South Africa relaxes APDP2 minimum-kit rule for exported vehicle assembly

Immediate Schedule amendment

The Minister of Finance made Notice R.8158 in Government Gazette 55680 under section 48 of the Customs and Excise Act 1964. It substitutes Note 5(b) in Chapter 98, Section XXII of Part 1 of Schedule 1. SARS describes the measure as extending the allowable minimum level of local assembly for semi-knocked-down vehicle kits qualifying under the Automotive Production and Development Programme 2 and records 6 November as the implementation date.^[1][2]

Minimum kit conditions

The substituted note applies to original-equipment components for specified motor vehicles under rebate item 317.04 that are destined for assembly outside South Africa. The components must arrive in the minimum form of kits with untrimmed painted bodies and no parts assembled to the body. The kit may exclude lead-acid batteries. That wording makes battery omission permissible, not mandatory, and does not remove the untrimmed-body or no-parts-assembled conditions.^[1]

Narrow operative text

The binding notice is a narrow replacement of Note 5(b). It does not itself enumerate vehicle models, component codes, duty rates or the wider programme eligibility rules beyond the cross-reference to rebate item 317.04. Those limits remain matters for the current Schedule and relevant APDP2 and ITAC materials; the amendment should not be characterised as permitting omission of components other than lead-acid batteries.^[1][2]

Customs implementation

Vehicle manufacturers, importers and customs brokers should reassess qualifying kit specifications and supporting entry records from 6 November. Confirm that the vehicle falls within rebate item 317.04, the components are destined for assembly outside South Africa, and the kit meets the body and assembly-state conditions. The notice changes tariff eligibility evidence rather than corporate income-tax returns and does not prescribe a new customs form or transitional process. Model-specific duty benefits therefore require a separate check against the current rebate schedule.^[1][2]