The schemes under Duty Credit Scheme:


The Duty Credit Scheme  is a programme based on the relief from the payment of customs duty on importation of goods when matched to equivalent goods, exported under specific conditions. In other words for every R1 of textile goods exported, the exporting party earns the right to import an equivalent product at a reduced rate of duty. The benefit earned by the exporter is determined by the degree of manufacture required to produce the finished good. For example, the benefit earned on the manufacture and export of yarn will be approximately a third of the benefit earned on the manufacture and export of a finished garment. Customs duty is a measure imposed by government to protect industry in a country or region. Therefore, as the Duty Credit Scheme is a compensation based system, it gives the exporter the opportunity to supplement its product range in the domestic market, or where the manufacturer is solely export focused, to sell the benefits which will have a positive impact on future profitability and growth of the business.