Customs

Vintage Motor Vehicle Rebate Provision – Comment due

On 17 February the International Trade Administration Commission of South Africa (Itac) published an application, its first for 2017, for the creation of a rebate provision (Rebate Item) for “Motor cars and other motor vehicles principally designed for the transport of persons (excluding commercial vehicles or buses) including station wagons and racing cars classifiable under tariff subheading 87.03, which were manufactured 40 years prior to the date of importation or such motor cars of any age that are determined to be an International collector’s vehicle by the International Trade Administration Commission (Itac) and subject to the issuing of an Itac import permit (and subject to import control conditions) authorising the importation of the particular vehicle, under such conditions as Itac may allow by specific rebate permit”, on which comment is due by 17 March 2017.

The application was lodged by Franschhoek Motor Museum (Pty) Ltd which provided the following reasoning for its application:

I. The company conducts its museum on a global platform whereby it promotes to and attracts visitors from around the world;

II. The company actively promotes its vintage and/or internationally collectible motor vehicles to the general public by restoring, maintaining and putting them on display and providing detailed technical and historical information on them and thereby promoting cultural awareness and creation of employment;

III. The current customs duties on the subject product negatively impact the attempts to collect, safeguard and promote vintage and/or internationally collectible motor vehicles of significant historical and cultural value into South Africa as these duties add a substantial additional cost to the vehicle, decreasing the Museum’s buying power and making it uncompetitive; and

IV. The motor vehicles are not imported for general automotive use and do not compete with the locally manufactured vehicles.

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