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As a South African entrepreneur looking to engage in international trade, understanding the International Trade regulations governed by the International Trade Administration Commission of South Africa (ITAC) is essential. This guide will walk you through everything you need to know about ITAC permits, including their role, application process, benefits, and more.
We are Company Partners, your trusted ally in navigating South Africa’s business compliance landscape for the past 10+ years. Specializing in aiding SMEs and Entrepreneurs, we’re dedicated to making the process of an ITAC Permit straightforward and efficient.
An IT14 is the official form that must be completed annually to report your company’s or close corporation’s financAn ITAC permit, also known as “Import Permit”, is an official document issued by the International Trade Administration Commission of South Africa (ITAC).
Companies wishing to import used products into South Africa are required by SARS to obtain an ITAC permit.
This import category includes any goods that have been “used” or “refurbished.” The goods that you acquire from your supplier will be marked as second-hand on the commercial invoice or waybill.ials for tax purposes for the previous financial year.
Essentially, it serves as a summary of your August and February financial submissions to SARS. If you have missed 1 or 2 transactions, you can include them in your IT14 submission.
ITAC operates under the Department of Trade, Industry and Competition (DTIC) and plays a crucial role in regulating South Africa’s trade. Here are the main functions of ITAC:
Issuing of Permits: ITAC issues import and export permits to businesses involved in international trade. This ensures that trade activities align with international agreements and South Africa’s trade policies.
Trade Remedies: ITAC applies trade remedies to protect local industries from unfair international trade practices. These remedies include anti-dumping duties, countervailing duties, and safeguard measures.
Trade Policy Compliance: Ensuring that South Africa’s trade policies comply with international trade agreements and standards.
ITAC’s import and export control measures are designed to enforce health, safety, environmental, and security standards. These controls are aligned with international agreements like the Montreal Protocol and the Basel Convention, which address global concerns such as ozone layer depletion and hazardous waste management.
South African regulations require a business or individual that intends to bring goods into and/or send goods out of the country, to register as an importer and/or exporter with SARS.
Before initiating an import or export business, it is crucial to be informed of the regulations that apply.
If you are importing or exporting goods that are regulated, you must also obtain an ITAC Permit.
In general, an ITAC permit is necessary for the importation or exportation of used products. Additionally, the importation of raw and manufacturing materials, such as ferrous and non-ferrous refuse, scrap, and used motor vehicles, as well as stones such as Tiger’s Eye and Sugilite, is continuously subject to restrictions and frequently prohibited.
Applying for an ITAC permit involves three steps, which may vary slightly depending on whether you are applying for an import or export permit, and if you require additional permits for specific goods like chemicals, textiles, and vehicles. Here’s a general guide to help you through the process:
Navigate to the ITAC website Services menu, where you will find the different applications forms for Import- and Export control.
Download the applicable form that is relevant to the goods that you will be importing or exporting and the purpose (eg. Commercial or Personal Use).
Fill out the ITAC import permit application form or the relevant export permit form and ensure all sections are accurately completed.
Prepare the necessary documents (as mentioned above) for your application.
Submit the completed application form along with the required documentation to the Directorate: Import and Export Control at ITAC.
Applications can be emailed to the respective officials or delivered directly to their office in Pretoria. You can find the address here.
ITAC will review your application, which involves verifying the information provided and assessing compliance with relevant regulators or regulations. Depending on the goods in question, the application may include inspections or require support documentation from other departments (DEA, Mineral Resources Energy, Agriculture, Forestry and Fisheries, NRCS, and SAPS)
On average, applications are processed within five business days. Should ITAC require additional support documentation, it may result in longer waiting times of up to several months. It is advisable to apply well in advance of your intended trade activities to accommodate any potential delays.
If your application is approved, ITAC will issue the permit, which will specify the terms and conditions for importing or exporting the controlled goods.
Having an ITAC permit offers 3 main advantages for South African entrepreneurs:
Legal Compliance: An ITAC permit ensures that your business operations comply with South African trade regulations, avoiding legal issues and penalties.
Market Access: An ITAC permit grants your business access to international markets for exporting goods, enhances business growth and gives your business more opportunities in the market.
Protection of Domestic Industries: By regulating imports, ITAC permits help protect local South African industries from unfair competition, which fosters a healthier domestic market.
Navigating the world of international trade requires a clear understanding of regulatory frameworks and compliance requirements. For South African entrepreneurs, obtaining an ITAC permit is a critical step in ensuring lawful and efficient trade operations. By following the step-by-step guide provided, businesses can successfully apply for ITAC permits, gaining access to the numerous benefits they offer. From compliance with regulations to protection against unfair competition, ITAC permits are an asset for any business engaged in import and export activities.
Company Partners, with over 10 years of experience in navigating South Africa’s business compliance landscape, can be your trusted partner in obtaining an ITAC Permit and ensuring comprehensive trade compliance. Our team of experts can guide you through the entire process, from understanding ITAC regulations to submitting your application and ensuring adherence to all legal requirements.
Let us help you focus on expanding your business ventures across borders while we handle the complexities of permit applications and trade compliance.
Contact Company Partners today for a Free Consultation.