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The Minister of Trade, Industry and Competition (“Minister”) has requested The International Trade Administration Commission of South Africa (“ITAC” or the “Commission”) to consider the possibility of creating rebate provision for the importation of solar panels in light of the current electricity crisis in South Africa. The Commission considered the application in light of the information at its disposal. In particular, the Commission considered the following factors: • The need to provide protection to the domestic industry which has invested heavily in manufacturing capacity, while at the same time balancing that with the need to avoid shortages in the supply of components that may slow down the energy-supply rollout plan; • The recent disinvestment by several domestic manufacturers in the local manufacturing of the subject product. ARTsolar and Seraphim are the only two remaining manufacturers of the subject product in the SACU region. • This is after Jinko Solar, Solaire Direct, SunPower Energy Systems Southern Africa, JApowerway and SMA Inventers Manufacturers ceased local production and resorted to importing the subject product. The major reasons for ceasing local production included, amongst others, high local manufacturing costs and high competition from low-priced imports; and • The in-principle approval by the Minister of ITAC’s Report No.613, which recommended that the rate of customs duty on crystalline silicon photovoltaic modules or panels, classifiable under tariff subheading 8541.40.10 (new 8541.43) be increased from free of duty to 10% ad valorem, by way of creating an 8 digit tariff subheading. • The temporary rebate provision will be made available subject to a rebate permit issued at such times, in such quantities, and subject to such conditions as ITAC may allow by specific permit. As such, guidelines, rules, and conditions have been developed to ensure the effective and efficient administration of the rebate provisions with measurers to mitigate the risk of abuse or misuse of the rebate facilities and to minimise the risk of unintended consequences. • The Commission concluded that in the event of shortages of solar panels in the domestic market, the temporary rebate provision may be used to mitigate risks of supply in the ordinary course of business, especially given the current electricity crisis in South Africa. • The Commission recommended the creation of a temporary rebate provision for the importation of importation of photovoltaic cells, assembled in modules or made up into panels, classifiable under tariff subheading 8541.43.
ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA |