MIDP is a SACU Programme designed to develop the motor vehicle and automotive component manufacturing industry in the region. The programme commenced on 1st September 1995 and has been reviewed twice since then. Participation in the MIDP is on a voluntary basis.
The Motor Industry Development Programme is designed for manufacturers of motor vehicles and components destined for export outside the SACU region. It is split into three (3) components i.e. Light Motor vehicle, Medium & Heavy motor vehicles and components manufacturing.
Objectives of the MIDP
• To improve international competitiveness of manufacturers of vehicles
• To improve adoption of technology
• To make the cost of production more affordable
• To encourage small companies
• To enhance work opportunities
The MIDP is based on customs duties and various rebates. The duties and rebates are phased down until 2009 where upon they will maintain a certain value. Customs duties are levied on imported motor vehicles and components while Import Rebate Credit Certificates (IRCCs) are rebate permits granted for the export of SACU manufactured motor vehicles, automotive components and certain type of tooling.
Light Motor Vehicle
The MIDP for light motor vehicles covers fully imported cars, minibuses and light goods / delivery vehicles (bakkies). Participating light motor vehicle manufacturers may only import completely knocked down (C.K.D) components for the manufacturer of light motor vehicle. Light motor vehicles, certain components and certain parts of tooling manufactured in the SACU, that are destined for the export market are also included in the MIDP.
Light motor vehicles or components manufactured for these vehicles as well as components and tooling that have been manufactured in or exported from an Industrial Development Zone located in the territory of any member state of the SACU are excluded from participating in the MIDP. Also racing cars, golf carts, prison vans, chain driven vehicles with motor type steering, hearses and ambulances are excluded from the MIDP.
Medium and Heavy Vehicles
The major objective of the MIDP for medium and heavy motor vehicles is to reduce the cost of manufacture and selling prices of these motor vehicles, which are mainly used as capital equipment and on the other hand to render moderate encouragement and protection for the assembly of these vehicles in SACU. Therefore, the duties on vehicles falling under the MIDP for medium and heavy vehicles are much lower than for vehicles falling under the MIDP for light motor vehicles.
The following medium and heavy motor vehicles form part of the MIDP for medium and heavy motor vehicles:
(i) Road tractors of a vehicle mass exceeding 1 600kg;
(ii) Trucks to transport goods( fitted with a load body) of a G.V.M exceeding 3 500kg;
(iii) Trucks to transport goods (but not fitted with a body) of a vehicle mass exceeding 1 600kg with a G.V.M exceeding 3 500;
(iv) Buses of a vehicle mass exceeding 2 000kg (excluding trailer buses);
(v) Chassis fitted with engines of a vehicle mass exceeding 1 600kg with a G.V.M exceeding 3 500kg.
For manufacturers to benefit under the MIDP, they have to register with the Department of Industrial Affairs and the South African Revenue Services to qualify for rebates. The manufacturer only applies for the certificates when they have repatriated the money from their exports and there has to be proof that they have actually received the money. Proof of exportation has to be through documentation including export bills of entry, invoice and bank CD forms. Payment for such goods should have been received and relevant documentation provide