Industrial Development Zone (IDZ)

South Africa’s broad economic policy includes schemes designed to encourage and promote international competitiveness in the country’s manufacturing sector. This is set out in government’s Economic Programme of Action, where Industrial Development Zones (IDZs) are created in order to encourage increased levels of foreign direct investment in the economy. This will be achieved primarily through the giving of incentives to attract foreign and local investment within these zones in order to boost the country’s economic attractiveness.
 

The South African Industrial Development Zone concept

An IDZ is a purpose built industrial estate linked to an international air or sea port, which might contain one or multiple Customs Controlled Areas (CCA) tailored for manufacturing and storage of goods to boost beneficiation, investment, economic growth and, most importantly, the development of skills and employment in these regions.
The following SARS offerings are available to CCA enterprises:
 
  • Relief from customs duties at time of importation into a CCA:
    • any goods for storage
    • raw material for manufacture
    • machinery used in the manufacturing process
  • Simplified customs procedures:
    • Clearance of goods – importation, exportation and transit
    • Application for designation, licensing and registration
    • Release of cargo
    • Consideration of stage consignments if the requirements are met
    • Consideration of release under embargo
    • Lesser amounts for security – licensing, registration and movement of bonded goods
  • Fiscal incentives on goods when:
    • goods are imported for storage
    • raw material is imported for manufacture
    • machinery is imported for used in the manufacturing process; or
    • any material is imported for use in the construction of the CCA infrastructure
    • goods are exported from the CCA to a foreign country
    • any services are rendered to a custom control area enterprise  CCAE
  • Subsidised infrastructure :
    • No import duties are payable on goods imported for use in the construction and maintenance of the infrastructure of a CCA in an IDZ (rebate item 498.02).
    • No Value-Added Tax shall be payable when:
      • Goods are imported for use in the construction and maintenance of the infrastructure of a customs controlled area
      • Land is supplied to a CCAE in the CCA for sale, letting or any other agreement
      • Electricity or water is supplied to the IDZ Operator or CCA Enterprise located in the CCA.

How to Control the Movement of Goods?

In addition to the Customs client number, a CCA number [one  per CCA] will be allocated by the system. The number will be of paramount importance when goods are moved between warehouses/rebate users in the same or other CCAs.
For more on registration of an IDZ, click here
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CCA Gate Controls

Last Updated: 03/11/2014 11:06 AM     print this page
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 Top FAQs

IDZ - What is a IDZ SARS Office?
An IDZ SARS Office means a South African Revenue Service Customs office located in the IDZ operating under the Controller/Branch Manager for the area within which the IDZ is designated which has been established by SARS on premises provided by an IDZ oper

IDZ - What is a IDZ (Industrial Development Zone) operator?
An IDZ Operator is the holder of a valid IDZ operator permit granted by the Minister of Trade and Industry who will be entitled to register with SARS Customs.

IDZ - What is a Customs Control Area (CCA)?
A Customs Controlled Area means an an area within an Industrial Development Zone (IDZ), designated by the Commissioner in concurrence with the Director-General

IDZ - What does the acronym IDZ stand for?
Industrial Development Zone.

IDZ - What does the acronym CCA stand for?
Common Customs Area in an IDZ.