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The Concept
An IDZ is a purpose-built, industrial estate linked to an international airport or port, which contains a controlled Customs Controlled Area (CCA). A CCA is exempt from duties, VAT and import duty on machinery and assets.
In keeping with international trends in export-oriented zone development, the International Trade Administration Commission (ITAC) provides an enabling business environment that facilitates quick decision-making processes, attractive benefits and high quality inputs at competitive rates, as well as labour standards that give easy access to world markets.
As a result of globalisation, ports and airports are changing so that they can cater for increased economic activity and facilitate access to foreign markets for business people and manufacturers. The IDZ Programme provides facilities and services tailored for export-oriented industries.
Government will license operators to develop and run selected IDZs. These operators will be expected to provide enterprise support measures, minimise red tape and provide efficient services to all enterprises within the IDZ.
Aims of the programme
An Industrial Development Zone is any area declared as such by the Minister of Trade and Industry under section 10(1) of Act No 187 of 1993.
Each zone is designed to:
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Provide a location for the establishment of strategic investments.
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Promote and develop links between domestic and zone-based industries to optimise use of existing infrastructure, generate employment and create technology transfers.
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Enable exploitation of resource-intensive industries.
Key features of an IDZ
Each IDZ offers:
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Direct links to an international port or airport.
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World-class infrastructure, specially designed to attract tenants.
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Suitability for export-oriented production.
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Dedicated customs support services to expedite excise inspection and clearing.
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Duty-free importation of production-related raw materials and inputs.
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A zero rate of VAT on supplies procured from South African sources.
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Import status for finished goods which are sold into South Africa.
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Government incentive schemes.
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Reduced taxation and exemption for some activities/products.
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Access to the latest information technology for global communications.
Why relocate to an IDZ in South Africa?
Relocation to an IDZ can improve your company’s competitiveness in both local and foreign markets. Your company will also enjoy the benefits of operating in an internationally recognised ‘best practice’ environment that offers:
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Eligibility, entitlement and access to government incentives, such as the Critical Infrastructure Fund (CIP), Export Marketing and Investment Assistance (EMIA), Strategic Investment Programme (SIP) and other supply-side schemes.
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Infrastructure that provides quick and easy access to international markets – this can cut costs and reduce delivery times.
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A one-stop centre that facilitates and expedites regulatory documentation and other procedures and requirements.
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Human resource development through accelerated skills development programmes.
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A sound industrial relations environment based on co-operation, joint decision-making and rapid conflict resolution.
Where do I start?
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Obtain an information brochure and IDZ regulations from the dti.
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Consult with local and provincial government.
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Identify land suitable for the IDZ.
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Register intent with ITAC.
(Reproduced from ITAC website) |