Rebate store inspection checklist
To stimulate local exports, the South African government grants local manufacturers who have passed a rebate store inspection rebates on imported raw materials and inputs for use in the manufacture, processing, finishing, equipping and packing of goods specifically for export. This means that local producers pay less for imported raw materials, which makes their final products more competitive in the international market. To qualify for these rebates, the imports have to be processed and stored in a Custom’s approved rebate store. These stores can be on the manufacturer’s main premises or on separate premises. Rebate stores must adhere to all requirements stipulated by customs.
Once a business submits a rebate user application, their rebate store has to pass an initial customs rebate store inspection.
The following checklist outlines what the customs inspector will look for during his inspection:
If the applicant applied for Rebate Item 470.03 rebate status, the following additional requirements apply:
- Can the applicant provide proof of exportation for the manufactured goods?
- Are the applicant’s imports specified in an ITAC permit?
Note: To qualify for rebates, any imported materials and goods must be processed in South Africa and exported within:
- 12 months if goods fall under Rebate Items 470.03/00.00/01.00 and 470.03/00.00/02.00, or
- 3 years if goods fall under Rebate Item 470.03/00.00/03.00.
If the inspector is satisfied that the above mentioned criteria are met, customs will approve the rebate application. If the application is not approved, customs can give the applicant a specific time period to make corrections and arrange a follow-up inspection. After the follow-up inspection, customs will either approve or reject the application.
After the initial inspection and approval, customs will still conduct regular inspections. This is to ensure that all imported goods are properly stored and accounted for, and that the manufacturer sells the finished goods exclusively to export markets.
About the author
Tracy studied at Stellenbosch University and gained her initial experience in imports and exports through working for industry. After starting her own import business, and helping some friends do the same, she realised there was a need for reliable customs registration services. As a result, in 2011, Import Export License was born. Since then thousands of importers and exporters have been helped to obtain their import export licences, permits, specialised customs registrations and connect with Import Export License consultants for advice on importing, exporting, and other customs related matters.