Textiles PIP Grant Program Now Open - PI

The Production incentive program for the textiles industry (PIP) has finally resumed its activities and eligible businesses can now submit their applications.

Dectra specialises in this grant program and has a proud record of successful applications and claims since the inception of the program.

Naturally, applicants have to meet some requirements. We offer to evaluate your position free of charge and advise you in writing on each point that will or can cause your application to fail. If the outcome of our evaluation is positive, we would offer to handle your application and claims on a contingency basis.

This program does not require a BEE rating.

Below is a summary of the program and its main requirements.


Brief description of the Production Incentive Program

The PIP is one of only a handful of grant programs that allow retroactive applications. So, approved applicants can claim in respect of expenditure incurred in their previous financial year. Also, repeat applications can be submitted year after year. Note, the program was scheduled to close on 31 March 2017, unless DTI decides to extend it.

All operations falling within the clothing and textiles manufacturing sector, are eligible for the grant. This would include clothing, textiles, footwear, leather processing and leather goods manufacturing. Leather goods for the automotive industry is excluded. CMT operations also qualify. Design houses must partner with at least one CMT operation to qualify.

The grant is 100% of qualifying expenditure, but is capped. This cap is determined by the applicant’s manufacturing results of the previous financial year. It is taken as 7.5% of the value added in that year. “Value added” means Sales less Material Cost. This refers to own locally manufactured sales only. In the case of design houses the formula is expanded to take account of the CMT costs).


The grant can be used for the following purposes

1. Upgrading of existing plant and equipment

2. Developing new products

3. Acquisition of new plant and equipment which will have the effect of improving the overall competitiveness of the applicant

4. Market development (excluding normal day to day marketing expenses such as advertising) as part of a clearly defined strategy. Treasury guidelines for travel and subsistence expenditure will apply

5. Developing people

6. Optimising materials used

7. Improving manufacturing processes

8. Audit fees to meet PIP audit requirements for annual financial statements

9. Repay loans used to purchase any of the qualifying items above.

10. Pay own contribution to Competitiveness Improvement Program (CIP) Expenditure.


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Level 4 BEE Certified 100% Recognition  

Dectra is rated once per year and provides a copy of our credentials on request.

ICA - Icentive Consultants Association Member  

The ICA is a voluntary association that aims to ensure good ethical and quality services in our industry and assist in liaising with the Department of Trade and Industry on behalf of all specialists in our field. Dectra has been a member since inception of the association in 2005.

www.incentiveconsultants.co.za

SABS - ISO 9001  

Trusting us with large cash grant and subsidy claims, our clients need to be assured that our skills and procedures are of the highest standards. The ISO 9001 quality management system provides that assurance and we are proud to be certified as compliant with it.

www.sabs.co.za