ANNOUNCED AS TEMPORARYNo
On February 9, 2018, the South African Revenue Service (SARS) issued Notice R. 103 introducing a full rebate on certain raw material related to the manufacture of adult disposable napkins. The products subject to the full rebate on import tariffs are raw materials classified under HS code subheadings 3919.10, 3920.10, 5404.11, 5603.1, 5603.9, and 5903.90.
According to the WTO, the applicable import duty on these goods ranges between 5.83% and 15%.
The full rebate provisions on non-woven fabrics will be imported under rebate provisions which are subject to a permit administered by the International Trade Administration Commission of South Africa (ITAC), whilst the full rebate on the rest of goods will be administered by SARS.
Previously to this intervention, this full rebate only applied to disposable baby napkins. In this sense, Validus Medical (Pty) Ltd, requested the introduction of adult napkins in order to boost its productivity.
Although the measure does not have a temporary character, ITAC has recommended the revision of the duty structure for adult diapers within twelve months.
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