IMPLEMENTATION LEVEL

Supranational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 30 Oct 2009 | Removal date: 28 Sep 2015
Still in force

Import tariff

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.
 
Update
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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

474 Parts for the goods of classes 4721 to 4733 & 4822
8529 Parts suitable for use solely or principally with the apparatus of headings 85.25 to 85.28.
852910 Aerials and aerial reflectors of all kinds; parts suitable for use therewith
852990 Other

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