The International Trade Administration Commission of South Africa ITAC has called for comment on its tariff application for the extension of the minimum level of local assembly for semi-knocked down vehicle kits for participation under the APDP2, with lead acid batteries excluded, which is due by 05 December 2025
The proposed wording to read Original equipment components for specified motor vehicles as defined in rebate item 317.03 or 317.04 destined for assembly outside the borders of the Republic, must be in the minimum form of kits that have untrimmed painted bodies with no parts assembled to the body and may exclude lead acid batteries.
ITAC lodged the application, reasoning that in his policy directive, the Minister of Trade, Industry and Competition considered requests submitted by vehicle assemblers participating under the Automotive Production and Development Programme APDP to extend the minimum level of assembly required for the SKD vehicle kits to qualify on the basis that certain African countries require local sourcing of certain components as part of their localisation policy. Furthermore, making provision in terms of Chapter 98 of the Customs and Excise Act, 1964, and the Amended APDP Regulations would allow for the exclusion of acid lead batteries from SKD vehicle kits exported from South Africa, on the condition that there is evidence of domestic production of the component at the export destination.
