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Automotive Production and Development Programme Phase 2 Regulations Amended

August 4, 2022

Department of Trade, Industry and Competition

Automotive Production and Development Programme Phase 2 (APDP2) Regulations have been amended.

The trade, industry and competition department published the amended Regulations in Government Gazette 47184 in terms of Section 59 of the International Trade Administration Act.

The APDP2 Regulations were promulgated in 2021.

A new Part F and section 22 on exceptional circumstance is inserted.

It focuses on manufacturers seeking a deviation from the normal rules relating to accruing and claiming of benefits under APDP2 following the declaration of a national state of disaster by the president.

Prior to applying to the International Trade Administration Commission (ITAC), a final manufacturer must approach the department in order to confirm that exceptional circumstances exist to warrant a deviation from normal requirements related to accruing and claiming of benefits under APDP2.

“Requests will be adjudicated on a case-by-case basis by ITAC and approval may be subject to conditions as determined by the ITAC, provided it is of the view that a limited deviation from the normal requirements is in the interest of promoting local manufacturing and is in line with ensuring the commercial viability of the final manufacturer under the APDP2 whose ability to manufacture has been severely affected by the aforementioned occurrence”.

A new Part G and section 23 of the Regulations on transitional notes is also inserted.

It stipulates that no application for a production rebate certificate based on sales after the termination of the APDP on 30 June 2021 will be entertained.

Conditions applying to existing light motor vehicle manufacturers in order to qualify for a CSP during 2021 are set out in order to ease the transition from the APDP to APDP2.

Part G points out that a “most recent four quarter total of 10 000 units must be achieved during the third quarter of 2022, unless an OEM has successfully applied for a dead quarter concession”.

The amendments came into effect on the date of publication.

However, comments on the amendment are invited within 14 days of the date of publication and the department points out that subsequent revisions to the APDP2 Regulations as may be required can be made.