African Chemicals (Pty) Ltd (AfriChem) applied for the creation of a rebate facility on caustic soda, which is a highly corrosive, alkaline substance used in many manufacturing processes e.g., the manufacture of paper, laundry soaps, pulp, mining sector, and other sectors within South Africa.
One of the key drivers for African Chemical’s application was to reduce the cost of importing caustic flakes into South Africa, given that there is a shortage of caustic soda in the market, and the rebate will support the creation of employment, as there are still processes and costs in getting the flakes to liquid form.
The Commission decided to approve the application for the creation of a rebate facility on caustic soda. The rebate will be reviewed after a period of three years, after the date of implementation or such other period as the Commission may deem appropriate.
A rebate facility provides a duty waiver for domestic industries not to pay full or partial customs duties on a specific product. It allows for sourcing of inputs at world competitive prices and promotes competitive pricing in the local and export markets.
Please refer to Report 731 for full details.
ISSUED BY THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION OF SOUTH AFRICA