Chapter four: Economic governance and management 132 • Tax incentives. Manufacturing companies outside the SACU region are expected to pay zero corporate tax on profits they earn from selling their products, 10 per cent preferential corporate tax on profits earned on exports within the SACU region, and normal corporate tax of 25 per cent. There is no tax deducted on dividends distributed to local or foreign shareholders by the manufacturing companies. • Financial and export incentives. Investors are also given financial and export incentives. These comprise export finance facilities; long-term loans and/or equity; unimpeded access to foreign markets; free repatriation of profits; input credit for all capital equipment and raw material inputs; and zero-rated exports under the Lesotho VAT system. The manufacturing exporters also enjoy the benefits of running bank-administered foreign currency accounts at any of the banks in Lesotho. • Lesotho Duty Credit Certificate Scheme (DCCS). Manufacturing companies are allowed to participate in the Lesotho DCCS. This is an initiative under the Textile and Clothing Industrial Development Programme whereby SACU-based exporters of textile products are given duty credits in respect of shipments to non-SACU markets. These can be used to offset the SACU Common External Tariff (CET) on imports of consumer goods. These duty credits are saleable and a large secondary market exists for them, particularly among distributors in South Africa. The requirement for participating in the scheme is that a company must manufacture within SACU and export its textile or clothing products outside the region. The scheme offers a rebate on import duty on the basis of the value of goods exported. However, the scheme has been found to contravene WTO rules governing export subsidies. Although Lesotho, as a least developed country, has so far been excluded from its prohibition, it is likely that SACU member states may bring the scheme to an end. This could cause a loss of revenue to Lesotho. • Establishment of the Commercial Court. This court was established in 2000 to deal with commercial disputes and thereby promote an investor-friendly environment which allows investors to enjoy normal commercial freedom without interference from the government. The court also provides a legal framework by affording sufficient protection to lenders against delinquent borrowers. The establishment of the court is an important step towards promoting financial stability and encouraging the extension of credit to the private sector. The court has the shortcoming that its cases must first be registered with the High Court, thus causing delays. • The Specialised Commercial Court. The observed shortcoming of the Commercial Court led the government to establish a specialised commercial court in 2008. The court is financed through the MCA. Its aim is to promote faster, fairer and less expensive resolution of commercial disputes, whether large or small. • The establishment of the OSS. This was established in 2007 to improve the business climate and to ease the process of establishing businesses in the country by consolidating services that advance business. They include issuing trade licences, residence permits, import permits and export visas from one place. It is also meant to speed up the process of importing and exporting by firms and businesses in the country.