No imported products or articles may be obtained by any registered manufacturer or producers under rebate unless registered with Customs as a rebate user. Registered manufactures or producers must obtain approval from Customs before any goods (e.g. raw material, components or electrical circuit items) may be imported under rebate of duty specified in Schedule 3 or 4.
The applicant and the rebate store must be located in South Africa. The application forms must be submitted to the Customs Office in whose area of control the manufacturing or producing premises or facility is situated. The applicant must comply with the conditions specified in the rebate item(s) listed at the time of his / her application.
Where an International Trade Administration Commission (ITAC) permit is required in terms of the rebate item, the applicant can only be registered as a rebate user if he / she is the holder of such a permit.
Rebate stores that are situated in the same building or on the same floor together with other businesses must be separated from each other.
Bulk storage tanks used must be calibrated and Customs must be able to seal them, if and when necessary.
- Rebate Item 470 03 – External Guide, provides for the interpretation and application of Rebate item 470.03, including the processing of applications by registrants, clearance of goods under rebate and accounting of the imported goods
- SC-CF-55 – Clearance Declaration – External Policy provides for the submission of Customs clearance declarations (CCD) by rebate users in terms of Schedule 3.
Which forms must be completed to register a Rebate user?
Complete the required application form and relevant annexure(s). These are:
- DA 185 – Application form – Registration and licensing of Customs and Excise Clients – External Form
- DA 185.4A3 – Registration Client Type 4A3 – Rebate user – External Form
Send all supporting documents asked for on the application forms to your nearest Customs office. The following additional supporting documents must be presented with the application form:
- The ITAC permit, if required by the rebate item.
- The agreement between the importer or exporter and the manufacturer which must stipulate:
- The terms on which the manufacturing or production will be undertaken;
- The yield; and
- The party who will be responsible for the products manufactured or produced.
- A plan (not necessarily a blueprint) of the premises showing the exact location of the proposed rebate store (e.g. store, vessel, tank and yard).
- A list of plant and machinery.
These are general rebate of duties in Schedule 1 Part 1, 2 and 5 of the tariff. Part 5 applies to fuel levy goods. The tariff specifies the extent of rebate for each product under this schedule. The following are special government initiatives under 4th schedule:
Rebate Item 470.03
The provision of Rebate Item 470.03 provides for a full rebate of Customs duty on imported goods specified in an ITAC permit, i.e. the suspension of Customs duty on goods for use in the manufacture, processing, finishing, equipping or packing of goods exclusively for export. The provision also allows for the clearance of goods which are free of Customs duty to be declared thereunder. The effect of the Rebate Item is that it assists exporters in avoiding the strain imposed on their liquidity by the outlay of capital in respect of Customs and other applicable duties payable on the raw materials or components at the time of importation.
Rebate Item 498.00
Rebate Item 498.00 provides for the suspension of Customs duty and Schedule 1 to the VAT Act provides for an exemption from value-added tax on goods imported under Rebate Item 498.00. Where goods are used in the manufacture of products that are exported, the liability of the CCA Enterprise ceases on proof that the relevant goods were exported. Should manufactured goods be sold into the local market, the suspended Customs duty and other applicable duties on the imported content thereof will become payable. Rebate Item 498.01 relates to the CCA Enterprise and Rebate Item 498.02 relates to the IDZ Operator. In terms of Rebate Item 498.02 the IDZ Operator will be entitled to import under the provision goods for the construction and maintenance of the CCA in the IDZ. You can also refer to IDZs / SEZs.
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