Itac on 20 November 2015 published an application for the proposed rebate of customs duty on woven fabrics of polyester staple fibres, containing 60% or more by mass of such fibres but not exceeding 70%, mixed mainly or solely with cotton, with a dtex of 115 but not exceeding 145, of a mass exceeding 100 g/m² but not exceeding 119 g/m², dyed, plain weave, classifiable in tariff subheading 5513.21 in such quantities, at such times and subject to such conditions as Itac may allow by specific permit for the manufacture of shirts, classifiable in tariff headings 62.05 and 62.06, on which comment is due by 18 December 2015.
A draft of the guidelines, rules and conditions pertaining to the proposed rebate provision is available on the Itac website, www.itac.org.za, for download.
A draft of the guidelines, rules and conditions pertaining to the proposed rebate provision is available on the Itac website, www.itac.org.za, for comment.
The application was lodged by Pep Clothing, division of Pepkor Retail (Pty) Ltd who reasoned that (i) There were no local manufacturers of the products in question within the Sacu region known to manufacture the subject product at the required technical specification, laboratory performance, volume and price; (ii) Should the creation of a rebate provision be supported, Pep Clothing would be well positioned to compete against similar school shirt products currently being imported, thereby providing the added benefit of increasing the absorption of factory overheads and further reducing manufacturing costs; and (iii) Pep Clothing was under threat of losing more market-share to imported finished garments unless relief in the form of duty rebate on the shirting fabric was offered. The additional cost and the subsequent loss of sales would have a significant impact on the business as a whole as well as the downstream impact on employees and their dependents, bearing in mind that a clothing industry employee supported at least 10 dependents.