- ITAC proposes higher import duties on selected renewable energy inputs including lithium ion batteries.
- Solar components may face local content requirements and exclusion from staged consignment policy.
- Rebate on solar photovoltaic imports to remain temporarily until domestic assembly reaches 50% of demand.
South Africa’s International Trade Administration Commission has released preliminary determinations that could significantly reshape the country’s renewable energy value chain through adjustments to import tariffs, rebate mechanisms and local procurement rules, following a broad consultation process with industry stakeholders.
The review, initiated by the Department of Trade, Industry and Competition, was published in the Government Gazette in April 2025 and attracted more than 45 submissions from industry participants. These submissions covered a wide range of concerns including requests for tariff increases, relaxation of import controls, inclusion of certain products under local content requirements, and revisions to staged consignment arrangements.
The ’staged consignment’ method provides a blanket code for an entire project (although it is equipment related in the policy), enabling duty-free importation of all items, including critical components and even general construction materials. The premise of the stage consignment is that goods imported cannot be sourced locally.
Based on the submissions and its own analysis, the Commission has recommended that ordinary customs duties on selected tariff lines be increased to their respective World Trade Organization bound rates where policy space allows. The recommendation is subject to further assessment during the ongoing investigation phase.
Related news: Local renewable energy supply chains cry fowl over alleged loophole in SARS ‘staged consignments’ import concession
A key preliminary determination includes a proposal to raise the general customs duty on fully assembled lithium ion batteries to a WTO bound rate of 15% ad valorem. This would be implemented through the creation of a new 8 digit tariff subheading, signalling a more targeted approach to regulating battery imports amid rising demand from the renewable energy and storage sectors.
The Commission has also proposed a phased approach to the potential discontinuation of rebate provisions on solar photovoltaic imports under Rebate Item 460.16/8541.43/01.06. The rebate would remain in place in the interim and would only be withdrawn once domestic solar photovoltaic assembly capacity reaches 50% of local demand. The process will be subject to continued monitoring and stakeholder consultation.
In a further step aimed at strengthening domestic manufacturing, ITAC has recommended that solar panels, single axis trackers, inverters, fasteners and tower sections be considered for designation under local procurement and local content requirements in terms of the Public Procurement Act 28 of 2024. This would be subject to the finalisation of supporting regulations and completion of statutory processes led by the Department of Trade, Industry and Competition.
The Commission further determined that certain solar components, including panels, single axis trackers, inverters, fasteners and tower sections, may need to be excluded from qualification under the staged consignment policy. ITAC noted that domestic manufacturing capacity already exists in segments of these subsectors and indicated that implementation would be coordinated with the Department of Trade, Industry and Competition and the South African Revenue Service.
Finally, ITAC recommended the establishment of a dedicated committee comprising industry stakeholders under Section 23 of the International Trade Administration Act of 2002. The committee would advise the Commission on trade measures affecting the renewable energy value chain, supporting a more structured engagement between government and industry.
The Commission emphasised that these determinations remain preliminary and do not constitute final decisions. A final determination will only be made after consideration of further public comments on the proposed measures.
A Renewable review hybrid workshop on ITAC proposals will take place on 16 April 2026. Read more: Renewable_Review_Agenda_Final
Link HERE for the full proposed proposed tariffs break down
Author: Bryan Groenendaal
