International Trade Administration Act, 2002 (Act No. 71 of 2002)RegulationsAutomotive Production and Development Programme post 2020 (APDP Phase II) RegulationsPart C - Production Rebate Certificates (PRCs)9. Eligible Products under the APDP Phase 2 |
| 9.1 | The following products qualify as eligible products under the APDP Phase 2: |
| 9.1.1 | Specified motor vehicles fitted with an engine and gear box manufactured in a licensed, special vehicle manufacturing warehouse in South Africa; |
| 9.1.2 | Specified motor vehicles not fitted with an engine or gear box manufactured in a licensed, special vehicle manufacturing warehouse in South Africa; |
| 9.1.3 | Automotive components applicable to specified motor vehicles; |
| 9.1.4 | Automotive tooling; |
| 9.1.5 | Automotive components applicable to heavy motor vehicles as defined in Note 1 to rebate item 317.07 of Schedule No.3 to the Custom and Excise Ac, 1964; and |
| 9.1.6 | Specified motor vehicles manufactured in a licenced, special manufacturing warehouse in South Africa, destined for assembly outside the borders of the Republic, must be in the form of kits that have untrimmed painted bodies with no parts assembled to the body (excluding those of subheading 8701.20 and 8706). |
| 9.2 | Notwithstanding section 9.1.3, 9.1.4 and 9.1.5, for their products to qualify as eligible products, component and tooling manufacturers must— |
| 9.2.1 | apply for an EPC in the manner and form as required by ITAC; |
| 9.2.2 | achieve local/international OEM supply chain turnover, excluding tooling, of at least 25 percent of total automotive turnover; or R10m in OEM supply chain invoicing per annum; |
| 9.2.3 | manufacture components and/or tooling for which a PI is claimed that are: |
| (i) | part of a local or international supply chain; or |
| (ii) | replacement parts manufactured by a manufacturer adhering to the requirements set out in section 9.2.1 and 9.2.2. |
| 9.3 | Notwithstanding sections 9.1 and 9.2, for components to qualify as eligible products, the following conditions must be met: |
| 9.3.1 | In the event of the final process of manufacture not taking place in South Africa, a determination as to the eligibility of the relevant product must be made by ITAC, provided that operations that consist only of packing or painting will not qualify as manufacturing; and |
| 9.3.2 | Not less than 25 per cent of the ex-factory selling price (exclusive of VAT, ad valorem excise duty and environmental levy) of the components, at the time of sale, is represented by the sum of— |
| (i) | the cost of labour incurred in South Africa; |
| (ii) | the value of material originating in the SACU; and |
| (iii) | the factory overhead expenses incurred in South Africa (excluding profit). |