Services
Sentiment towards South Africa has been deterio-rating at an increasing rate over the last couple of years, further adding to South Africa's list of economic problems, less foreign investments into South Africa leads to less growth and development, and the continuing cycle of stagnating economic growth.
Government has implemented various stimuli in order to negate these effects. This has resulted in local and foreign investment in the manufacturing sectors. There is a drive to increase the local content of items manufactured, which is boosted by programmes offered by the DTI.
Here are highlights of a few such programs:
AUTOMOTIVE PRODUCTION DEPVELOPMENT PROGRAMME (APDP)
PRODUCTION INCENTIVE (PI)
The PI is an incentive available to final manufactur-ers and will be calculated at the point of sale based on value added on qualifying motor vehicles and components manufactured in South Africa. The PI will basically be calculated on the tax invoice of the final manufacturer less the value of imports and non qualifying local materials used by itself or by other manufacturers in the manufacturing chain.
Eligible Enterprises
• Light motor vehicle manufacturers that have achieved, or can demonstrate that they will achieve, a minimum of 50 000 annual units of production per plant within a period of three years;
• Component or tooling component manufacturers that are part of the Original Equipment Manufacturer (OEM) supply chain and will achieve at least 25% of a total entity turnover or R10 million by the end of the first full year of commercial production as part of a light motor vehicle manufacturer supply chain, locally and/or internationally.
Benefits
• Production Rebate Credit Certificates (PRCCs) are issued on successful claims. These certificates are used against automotive import duty pools. If of no use to the claimant, then an additional brokerage service is offered where the PRCCs can be sold onto importers.
Automotive Investment Scheme (AIS)
The AIS is designed to grow and develop the automotive sector through investment in new and/or replacement models and components that will increase plant production volumes, sustain employment
and/or strengthen the automotive value chain.
Eligible Enterprises
• Light motor vehicle manufacturers that have achieved, or can demonstrate that they will achieve, a minimum of 50 000 annual units of production per plant within a period of three years; or
• Component or deemed component manufacturers
that are part of the Original Equipment Manufacturer (OEM) supply chain and will achieve at least 25% of a total entity turnover or R10 million by the end of the first full year of commercial production as part of a light motor vehicle manufacturer supply chain, locally and/or internationally.
Benefits
• The AIS provides for a non-taxable cash grant of 25% of the value of qualifying investment in productive assets, as approved by the dti.
• An additional non-taxable cash grant of 5% to 10% may be made available for projects that
significantly contribute to the development of the automotive sector.
SARS CUSTOMS DUTY REFUNDS & DRAWBACKS
Rebates and drawbacks of customs duties paid on imported goods within Schedule 4 and 5, provided specific conditions are met and that the claims are lodged within a specified time period. It is very important to be registered for drawbacks and have the correct permit issued by ITAC. Simplification of eligible scenarios are as follows:
- Customs duty paid on Imported goods used in the local manufacture of products, exported outside of SADC.
- Customs duty paid on Imported goods exported outside of SADC in the same state.
- Customs duty paid on Imported goods solely for the purpose of export outside of SADC.
- Customs duty paid on Imported automotive components supplied to an automotive OEM locally.
Additional Services
We also offer training and completion of administrative requirements such as APDP Standard material declarations (SMD), C1s and Ad-valorem calculation and submissions on behalf of all tier suppliers.