Upholstered furniture fabrics - Textile Federation applies for amendment of rebate provision
24 February 2015
Posted by: Author: Bowman Gilfillan Inc
Author: Bowman Gilfillan Inc
On 20 February 2015 the International Trade Administration Commission of South Africa ("ITAC”) published a notice in the Government Gazette regarding an application by the Textile Federation of South Africa ("TEXFED”) for the amendment of the wording for qualifying fabrics under the rebate item 320.01 for the manufacture of upholstered furniture.
A rebate enables certain importers to import goods without paying duties under certain conditions. The primary aim of rebates is to provide a customs duty waiver and therefore an availability at world competitive prices of products that attract duties but are not produced or insufficiently produced domestically as an industrial or agricultural input for certain critical applications, as a capital item, or as an agricultural product for consumption.
TEXFED argues that the current wording, scope and coverage of the relevant rebate provision is too broad and has the unintended consequences of extending the benefits to importers of certain fabrics that are also manufactured locally to the detriment of local producers. The application is therefore meant to protect the domestic producers by ensuring that importers of fabrics that are also domestically manufactured do not qualify for the rebate.
Comments or any objections to the above applications are to be made within four (4) weeks of the date of notice.
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This article first appeared on bowman.co.za.