Dear Valued Client,
Due to the strain that the COVID-19 lockdown has placed on people, business and the economy, ITAC (International Trade Administration Commission) along with SARS (South African Revenue Services) have created a process for the full rebate of duties on critical/essential goods, and a VAT exemption on certain critical supplies under rebate item: 412.11.( item prescribed in schedule no 4 of the customs act which exonerates one from the payment of duty and VAT)
The ability to clear essential and critical goods under rebate item: 412.11, allows companies to better manage/control their “cashflow”, during these extremely difficult times.
There are a number of processes that must take place prior to applying for importation under rebate item: 412.11, these are as follows:
• Company must be registered as an Importer with SARS Customs
• Company must be registered in terms of the Companies Act No. 71 of 2008, also registered as an approved operator under the National Disaster period with CIPC (Companies and Intellectual Property Commission)
• Company must be registered for VAT, if the value of taxable supplies exceeds or is likely to exceed R 1 million in 12 consecutive month period. This is done on a VAT 101 Application form.
Once the above mentioned has been completed and approved, then the application under rebate item 412.11 can proceed. The procedure to follow, is as follows:
• Obtain application form on the ITAC website: http://www.itac.org.za/pages/about-itac/covid-19-news-and-regulat (sample of affidavit included)
• Application form with supporting documentation must be submitted electronically to ITAC as follows:
Goods classified under Chapters: 1 to 68:
• Mr. Christopher Sako – email@example.com
• Ms. Khosi Mzinjana – firstname.lastname@example.org
Goods classified under Chapters: 69 to 96:
• Ms. Lufuno Maliaga – email@example.com
Chapters prescribed above are under which your goods are classified eg mask would be classified under 6307.90 hence would fall between chapters 1 to 68.
Medical Equipment would be classified under 9018 hence falling between chapters 69 to 96.
• Röhlig-Grindrod’s tariff consultants would gladly assist you when called upon.
ITAC will try to process all applications within 3 to 5 working days, however, due to the lockdown, these timeframes may not be met. Upon approval of the company’s application, ITAC will notify the company via email. ITAC will also send confirmation of the approval to SARS directly.
Please take note that during this whole process Röhlig-Grindrod would like to assist our clients, to make the application process as seamless as possible. We urge you to make use of our expertise and knowledge.