Department Of Trade And Industry Form Dtp 001

By | December 10, 2021

Department Of Trade And Industry Form Dtp 001, Industrial development is possible only if the necessary technology is at the disposal of industry. Technologies may either be developed locally or be imported. Own technology development in specific spheres offers distinct advantages, but it is a phenomenon throughout the world that countries import the major portion of their new technology requirements, since it is obviously not viable for every country to undertake research and develop technology in all fields.

Imported technology is normally paid for in the form of royalties to a foreign licensor in terms of a licence agreement, and the Exchange Control Regulations stipulate that the payment of such royalties requires approval from the Financial Surveillance Department of the South African Reserve Bank (SARB). When an agreement involves the local manufacture of products or the provision of certain services, the Department of Trade and Industry (DTI) acts as an adviser to the SARB.

A local firm that wishes to enter into a new or a substitute agreement or the extension of an existing agreement with a foreign licensor to manufacture a product in South Africa must therefore submit an application to the DTI for its consideration. Agreements with the exception of requests which include the following clauses – down payments, minimum payments, and once off payments will be considered for approval by the Department of Trade and Industry, who will communicate their decision to the licensee.

If the DTI approves the agreement, a Certificate of Approval will be issued to the licensee that will enable him to approach his banker directly for the transfer of the royalties. All agreements which contain any clauses that stipulate down payments, minimum payments and once off payments will be considered for recommendation to the SARB by the Department of Trade and Industry.

Applications should be in the form of a completed questionnaire to be submitted in duplicate – see the Annexure -together with four copies of the draft/signed agreement and amendments/addendum, if applicable.

Title :Form DTP001

Published Date:2020-04-01

Last Modified Date:2020-10-01, 09:36 PM

Category: Forms > Financial surveillance and exchange controls