ITAC just spoiled your next long weekend because you now need to attend our free webinar on the brand new review of the renewable energy value chain. It covers R59 billion worth of imports, under 82 tariff codes, so if you are anywhere in the renewable energy value chain, attending this webinar is essential.

You should immediately click here to book your spot for our webinar on Friday, 25 April.

Scope of the review

• Consideration of increasing tariffs to the bound rate on 82 tariff codes in the renewable energy value chain “to the extent that there is capability or potential to manufacture them locally in order to improve the overall tariff structure and the effective rate of protection”. Note: This increase is connected not only to current capacity, but also to possible future capacity to produce locally. If implemented, this would raise the duty liability on these products from R371 million to R7.2 billion, based on 2024 imports.
• Creating more rebates for some of the products on the list, “to the extent that there is capability or potential to manufacture them locally in order to improve the overall tariff structure and the effective rate of protection.”, so possibly some of that duty increase will be offset by rebates, but only if you ask nicely.
• The potential discontinuation of the rebate created on solar PV panels. This is a massive shift, given how small local production volumes are. You should read my previous views here on why this is a terrible decision, if it happens. In the last year, R6.3 billion worth of solar panels were imported, of which 55% was imported under rebate of duty. If this rebate is removed, R344 million more would be paid in duties. If this is not strongly opposed (yes you should use us), this rebate will almost certainly be removed.
• ITAC will also look at adding more products for minimum levels of local content, but this can only be done with the DTIC and only once the regulations for the Public Procurement Act have been published for comment and adopted, so not likely much before August.

• The potential relaxation of Import Control Regulations for any critical minerals, or any other product, used as input material in  downstream manufacturing activities in the renewable energy industry, particularly in battery storage technologies, to the extent that this would incentivise domestic manufacturing and investment.

• The potential introduction of export control regulations for any critical minerals, or any other product, used as input material in downstream manufacturing activities in the renewable energy industry, particularly in battery storage technologies, to the extent that this would ensure security of supply and incentivise domestic manufacturing and investment.

We have no idea which import and export control regulations are being considered but we have filed a request for more information from ITAC. We should know more by Friday.

This review is a very big deal indeed, covering R59 billion worth of imports. If you find yourself anywhere in this value chain you need to do three things:

1. Attend our webinar on Friday, 25 April. Click here to book your spot.
2. Tell your friends about what is happening and forward this email to them.
3. Appoint XA to assist you to respond to this review.

We have been doing longer and better than anyone else for over 20 years. If you doubt that, ask yourself who else has has put together this much detailed information in so little time, and is able to organise a free webinar so quickly, in the middle of Easter. Correct. No one.

The deadline to respond is 15 May 2025

Contact us on info@xagta.com to find out more about, well, pretty much anything relating to global trade.

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