South Africa: Upcoming tariff changes for the renewable energy sector — What you need to know

06 May 2025    2 minute read
ITAC Critical Minerals

In brief

The International Trade Administration Commission (ITAC) has announced a review of 82 tariff codes for the renewable energy sector, aiming to enhance local production. Key changes include potential increases in customs duties, creation of rebate provisions, discontinuation of certain duty-free import rebates, and the introduction of export control regulations for critical minerals. These amendments are crucial for businesses in the renewable energy value chain, especially amid South Africa's ongoing energy crisis. Stakeholders are encouraged to participate in the review process by submitting feedback by 16 May 2025.

Contents

In more detail

To enhance local production within the renewable energy value chain, the International Trade Administration Commission (ITAC) issued a notice on 17 April 2025, announcing the intention to review 82 tariff codes for input materials, components, and final goods used within the renewable energy value chain.

Scope of the Review

The review focuses on the following:

  • Increasing Ordinary Customs Duties: The possibility of raising customs duties on products listed in Table 1 of the notice to their respective WTO bound rates—the highest duty that can be legally implemented by a WTO member—if there is capability or potential to manufacture them locally.
  • Creating Rebate Provisions: The potential for creating rebate provisions for products that are input materials for downstream manufacturing activities and are not manufactured locally.
  • Discontinuation of Rebate Item 460.16/8541/01.06: The potential discontinuation of the rebate item that allows duty-free importation of solar PV panels, provided that installed domestic capacity reaches at least 50% of domestic demand, to incentivize further investments in domestic assembly and manufacturing.
  • Proposed identification of additional items in the renewable energy value chain to be subject to local content requirements.
  • Relaxation of Import Controls: The potential relaxation of Import Controls Regulations for critical minerals or other products used as input materials in downstream manufacturing activities of the renewable energy industry, to incentivize domestic manufacturing and investment.
  • Introducing Export Control Regulations: The introduction of export control regulations for critical minerals used as input materials in downstream manufacturing activities in the renewable energy industry, to ensure security of supply and incentivise domestic manufacturing and investment.

With South Africa facing an ongoing energy crisis, the demand for solar panels and other renewable energy solutions has experienced a surge. This review has significant implications for businesses involved in the renewable energy value chain. It is crucial for all affected parties and stakeholders, including local manufacturers and importers to actively participate in ITAC's review process. By providing comments and feedback, businesses can help shape policies that directly affect their operations and contribute to a more sustainable renewable energy sector.

Deadline for Submissions

The deadline for submissions is 16 May 2025. Please reach out to Virusha Subban if you would like us to assist you with your submission.

Contact Information
Virusha Subban
Partner
Johannesburg
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virusha.subban@bakermckenzie.com

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