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- Global decarbonisation commitments present new opportunities for the growth of a strong South African supply base of renewable energy components and finished products, battery storage units, as well as green consumer goods;
- The domestic demand trajectory, raw materials resource base, technological capacity and manufacturing experience places South Africa in a potentially strong position to become a key player in regional and international supply chains; and
- When carefully balanced, an improved tariff structure will increase the demand for, as well as the supply-competitiveness of, locally manufactured products and components; this will further enable export market opportunities; and will enhance the competitiveness of the local renewable value chain.
The possibility of increasing ordinary customs duties on some of the tariff lines listed in Table 1 below to their respective WTO bound rates, to the extent that there is capability or potential to manufacture them locally in order to improve the overall tariff structure and the effective rate of protection;
The possibility of creating rebate provisions for some of the products on this list to the extent they are input materials to downstream manufacturing activities, and they are not manufactured locally.
The potential discontinuation of rebate item 460.16/8541.43/01.06 that makes provision for the duty-free importation of solar PV panels, provided that installed domestic capacity reaches at least 50% of domestic demand, in order to incentivise further investments in the domestic assembly and manufacturing industry.
Proposals on the identification of additional products in the renewable energy value chain to be subjected to local content requirements. This is to be done in collaboration with the Department pf Trade, Industry and Competition under the framework of the new Public Procurement Act 28 of 2024, once the regulations for the policy have been developed.
The potential relaxation of Import Control Regulations for any critical minerals, or any other product, used as input material in downstream manufacturing activities in the renewable energy industry, particularly in battery storage technologies, to the extent that this would incentivise domestic manufacturing and investment.
The potential introduction of export control regulations for any critical minerals, or any other product, used as input material in downstream manufacturing activities in the renewable energy industry, particularly in battery storage technologies, to the extent that this would ensure security of supply and incentivise domestic manufacturing and investment.
List of proposed tariffs
Gazette notice
In the News
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