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Automotive Production and Development Programme Under the Spotlight

July 5, 2022

Department of Trade, Industry and Competition

Amendments to the regulatory framework governing the Automotive Production and Development Programme Phase 2 (APDP2) are on the cards.

The trade, industry and competition department published a Policy Directive in Government Gazette 46644 in terms of the International Trade Administration Act.

The Policy Directive directs the International Trade Administration Commission (ITAC) to assist with amendments to the APDP2 regulatory framework.

According to the department, the recent flooding in KwaZulu-Natal caused significant damage to automotive manufacturers such that they have ceased, at least temporarily, the production of automotive products that would entitle such manufacturers to apply for benefits under the APDP2.

Consequently, ITAC is tasked with considering amendments to the APDP2 regulatory framework to provide for a limited departure from the normal requirements for the accrual of benefits under the APDP2.

“Such amendments should also address special facilities such as the advance issuing of production rebate certificates (PRCs), deviation from the specific administrative requirements to claim PRCs, replacement of PRCs (for example for vehicles already produced in SA but damaged due to the flooding and written off prior to the PCRs being issued) and the conditions to be met by a final manufacturer to qualify for any such limited deviation under the APDP2.”

The Policy Directive is designed to promote local manufacturing by ensuring the commercial viability of final manufacturers under the APDP2 whose ability to manufacture has been severely affected by the KwaZulu-Natal flooding.

Once formulated, proposed amendments to regulations and guidelines will be published for comment.