Infant Industry Protection

Infant Industry Protection (IIP) is a temporary measure in the form of additional customs duty, intended to enable newly established industries in the lesser developed member states to withstand competition from other producers in or outside the Common Customs Area. Protection is afforded to an infant industry for a period of 8 years. IIP remains an important instrument to safeguard the survival of industries in Botswana, Eswatini, Lesotho and Namibia (BELN) countries against industry in the Republic of South Africa (RSA) and outside the Southern African Customs Union (SACU).

Criteria Used for Infant Industry Protection (IIP)

• The infant industry should have been established in Botswana for not more than 8 years (not all companies less than 8 years will qualify);
• Demonstrate potential for growth (growth strategy in place);
• Demonstrate potential for employment retention or creation;
• Volume of the competing imports and the effect of the competing imports on prices in the domestic industry for like products ;
• The consequent impact of these competing imports on domestic producers of such products;
• Whether imports are entering at prices that will have a significant depressing or suppressing effect on domestic prices, and would likely increase demand for further imports; and
• Issues relating to the production capacity and the market share of the local producer to ascertain that the consumers are not going to be significantly affected by the decision.