On 18 February 2022, International Trade Administration Commission of South Africa (ITAC) extended an invitation to comment on a request for additional comment on the Ministerial Directive to review Rebate Item 311.18/63.09/01.04 and Rebate Item 460.11/00.00/01.00 to the Customs and Excise Act,1964.
List 13 of the Government Gazette of 22 October 2021 solicited comments from interested parties regarding a directive to review of Rebate Item 311.18/63.09/01.04 and Rebate Item 460.11/00.00/01.00 to the Customs and Excise Act,1964.
In terms of a Review, it should be noted that ITAC may decide to, amongst others, consider withdrawing rebate provisions immediately or follow a phased approach over a period of time, based on information at ITAC’s disposal. Following the preliminary evaluation of the information at ITAC’s disposal, ITAC is considering withdrawing the rebate items concerned and requests comments on this and an appropriate withdrawal period. The relevant Rebate Items are as set out below:
Rebate Item 311.18/63.09/01.04 reads as follows:
“Worn clothing and other worn articles of textile materials containing 35 per cent or more by mass of cotton fibres (excluding brassieres, girdles, corsets, braces, suspenders, garters, jackets, blazers, jerseys, pullovers, cardigans, overcoats, car-coats, raincoats, anoraks, ski-jackets, duffle-coats, mantles, parkas, swimwear, socks and similar clothing articles) at such times, in such quantities and subject to such conditions as the International Trade Administration Commission may allow by specific permit for the manufacture of wiping rags and cleaning cloths.”
Rebate Item 460.11/00.00/01.00 reads as follows:
“Used overcoats, car-coats, raincoats, anoraks, ski-jackets, duffle-coats, mantles, three-quarter coats, greatcoats, hooded caps, trench coats, gabardines, padded waistcoats and parkas (excluding any other clothing articles) classifiable in tariff headings 61.01, 61.02, 62.01, 62.02 and 6309.00.13, in such quantities, at such times and subject to such conditions as the International Trade Administration Commission may allow by specific permit.”
The application was lodged by the Department of Trade, Industry and Competition (dtic) who reasons that the review and withdrawal and/or phase-out of Rebate Items are as follows:
(a) The Ministerial Directive follows concerns that were raised by the Intergovernmental Illicit Economy Trade Task Team about the potential abuse and/or misuse of the aforementioned rebate items, their contribution to illicit trade and the detrimental and negative effect this may have on the domestic clothing and textile industry.
(b) It was further considered that the subject rebate items have not recently been reviewed.
(c) Rebate items have been abused and misused through misdeclaration, under-invoicing or smuggling to allow second-hand clothing or even new clothing to be imported under these Rebate Items.
NOTE: Representations/comments must be provided in the format of a questionnaire obtainable on ITAC’s website at www.itac.org.za by following the links: ‘Services -Tariff investigations – Government Gazette Notices - Other publication notices.’
