ANNOUNCEMENT 30 Oct 2009In October 2009, the members of SACU announced a change in import duties.
NUMBER OF INTERVENTIONS
SARS Notice R.602, published in the Government Gazette no. 39219 of 18 September 2015: http://www.sars.gov.za/AllDocs/Embargo/Tariffs/LAPD-LSec-CE-TA-2015-37-%20Notice%20R602%20GG%2039219%2018%20September%202015.pdf
ITAC Report no. 498 of 25 June 2015, 'Review of rebate item 316.17/85.29 governing the television assembly industry': http://www.itac.org.za/upload/document_files/20150918091614_SKM_754e15091809050.pdf
SARS Notice R.1028, published in the Government Gazette no. 32671 of 30 October 2009: http://www.sars.gov.za/AllDocs/Embargo/Tariffs/LAPD-LSec-CE-TA-2009-64%20-%20Notice%20R1028%20GG%2032671%2030%20October%202009.pdf
ITAC Report no. 292 of 27 August 2009: http://www.itac.org.za/upload/document_files/20141006124857_Report-292.pdf
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.