On 20 January 2023, the South African Revenue Service (SARS) announced an amendment to Part 1 of Schedule No.3 of the Customs and Excise Act, 1964 (“Industrial Rebates of Customs Duties: Goods Used in the Manufacture of Other Goods”) by the insertion of Rebate Item 306.04/3206.11/01.06 in order to provide for a rebate facility on titanium dioxide, classifiable in tariff subheading 3206.11 for use in the manufacture of paints, varnishes as well as prepared driers classifiable in tariff headings 32.08, 32.09, 32.10 and 32.11, as well as the deletion of the said Rebate item with effect from 20 July 2025.
Rebate Item 306.04/3206.11/01.06, the extent of the rebate which is full duty, reads “Titanium dioxide, for use in the manufacture of paints, varnishes and prepared driers of tariff headings 32.08, 32.09, 32.10 and 32.11, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided that the product is not available in the SACU market.”
The reasoning for the insertion and the deletion of the Rebate Item is contained in the International Trade Administration Commission of South Africa (ITAC) report 633.
