Incentives for exporters

first_imgThe government provides various incentives to South African firms to export their products internationally. Export Marketing and Investment Assistance The Export Marketing and Investment Assistance (EMIA) scheme compensates exporters for the costs involved in developing export markets for South African products and services. Set up by the Department of Trade and Industry (DTI), EMIA aims to develop an export market in South Africa and to assist South African exporters gain access to this market. By encouraging individual manufacturers and exporters, the DTI hopes to recruit new foreign direct investment. The scheme is administered by Trade and Investment South Africa’s (TISA) export promotion unit. Under this scheme, the DIT offers exporters incentives and financial assistance with market research, trade missions, showcasing products and services at international exhibitions, among other things. Costs covered can include exhibition fees, stand construction, travel and daily allowances. Who qualifies for EMIA assistance?South African manufactures and exporters;South African export trading houses representing at least three SMMEs or businesses owned by Historical Disadvantaged Individuals (HDIs);South African commission agents representing at least three SMMEs or HDI- owned businesses; andSouth African exports councils, industry associations and joint action groups (JAGs) representing at least five South African entities. The Industrial Development Corporation The IDC makes financing available at reduced rates for selected expansion schemes that are expected to result in increased foreign exchange earnings. Financing of credit for exporters of capital goods is also available through the IDC or private sector merchant banks at reduced rates. The Export Credit Insurance Corporation The ECIC provides export credit and foreign investment insurance cover on behalf of the government. The ECIC, an agency of the Department of Trade and Industry, aims to facilitate and encourage South African export trade by underwriting export credit loans and investments outside the country to enable South African contractors to win capital goods and services’ contracts in other countries. Website: sars.gov.za Website: www.ecic.co.za Website: www.idc.co.zaSee the official portal for South African government incentive schemes: www.investmentincentives.co.za Website: sars.gov.za See the DTI website for the latest information on EMIA Download the DTI’s Guide to Incentive Schemes 2011/12, [PDF]Contact the EMIA administrators:General enquiries: (012) 394 1014DTI Customer Contact Centre: 0861 843 384 Credit Guarantee Insurance Corporation Offers exporters insurance covering domestic or international debtors, which means exporters are protected against non-payment. IDC is a shareholder of the company.Website: www.creditguarantee.co.za See the DTI website for the latest information on sector specific funding, including Project Funding For Emerging Exporters guidelinescenter_img See the DTI website for the latest information on CPFP, including guidelines and to download application forms Sector Specific Assistance Scheme The Sector Specific Assistance Scheme (SSAS) is a reimbursable 80:20 cost-sharing grant offering financial support to export councils, joint action groups and industry associations. The scheme has a subprogramme specially designed to assist emerging exporters. Eligible enterprises are non-profit business organisations in sectors and sub- sectors of the industry prioritised by the DTI. Customs and Excise duty refunds Provision is made in the Customs and Excise Act for general refunds, as well as a large number of specific drawbacks and refunds of customs and excise duties, to exporters. These concessions are available to manufacturers as well as to merchants who import goods for re-export. Assistance is divided between individual and group offerings; and each scheme has its own defined criteria. VAT Export Incentive Scheme Exporters may zero-rate VAT on exports regarded as a direct export. Applicable to exporters registered as VAT vendors in South Africa. You must be registered with the South African Revenue Service (SARS) to export commercial goods from South Africa. Capital Projects Feasibility Programme The Capital Projects Feasibility Programme (CPFP) is a cost-sharing programme that contributes to the cost of feasibility studies likely to lead to projects outside South Africa that will increase local exports and stimulate the market for South African capital goods and services. All South African enterprises are eligible, as long as the study is undertaken by local companies. SA.info reporter Reviewed: 5 August 2012 Would you like to use this article in your publication or on your website? See: Using SAinfo materiallast_img

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