1. 01/03/2016 1 TARIFFS AND REBATE ADMINISTRATION HDI SEMINAR FOR POULTRY & MEAT IMPORTERS TARIFFS & AGOA REBATE ADMINISTRATION RIKA THEART

2. 01/03/2016 2 TARIFFS AND REBATE ADMINISTRATION INTRODUCTION OUTLINE OF PRESENTATION: 1)TARIFFS & AGOA REBATE ITEM 460.03/0207.14.9/01.07 2)PROCESS FOLLOWED TO CREATE REBATE PROVISION 3)ITAC PROCESS RE THIS REBATE 4)MAIN CONDITIONS ATTACHED TO A REBATE PERMIT

3. 01/03/2016 3 TARIFFS AND REBATE ADMINISTRATION TARIFFS & AGOA REBATE ITEM 460.03/0207.14.9/01.07 Customs duty: Imposed to create a level playing field against fair trade between domestic producers’ products and similar imported products. Anti-dumping duty: Imposed against unfair trade: Anti-dumping, Countervailing and Safeguards. Rebate 460.03: A waiver provided for the domestic industries not to pay the anti-dumping duty on bone-in chicken imports from the USA. Note: This rebate does not include rebating the general customs duty of 37%, which serves as protection for the domestic industry.

4. 01/03/2016 4 TARIFFS AND REBATE ADMINISTRATION PROCESS FOLLOWED TO CREATE REBATE PROVISION ITAC was instructed through the Minister’s directive to investigate and evaluate the creation of a rebate provision. Guidelines was developed by DAFF, DTI, SARS and ITAC and published in the Government Gazette for comment by stakeholders on 30 October 2015. (Guidelines was developed bearing in mind the importance of the protection and encouragement of the development of the domestic poultry sector in terms of production, investment and employment but also ensuring effective utilisation of the rebate provision concerned.) Rebate provision was implemented on 18 December 2015. Initial period (18/12/15 – 31/03/16): 16 250 mt on a First-come-first-serve basis 01/04/2016 going forward: Quota = 65 000 metric tons/annum allocated as per Guidelines

5. 01/03/2016 5 TARIFFS AND REBATE ADMINISTRATION ITAC PROCESS RE THIS REBATE DAFF allocates quota to applicants. DAFF sends the original DAFF import quota permit to ITAC and a Notification letter to applicant. Applicants complete ITAC questionnaire and submit it to ITAC. At least seven (7) working days should be allowed for the issuing of permits where ITAC has received a duly completed application form. Each rebate permit issued defines the quantity & value of the products and the period during which the products concerned can be cleared under the applicable rebate item. Rebate permits will be issued only for the corresponding period for which the DAFF quota import permit has been issued. ITAC will send the original ITAC rebate permit to SARS who will capture it on their system. ITAC will send a Notification letter to Applicant – clear goods.

6. 01/03/2016 6 TARIFFS AND REBATE ADMINISTRATION MAIN CONDITIONS ATTACHED TO A REBATE PERMIT None of the products entered under this rebate may be removed, sold or otherwise be disposed of in the Republic of Botswana, Kingdom of Lesotho, Republic of Namibia or the Kingdom of Swaziland. Bone-in cuts subject to these Guidelines shall not be shipped from the United States of America unless the importer is in possession of an appropriate, valid DAFF quota import permit and ITAC rebate permit in which such products are specifically described. Bone-in cuts subject to these Guidelines, that arrive at ports of entry in the Republic of South Africa and for which the importer cannot produce a valid DAFF quota import permit and ITAC rebate permit, shall constitute a contravention of these Guidelines, the ITA Act and the Customs and Excise Act. Contraventions of the provisions of the ITA Act and/or the Customs and Excise Act will result in the withdrawal or cancellation of the rebate permit and/or the seizure of products being imported under said permit and/or may result in criminal prosecution in terms of the ITA Act and/or the Customs and Excise Act.

7. 01/03/2016 7 TARIFFS AND REBATE ADMINISTRATION MAIN CONDITIONS ATTACHED TO A REBATE PERMIT (CONT.) Only products described in the rebate permit may be imported. The rebate permit is issued without amendments of any kind and any unauthorised amendment will render the permit invalid. Nothing in the Guidelines shall absolve an importer from the obligation of also complying with the provisions of any other legislation relating to the importation of products into the Republic of South Africa. ITAC may require additional documentation in order to make informed decisions and to ensure sound administration of the Rebate Provision. ITAC officials may at any time inspect premises, documentation or imported products for compliance.

8. 01/03/2016 8 TARIFFS AND REBATE ADMINISTRATION MAIN CONDITIONS ATTACHED TO A REBATE PERMIT (CONT.) Affidavit: The obligation to complete and submit the affidavit cannot be transferred to an external authorized representative, auditor or any other third party acting on behalf of the applicant. The applicant or any one of its associates, or related party is not a subject of an investigation by any organ of State or other regulatory authority. THANK YOU!