PRESENTATION ON TRADE INCENTIVESPRESENTATION ON TRADE INCENTIVES

DIRECTORATE: MARKETING

22

INCENTIVES BY GOVERNMENT WITH REGARD AGRICULTURAL SECTOR

INCENTIVES BY GOVERNMENT WITH REGARD AGRICULTURAL SECTOR

Exports

A Trade, Development and Co-operation Agreement (TDCA) between the European Community (EC) and the Republic of South Africa has been established and came into force on 1 January 2000. This agreement provides for the establishment of a Bilateral Free Trade Area between the EC and South Africa in accordance with the World Trade Organization (WTO) rules and the strengthening of European development assistance to South Africa.

As part of the concessions provided for under the TDCA, the EC

has agreed to grant tariff preferences on limited quantities of selected products in the form of tariff quotas. Export permits will be issued for the access quantities at reduced levels of duty under the conditions set out in the Schedule.

33

PRODUCTS TO BE EXPORTED UNDER THE TRADE, DEVELOPMENT AND CO- OPERATION AGREEMENT TO THE EUROPEAN UNION ARE AS FOLLOWS:

PRODUCTS TO BE EXPORTED UNDER THE TRADE, DEVELOPMENT AND CO- OPERATION AGREEMENT TO THE EUROPEAN UNION ARE AS FOLLOWS:

PRODUCT PERCENTAGE REDUCTION AND CONDITIONS

Cut flowers, Quota 7 500 tons

100% of MFN (potential exporters must

apply to SARS on a first-come , first –

served basis).

Frozen Strawberries - Quota 325 tons 100% MFN (permits issued annually and will

be valid for 12 months.

Canned Fruit (Pears, Apricot & Peaches) -

Quota 53 445.5 tons

Mixtures of fruit-Quota 23 251 tons

50% MFN (permits issued annually and will

be valid for 12 months.

Fruit Juices: orange juice –Quota 910 tons

Pineapple juice –Quota 4 550 tons

Apple juice – Quota 1 950 tons

50% MFN (permits issued annually and

valid for 12 months.

Red & White Wine

Quota 50 492 000 liters

100% MFN (permits issued annually and

valid for 12 months.

44

COUNTRIES EXPORTED TO COUNTRIES EXPORTED TO

Austria

Lithuania

Belgium Luxembourg

Bulgaria Malta

Cyprus Poland

Czech

Republic

Portugal

Denmark Romania

Estonia Slovakia

Finland Slovenia

France Spain

Germany Sweden

Greece The Netherlands

Hungary The United Kingdom

Ireland Latvia

Italy

55

SAVINGS SAVINGS

Exports:

Wines R63.7 Mil.

Pineapple juice R18.1 Mil.

Apple juice R1.1 Mil.

Canned fruit (Pears,

apricots and peaches)

R44.5 Mil.

Mixtures of fruit R5 Mil.

Orange juice R1 Mil.

66

IMPORTS IMPORTS

In order to fulfill South Africa's commitment under the World Trade

Organization.

Marrakesh Agreement regarding market access, Market Access import permits will be issued for specified products under the conditions set out in the Schedule.

Permits will be issued only to importers in South Africa for importation into the Republic for the quantities and at the reduced levels of duty.

77

PRODUCTS TO BE IMPORTED UNDER MARKET ACCESS OPPORTUNITIESUNDER THE WORLD TRADE ORGANIZATION (WTO) ARE AS FOLLOWS:

PRODUCTS TO BE IMPORTED UNDER MARKET ACCESS OPPORTUNITIESUNDER THE WORLD TRADE ORGANIZATION (WTO) ARE AS FOLLOWS:

PRODUCT APPLICATION PERIOD SAVING PER PRODUCT

Meat of Bovine Animals Quarterly 8% - 26%

Meat of Sheep Quarterly 21% - 27%

Milk Powder Half yearly 77%

Buttermilk & Whey Half yearly 77%

Food Preparations Quarterly 2.6%

Butter Half yearly 63%

Cheese Half-yearly 76%

Pasta Quarterly 9.2%

Frozen and Dried

Vegetables

Half-yearly 22.6%, 10.2 %

Wheat, Maize Yearly 0%

Dried Beans, Dried fruit Quarterly 10.2%, 1.2%-5.4%

Wine and Spirits Yearly 5.6%- 21.6%

Tobacco Yearly 6.4%

88

VALUE ON TRADE INCENTIVES VALUE ON TRADE INCENTIVES

IMPORT SAVINGS IN 2008

MEAT OF BOVINE ANIMALS 8874 TONS (8% - 26%) R7.8 MIL.

MEAT OF SHEEP 1622 TONS (21% - 27%) R 6.5 MIL.

MILK POWDER 11063 TONS (15% - 10.2%) R 4.5 MIL.

DRIED BEANS 583 TONS (40% - 32.6%) R 0.86 MIL.

PASTA 1749 TONS (20%- 9.2%) R 1.267 MIL.

FROZEN VEGGIES 4470 TONS (19,2%) R .8MIL.

TOBACCO 16773 TONS (15%- 6.2%) R11.67 MIL.

BUTTER 1167 TONS (15 .8%) R .376 MIL.

FOOD PREPARATIONS 3109 TONS (7.4%) R3.6 MIL.

99

CONDITIONS FOR THE ISSUING OF IMPORTS AND EXPORTS PERMITS

CONDITIONS FOR THE ISSUING OF IMPORTS AND EXPORTS PERMITS

A. Permits for the products will be allocated on the basis of the following categories;

70% to historical importers and exporters.

10% to BEE importers and exporters.

20% to the SMME and new importers and exporters .

B The allocation of quotas for permits will be done as follows:

Historical importers and exporters in proportion to the average quantity of the product concerned, imported or exported by the applicant over a 3 year period.

BEE importers and exporters either on an equal basis or as a historical importer or exporter whichever will enhance government policy for BEE development.

Importers and Exporters in the SMME and new importers and exporters category on an equal basis.

1010

PROCEDURES TO PAY IMPORT AND EXPORT PERMITPROCEDURES TO PAY IMPORT AND EXPORT PERMIT

Payment of a tariff of R395,00 per permit will be payable for permits issued for annual permits, as well as lost permits and replacement permits issued.

All application forms to be accompanied by proof of payment (bank deposit slip or cashier receipt).

Payment to Department of Agriculture, Forestry & Fisheries bank account OR Payment in cash: Department of Agriculture’s cashier.

If a permit has been lost by an applicant either in his/her possession or during the process of clearing, a replacement permit will only be issued after proof of payment for the new permit has been received.

Details are website: www.daff.gov.za

1111

COMPLIANCE TO BEE CRITERIA IN TERMS OF AGRI - BEE CHARTER

COMPLIANCE TO BEE CRITERIA IN TERMS OF AGRI - BEE CHARTER

Compliance to BEE criteria in terms of Agri-BEE Charter for Agriculture

A company or business fully owned by a black person as described in the Broad-Based Black Economic Empowerment Act, Act No. 53 of 2003, (BBBEE) qualifies as a BEE.

Companies or businesses, irrespective of the size (large, medium, small, very small or micro) have to do a proper evaluation in terms of the Agri-BEE Charter or Industry Charter to indicate their progress towards BEE compliance as at 31 October 2008.

BEE verification certificates can only be issued by an Accredited Verification Agency.

1212

CONTACT DETAILS CONTACT DETAILS

Please feel welcome to contact the following people for further information:

Directorate: Marketing Assistant Director: Mr. Jan Kleynhans

Director: Mr. Billy Morokolo Tel: (012) 319 8064

Tel: (012) 319 8455, E-mail: JanK@daff.gov.za

E-mail: DM@daff.gov.za

Fax: (012) 319 8131

Sub-Directorate: Marketing Administration

Deputy Director: Mr. Deon Kamfer

Tel: (012) 319 8070

E-mail: DeonK@daff.gov.za

WEBSITE: http://www.daff.gov.za

THANK YOU