by Frank Beeton
M
oving
atters
Frank Beeton scans the transport world for news pertinent to the Logistics Sector.
Truck Investment Scheme Emerges –
At Last!
On July 1st, 2014, the Department of Trade and Industry published a document entitled “Programme Guidelines
for the Medium and Heavy Commercial Vehicles Automotive Investment Scheme”. Comments, by interested
parties, on this 27-page MHCV-AIS document were to be submitted by 22nd July, which seemed a ridiculously
short time, given the background sketched below.
moving matters
H
owever,
it was
notable that
no public domain
comment on the
document was
evident until August
18th, when Irma
Venter of Engineering
News reported on a
brief interview with
National Association
of Automobile
Manufacturers
of South Africa
(NAAMSA) director
Nico Vermeulen.
both local consumption
and export, additional
duty-free import credits
based on the margin of
local value added, and
a minimum qualification
level of 50 000 units per
annum for participation
by registered vehicle
manufacturers.
However, the APDP was
applicable only to light
motor vehicles, effectively
those with Gross
➲ Will the MHCV-AIS bring more truck
Vehicle Mass ratings not
assembly operations to South Africa?
exceeding 3 500 kg. The
only provision that was
By way of
specifically applicable to
background, it will be remembered that, on January
heavier vehicles with GVM ratings in excess of 3½ tons (i.e
1st, 2013, the Automotive Production and Development
Medium, Heavy and Extra-Heavy Commercial Vehicles and
Programme (APDP) took effect, replacing the Motor Industry
Buses) was that allowing component manufacturers to claim
Development Programme (MIDP) that had run since
a production incentive on local parts manufactured for these
September, 1995.
vehicle categories. Even though the MIDP had been officially
terminated, the applicable import duty levels that prevailed
This new programme was intended to place a greater
under that regime for medium/heavy vehicles, i.e. 20% for
emphasis on volume and employment growth, whereas its
Completely Built Up (CBU) vehicles, zero duty for Completely
predecessor concentrated on improving the international
Knocked Down (CKD) components (including Semi-Knockedcompetitiveness of the local vehicle manufacturing industry.
Down vehicles) and 15% for Imported Medium/Heavy
The APDP is a voluntary participation programme, made up
Commercial Vehicle tyres, were continued.
of four main elements, i.e. Import Duty, a Volume Assembly
Allowance, a Production Incentive, and the Automotive
The newly-announced MHCV-AIS is a sub-component of