A critical aspect of benefiting from the Automotive Production and Development Plan (APDP) resides in the way in which OEMs and suppliers deal with the duties and incentives according to a logistics expert in a leading freight forwarding company that recovered R40-million last year for clients in the imported tyre industry alone.
Juanita Maree, a director of Savino Del Bene SA (SDBSA) says the need for making the most of the APDP to maximise efficiencies in rebates where multi-millions of rands are at stake is highlighted by reports from Naamsa that 2013 is a more challenging year for the South African automotive industry and a warning that local producers will have to improve their global competitiveness in order to secure new export contracts.
“Savino has taken the initiative in offering a specialised service to NAACAM and NAAMSA members which covers using accurate standard material declarations to unlock maximum value in Production Incentive benefits; generating 100 percent benefits with no expiries from production incentive claims, and earning maximum rebates without Customs penalties in APDP returns,” Maree points out.
“The focus of the APDP for the first time brings component manufacturers into the arena to provide cost competitive components to the Original Equipment Manufacturers (OEMs) and to develop international markets via exports. This assistance includes bill of material (BOM) formulation, Standard Material Declaration (SMD), Form C1 system and administration; and Production Incentive (PI) claims.”
Savino has established an APDP Business Unit offering a specific value proposition to the automotive and components industries which will allow clients to access the vast experience in supply chain management residing in the company. It will also provide an add-value component to up-skill employees in related transactional, operational and technical procedural instructions on APDP.
“This approach will also help clients keep overheads down in a very competitive market. They will benefit from sourcing expertise from Savino which will at the same time train an in-house team for them,” Maree says.
“We have appointed two of our top APDP specialists in Janet van der Walt and Bianca Belling to head up the team. They form a powerful combination in addressing both industry and SARS requirements providing expert knowledge to support OEM’s and help suppliers declare material content correctly while minimising duty and maximise incentives. This will be particularly useful to those in the components industry who may not yet know their way around this minefield,” she emphasises.
“There are many pitfalls in the process, well illustrated by an automotive tax specialist: ‘The APDP programme, although similar to the former MIDP, is complex as it covers various customs aspects such as duty liability, storage requirements, rebates and refunds. It is therefore important that OEMs and component manufacturers view and manage their import, storage, manufacturing and export activities holistically if they are to achieve full compliance and enjoy the benefits provided by the APDP”.
“In addition our approach goes beyond the major players in the industry and the Business Unit is equally accessible to second-tier suppliers and downstream stakeholders in the supply chain.
“The key objectives of the APDP are to improve the international competitiveness of the South African automotive industry, encourage growth through production volume and value additions, and thereby improve the industry’s current trade imbalance while to stabilising and potentially increase employment levels. Savino has aligned itself these goals in its own mission,” she concludes.
Savino Del Bene South Africa is part of a worldwide corporate network that specialises in global logistics, freight forwarding, clearing and supply chain management operating in 37 countries with facilities in America, Africa, Asia, Europe, Australia and the Indian subcontinent.