On 05 May 2023, the South African Revenue Service (SARS) announced the insertion of Rebate Item 460.16/8415.10.10/01.08 in Part 2 to Schedule No.4 to the Customs and Excise Act, 1964 “General Rebates of Customs Duties, Fuel Levy and Environmental Levy: Temporary Rebates of Customs Duties”, in order to provide for a rebate of the duty payable in Schedule No.1 Part 1 to the Act, 1964 “Ordinary Customs Duty” for air-conditioning machines having a rated cooling capacity not exceeding 8,8 kilowatts, classifiable in tariff subheading 8415.10.10.
Rebate Item 460.16/8415.10.10/01.08 “Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated, of a kind designed to be fixed to a window, wall, ceiling or floor, self-contained or "split-systems" used for buildings, compressor operated, having a rated cooling capacity not exceeding 8,8 kW, at such times, in such quantities and subject to such conditions as the International Trade Administration Commission may allow by specific permit, provided the products are not available in the Southern African Customs Union (SACU) market.”
The extent of the rebate is the full duty in Part 1 of Schedule No.1, to the Act, 1964.
The reasoning is contained in the International Trade Administration Commission of South Africa (ITAC) Report 681.