COVID-19 Duty Rebates on essential supplies

As part of the Government’s business relief efforts during the COVID-19 pandemic, certain goods may qualify for VAT and duty-free imports. On the 25th of March, the Government Gazette published a list of essential goods in terms of the COVID-19 emergency regulations. The details below act as a guide for how to apply for these provisions.

List of essential goods

The listed items can be imported free of duty and VAT under the Customs Act’s special rebate provisions, for goods imported for disaster relief. Conditions apply. 

1. Food
   • Any food product, including non-alcoholic beverages;
   • Animal food; and
   • Chemicals, packaging and ancillary products used in the production of any food product.
2. Cleaning and Hygiene Products
3. Toilet paper, sanitary pads, sanitary tampons, condoms;
4. Hand sanitiser, disinfectants, soap, alcohol for industrial use, household cleaning products, and personal protective equipment;
5. Chemicals, packaging and ancillary products used in the production of any of the above.
6. Medical
   • Medical and hospital supplies, equipment and personal protective equipment; and
   • Chemicals, packaging and ancillary products used in the production of any of the above.
7. Fuel, including coal and gas
8. Basic goods, including airtime and electricity.

How duty relief will be granted

Duty relief will be granted by Customs in terms of rebate item 412.11 only if a special rebate permit has been issued by ITAC for the goods in question. Item 412.11 covers goods imported for the relief of persons suffering distress as a result of a national disaster. During the lockdown, ITAC will only consider applications for, and issue, rebate permits under this item and no other.

Although the International Trade Administration Commission is shut for the duration of the COVID-19 lockdown, senior staff are working remotely to process various types of import and export permits and to issue special rebate permits under tariff item 412.11, for essential goods.

An expanded, specific list of medical supplies that may be imported under rebate item 412.11 is available here.

Conditions that apply to imports under Special Rebate Item 412.11

1. The application for the rebate permits must be made before goods are shipped,
2. Permits are issued at the sole discretion of ITAC,
3. No duty refunds or entry substitutions will be allowed where goods have been cleared duty-paid in the absence of a rebate permit,
4. Permit issue may take as long as 14 days. (ITAC will apparently endeavour to fast track specific urgent applications where necessary),
5. Goods imported under this rebate facility may not be supplied to any BLNS state without the permission of SARS.

The full regulations relating to the issue of rebate permits, as well as an example of the general format to be used when applying for permits may be found at the following link: http://www.itac.org.za/pages/about-itac/covid-19-news-and-regulat

Who to contact

E-mail applications can be sent directly to the following officials at ITAC:

• csako@itac.org.za  for goods falling in chapters 1-68 of the customs tariff
• kmzinjana@itac.org.za  for goods falling in chapters 1-68 of the customs tariff
• lmaliaga@itac.org.za for goods falling in chapters 69-96 of the customs tariff

If you’d like to speak to a representative at Bidvest International Logistics, please contact Riaan Pienaar riaanp@bidvestil.com or Currie Pisapia curriep@bidvestil.com.