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International Trade Administration Act, 2002 (Act No. 71 of 2002)

Notices

Guidelines, Rules and Conditions Pertaining to Certificates Issued under Paragraph (a) of Rebate Item 412.11/00.00/01.00 for Goods Imported for the Relief of Distress of Persons in cases of Famine or other National Disaster

5. Pre-Conditions

 

5.1 Separate from this application form, and to ensure compliance with paragraphs 1.4 and 4.4(a) above, an applicant must, prior to its submission of an application form to ITAC, demonstrate to the satisfaction of the dtic through the provision of sufficient documentary evidence and an affidavit from its principal executive officer or managing director—
(a) that it is a domestic manufacturer of the products to be imported (i.e. the products at issue in its application) and has been directly affected by the unrest in KwaZulu Natal and Gauteng, which occurred in or around the week of 11 July 2021, in that one or more of its manufacturing facilities were destroyed or materially damaged by persons taking part in the civil unrest;
(b) that the manufacturing processes in the applicant were disrupted to such an extent that its domestic manufacturing output ceased or will be substantially reduced for a significant period of time, resulting in an unforeseen shortfall in the volume of products that it had planned to supply from the manufacturing facility or facilities that were destroyed or materially damaged, as set out in (a) above – in this regard detailed documentary evidence must be provided of the specifications and volume of the Shortfall Products manufactured on a month-to-month basis for the 12 months before the damage to the manufacturing facility or facilities and its price lists applicable to those products prior to the civil unrest;
(c) that the impact on the applicant's manufacturing processes can have or had a material adverse effect on employment in the applicant and how importation of the product/s normally manufactured by the applicant under this rebate will affect employment in the applicant – in this regard, the applicant needs to provide an undertaking that it has not and will not retrench any employees owing to the consequences of the civil unrest;
(d) that the same products as the product/s that stand to be imported by the applicant is/are not available in the domestic market, in the same quantities that the applicant was able to produce periodically prior to the civil unrest, from another domestic manufacturer unaffected by the civil unrest;
(e) that the applicant plans to bring its domestic manufacturing processes back to full capacity in the short to medium term – in this regard the applicant must provide a detailed project plan including without being limited to the projected timeline and capital expenditure to be incurred in the restoration process;
(f) that orders have been received by the applicant for, or the applicant offered for sale on the domestic market, product/s of the same model and/or type as the Shortfall Products;
(g) that the applicant is not able to fulfil orders from its existing stock;
(h) that the prices that it intends to apply on the sale of the products will not be an excessive price to the detriment of its customers and consumers or predatory prices, within the definition of those terms in the Competition Act No 89 of 1998 ("the Act"), regardless of whether the applicant is a dominant firm in terms of the Act;
(i) that the volume of the imported products to which the rebate applies will not exceed the average levels of production of the applicant for the Shortfall Goods or similar goods in the 12 months preceding the damage to the manufacturing facility or facilities – in this regard the applicant must provide (i) audited figures of the volume of the Shortfall Product/s (or similar goods) manufactured on a month-to-month basis for the 12 months preceding the damage to its manufacturing facility or facilities, and (ii) projections of the volumes of goods the applicant foresee to import under the rebate for the period during which it will bring its manufacturing processes to full capacity, which imports may not exceed the volumes in (i) above. For example, if an applicant produced on average 100 units per month in each of the 12 months prior to the unrest and restoring its processes will require 6 months, not more than a total import volume of 600 units will be allowable under the rebate; and
(j) that the quantity of product/s to be imported under this rebate is necessary and proportionate to replace the Shortfall Products and does not give a competitive advantage to the applicant or cause disruptions in the market.

 

5.2 In addition to the requirements in paragraph 5.1 above, the applicant must provide information to the dtic on the following:
(a) any investigation the applicant is currently subject to or finding against the applicant by the Competition Commission, the National Consumer Commission, the Serious Offences Investigating Unit, the South African Police Service, the South African Revenue Service, the Financial Intelligence Centre, ITAC or any other regulatory authority or arm of Government;
(b) any short-term insurance or other measures that would compensate the applicant for production that would have taken place during the period of restoration of the manufacturing processes to full capacity – in this regard the applicant must provide information on any insurance or like coverage held by the applicant to enable an assessment of the equitability of the application under this rebate provision; and
(c) details on the extent to which the applicant will be able to produce the products or similar products to a limited or reduced extent during the period of restoration of its manufacturing processes to full capacity.

 

5.3 The documentary evidence and an affidavit from its principal executive officer or managing director referred to in paragraphs 5.1 and 5.2 should be forwarded to the dtic at the following e-mail address:

 

5.4 By submitting an application to ITAC, the applicant consents to ITAC sharing the information contained therein, as well as in the documents submitted with the application, with government authorities and regulatory bodies including, but not limited to, the dtic, except if the applicant expressly indicates that, and substantiates why, the information or some of the information cannot be shared.