ANNOUNCED AS TEMPORARYNo
On 30 October 2009, the South African Revenue Service (SARS) introduced an partial-import duty increase on flat screen display panels under the tariff heading 8529.
The duty increase is conditioned by the non-fulfillment of a local content requirement. The International Trade Administration Commission of South Africa (ITAC) recommended in Report no. 292/2009 that importers of display panels may keep the duty exemption if circuit boards are assembled in the country. The measure differentiates between two types of assemblers:
Completely knocked down (CKD)
The completely knocked down (CKD) model of assembly requires the insertion or placement of electronic components on circuit boards to be done domestically. CKD producers remain exempted from a duty on display panels.
Semi-knocked down (SKD)
Producers of the semi-knocked down (SKD) model of assembly import the circuit boards in an already populated state. Thus, now they are required to pay a duty of 12.2% on display panels. Previously, SKD assemblers would only pay a duty of 20% only on the populated circuit boards, but not on all other goods, such as the expensive display panels.
ITAC explained its move by stating that 'the aim of the rebate dispensation was to, over time, transition the SKD assemblers to full CKD assembly.' In order to do that, SKD assemblers need to invest in automatic insertion machines for populating circuit boards.
On 18 September 2015, the SARS suspended the duty on display panels for SKD producers, as most of them have transferred to the CKD model in the meantime.
⚑ Please report this page in case you detect an inaccuracy in its content.