Itac on 26 July announced the creation of a rebate item on “Optic fibre cables, classifiable in tariff subheading 8544.70, for use in international submarine optic fibre cable infrastructure, at such times and in such quantities and subject to such conditions as Itac may allow by specific permit, provided that optic fibre cables are not available in the Sacu market; and electrical apparatus for making connections to or in electrical circuits, for a voltage not exceeding 1000 volts, other, classifiable in tariff subheading 8536.90.90, for use in international submarine optic fibre cable infrastructure, at such times and in such quantities and subject to such conditions as Itac may allow by specific permit, provided that optic fibre cables are not available in the Sacu market”.
The application was lodged by Open Serve (a division of Telkom SA SOC Ltd) who reasoned that there were no local manufacturers of optic fibre cables and electrical apparatus for use in the submarine optic fibre cable infrastructure; the subject products are not used in the domestic terrestrial market; and the applicable customs duty on the subject products has an unnecessary cost-raising effect in the maintenance and repair of international submarine optic fibre cable infrastructure.
Story by: Riaan de Lange