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APDP Post 2020 Regulations in Place

February 15, 2021

Department of Trade, Industry and Competition

Automotive Production and Development Programme (APDP) post 2020 Regulations have been published.

The trade, industry and competition department published the Regulations in Government Gazette 44144.

The regulations were drawn up by the International Trade Administration Commission.

The APDP replaced the motor industry programme at the beginning of 2013.

The APDP is designed to increase the number of light motor vehicles produced in South Africa as well as the number of components manufactured through the provision of export rebates and refunds. This will result in job creation.

The key objectives of the APDP include:

• improve the international competitiveness of the South African automotive industry.
• increase the number of exports.
• stabilise and potentially increase employment levels.
• facilitate the achieving of economies of scale in assembly.
• attract additional capital investment into South Africa.

The programme is designed to support the vision of the South African Automotive Masterplan of creating a “globally competitive and transformed automotive industry that actively contributes to the sustainable development of South Africa’s productive economy, creating prosperity for industry stakeholders and broader society”.

According to the department, the vision will guide the development of the South African automotive industry to 2035 with all the policy elements of Phase 2 of the APDP supporting its realization.

The Regulations apply in the Southern African Customs Union and must be read together with Rebate Item 317.04 of Schedule 3 to the Customs and Excise Act of 1964 and all APDP2 Information Documents.

The Regulations focus on production rebate certificates, calculation of the company specific percentage for volume assembly localisation allowance purposes, imported content values and transitional notes.

The Regulations come into effect on 1 July 2021.