The International Trade Administration Commission of South Africa (Itac) on 30 January 2015 announced the proposed creation of two Rebate Item (rebate provisions), which follow:
Rebate Item 320.01/5407.73 - Woven fabrics, containing 85% or more by mass of synthetic filaments of yarns of different colours in such quantities, at such times and subject to such conditions as Itac may allow by specific permit, for use in the manufacture of upholstered furniture classifiable in tariff heading 94.01. The extent of the rebate is “full duty”.
Rebate Item 320.01/5515.1 - Woven fabrics of polyester staple fibres, (excluding that mixed mainly or solely with wool or fine animal hair) , in such quantities, at such times and subject to such conditions as Itac may allow by specific permit, for use in the manufacture of upholstered furniture classifiable in tariff heading 94.01. The extent of the rebate is “full duty”.
The application was lodged by Coricraft Group (Pty) Ltd who offered the following reasons for the application:
(i) Fabric supply in South Africa is relatively limited in the offerings in respect of trends and product newness compared to offerings available from the rest of the world. A key restriction on the ability of local suppliers to meet Coricraft's fabric requirements is the sourcing of filament/fibre which has to be imported. As a result of importation, the lead time of supply for local suppliers is significantly longer than that of the overseas supplier's timeline.
(ii) The local industry lacks dyeing capacity and capability.
(iii) Local suppliers fail to meet the "handle and performance standards" due to lack of finishing techniques.
(iv) Local textile manufacturers derive most volumes of their fabric use from clothing, work wear and other industrial wear manufacturing. As such, Coricraft's fabric requirements cannot sustain these businesses and supporting these local suppliers has in the past placed Coricraft's business in jeopardy when an existing supply line was terminated without adequate warning
(v) Representation should be submitted to the above address within four weeks of the date of this notice.
Comment is due by 27 February 2015.