedures for duty drawbacks, according to the International Trade Administration Commission (ITAC), formerly the Board on Tariffs & Trade.
Those who use the drawback provisions of item 521.00 should note that the ITAC has revised the application procedure and conditions under which drawback permits are granted.
In this, duty drawbacks may be granted in respect of imported goods subsequently used in the manufacture, processing, finishing, equipment or packaging of exports.
But drawbacks are usually only permitted where the applicant can show that there is no manufacturer within the SA Customs Union (SACU) “capable of supplying the relevant products in sufficient quantity, or at a suitable quality, specification or a price that is competitive with the landed price excluding duty”.
The commission also warned that manufacturers using the duty drawback procedure should be clearly aware of where they stand before making use of this possible benefit.
It has suggested that exporters who wish to apply for drawback permits should do so before concluding any agreements whose viability may be dependent on the granting of drawbacks.