The nuts and bolts of rebate item 470.03

Rebate item 470.03, which relates to duty free imports of goods used in the manufacturing and processing of goods destined for the export market, is nothing new – but Itac believes it’s worth revisiting to ensure that exporters are aware of the details. Since access to raw materials and other inputs at world competitive prices is essential for stimulating exports, provisions such as rebate item 470.03 and drawback item 521.00 were introduced in terms of the Customs and Excise Act, 1964 (Act 91 of 1964), to facilitate imports of raw materials and components at competitive prices for incorporation into domestically produced products for the export market. Drawback item 521.00 is similar to rebate item 470.03 except that the duty is paid upon importation of the materials and components and later refunded by the South African Revenue Service (Sars) when the export transaction has taken place. “The purpose of the 470.03 rebate item is to assist exporters in avoiding the strain imposed on their liquidity by the outlay of capital for customs and other applicable duties payable on the raw materials or components at the time of importation,” says Itac chief commissioner, Siyabulela Tsengiwe. A prospective participant in the scheme must first register at the nearest Sars Customs Office and contact the local Customs and Excise Controller for details of procedures and requirements to register as a user of the rebate. Application forms are available on Itac’s website www.itac.org.za.