SA Govt unveils production incentive guidelines

07 May '10

2 min read

The DTI is happy to present the Production Incentive (PI) Guidelines for 2010/11. We trust that the benefit will be such that it will contribute to the stabilisation and growth of the Clothing, Textiles, Footwear, Leather and Leather Goods sectors.

The basis of the PI, as for the Clothing & Textiles Competitiveness Improvement Programme (CTCIP), is to assist manufacturing companies in the Clothing, Textiles, Footwear, Leather and Leather Goods sectors, based in South Africa, to become world class manufacturing operations, able to compete against low cost producing countries.

The Production Incentive will be administered by the IDC and the contact details of the relevant persons are contained in the Guidelines. Please feel free to contact them should you have any queries.

You are encouraged to carefully read through the guidelines. You will find that the first stage will be for you to complete Annexure A which is the application form for the PI benefit. Those of you who completed the survey will note that it is almost exactly the same information that is required, only this time you will need to provide the supporting documentation with the application.

Once the benefit has been determined and verified by Due Diligence Consultants from the IDC, a benefit certificate will be issued to you. You can then decide how you wish to utilise it by completing Annexure B, which is referred to as the redemption application form.

Very importantly, Annexure C refers to World Class Manufacturing variables and ways of measuring them. This will form the basis of the monitoring and evaluation system and it is extremely important that you ensure that the impact of your interventions are measurable. The IDC will in due course provide more clarity on the exact definitions for calculation purposes.

Click here to view and download complete PI guidelines.

Department of Trade and Industry