Solar Panels: A (very) long-awaited decision
After investigating for 5 years and 3 months (1 918 days), ITAC & DTIC have finally released its findings in Report 613, leading to a 10% increase in customs duties for solar panels coming into South Africa. This investigation holds the record for the longest time taken to complete an investigation since ITAC was created in 2003.
The general rate of customs duty on crystalline silicone photovoltaic modules or solar panels has been increased from free to 10%. This adjustment, under tariff subheading 8541.43, is no doubt related to the steep increase in solar panel imports observed in the last year. It aims to support local manufacturing and ensure a more competitive market for domestic producers.
At the same time a temporary rebate was created so that if you can’t buy your solar panels from the local producers you can get duty relief. The rules for the rebate have not yet been published, so we’re not sure how onerous they will be.
This decision has taken time, but at least now we can power ahead with clarity.
Air Conditioning Machines: New rebate provisions finally cooling off the industry
Much like the breeze from a well-functioning air conditioner, this investigation has taken its time to cool off. After 1 715 days, ITAC Report 627 has prompted an amendment to the duty liability on air conditioning machines identifiable for use in heavy motor vehicles.
This involves a new rebate, rebate item 316.01/8415.20/01.06. The new provision offers a full duty rebate for the manufacturing of air conditioning machines in heavy motor vehicles and it is expected to stimulate the market for manufacturers and purchasers alike.
For those in the air conditioning sector, the new rebate provision offers an opportunity to reduce costs and increase the competitiveness of locally manufactured products for heavy motor vehicles.
It’s important for industry players to stay updated with these changes to take advantage of the new provisions.