PRESENTATION ON TRADE INCENTIVESPRESENTATION ON TRADE INCENTIVESPRESENTATION ON TRADE INCENTIVESPRESENTATION ON TRADE INCENTIVES

DIRECTORATE: MARKETING

PRESENTED BY: MR. DEON KAMFER

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INCENTIVES BY GOVERNMENT WITH REGARD INCENTIVES BY GOVERNMENT WITH REGARD TO AGRICULTURAL TO AGRICULTURAL SECTOR

INCENTIVES BY GOVERNMENT WITH REGARD INCENTIVES BY GOVERNMENT WITH REGARD TO AGRICULTURAL TO AGRICULTURAL SECTOR

Since 2001, the Department focuses on the promotion of BEE’s (Black Economic Empowerment) and SMME’s in agriculture and the improvement of access to domestic as well as international markets with a focus on the previously disadvantaged areas and special provision has been made that SMME’s/BEE’s can participate in these incentives.

The Department therefore decided to embark on an initiative to bring the SMME’s/BEE’s into the mainstream of trade activities.

The mission of the Directorate is inter alia:To implement trade measures in terms of treaties through

the administration on permits, quotas and schemes.The Directorate: Marketing is routinely involved in the

administration and issuing of negotiated market access import and export permits for a range of agricultural products.

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ISSUING OF IMPORT, EXPORT REBATEISSUING OF IMPORT, EXPORT REBATE PERMITS TO ENHANCE MARKET ACCESSPERMITS TO ENHANCE MARKET ACCESS

ISSUING OF IMPORT, EXPORT REBATEISSUING OF IMPORT, EXPORT REBATE PERMITS TO ENHANCE MARKET ACCESSPERMITS TO ENHANCE MARKET ACCESS

The incentives by Government to achieve the mission and outcome can be summarized as follows:

A. IMPORT PROCEDURES :(i) Market access opportunities under the World Trade Organization

(Marrakech Agreement) specifies products than can be imported at a reduced rate of duty subject to a rebate permits issued by the Department. Any person interested in importing any of the products listed below must apply to the Department.

(ii) Rebate permits for the importation of natural honey under the tariff heading 04.09 which must be repacked in immediate packing of less than 1000 grammes, will be issued by the Department;

(iii)Administrative Fee of R 350.00.

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

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

PRODUCT TARIFF HEADING

Meat of bovine animals 02.01/02.02

Meat of sheep 02.04

Milk powder 04.02

Buttermilk 04.03

Whey, 04.04

Butter, food preparations 04.05, 21.06

Cheese, pasta 04.06, 19.02

Dried vegetables, dried chickpeas

07.012, 07.03

Dried beans, dried fruit

Wine of fresh grapes

07.13, 08.13

22.04 – 22.08

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The incentives by Government to achieve the The incentives by Government to achieve the mission and outcome can be summarized as mission and outcome can be summarized as follows:follows:

The incentives by Government to achieve the The incentives by Government to achieve the mission and outcome can be summarized as mission and outcome can be summarized as follows:follows:

B. EXPORT PROCEDURES:• Export procedures in terms of the Trade Development and Co-operation

Agreement (TDCA) between the European Union (EU) and the Republic of South Africa. The concessions provided in terms of this agreement specifies tariff preferences on limited quantities of selected products in the form of tariff quotas that can be exported subject to an export permit issued by the Department. Any person interested in exporting any of the products listed below must apply to the Department.

In order to achieve these incentives, General Notices will be:• Published in the Government Gazette, and will include detailed information

regarding the procedures for the submission of applications for the above-mentioned incentives;

• Placed on the Department of Agriculture’s website (http://www.nda.agric.za/publications) under “publications categories” to open “Government Gazette Notices”.

C. Workshops, road shows and EXPO’s will be arranged on a regular basis to inform potential importers and exporters of the various trade

agreements and of the administrative procedures required in applying for allocation quotas.

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DEVELOPMENT AND CO-OPERATION AGREEMENT TO THE EUROPEAN UNION ARE AS FOLLOWS:

DEVELOPMENT AND CO-OPERATION AGREEMENT TO THE EUROPEAN UNION ARE AS FOLLOWS:

PRODUCT TARIFF HEADING

Cheese, Cut Flowers, Proteas

04.06, 06.03

(Potential exporters must apply to Customs and Excise- SARS)

Frozen Strawberries 08.11

Canned Fruit

(pears, apricot & peaches)

20.08

Fruit Juices: Orange juice

Pineapple juice

Apple juice

20.09

Sparkling Wine 2204.01.19/99

Red & White Wine 2204.21

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VALUE ON TRADE INCENTIVES VALUE ON TRADE INCENTIVES

IMPORT SAVINGS IN 2007 :

MEAT OF BOVINE ANIMALS 8874 TONS (40%/20%) R15.7 MIL

MEAT OF SHEEP 1622 TONS (40%/16%) R 4.6 MIL

DRIED BEANS 11063 TONS (15%/5%) R 2.4 MIL

FROZEN VEGGIES 583 TONS (40%/5.5%) R 0.6 MIL

PASTA 1749 TONS (20%/11%) R 1.0 MIL

TOBACCO 16773 TONS (15%/8.5%) R9.9 MIL

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VALUE OF TRADE INCENTIVES VALUE OF TRADE INCENTIVES

EXPORTS:

PINEAPPLE JUICE (EXAMPLE) BENEFIT 50 MFN ON A QUOTA OF 4 340 TONS EU ALLOCATION 2 190 TONS NORMAL EXPORTS 500 TONS TOTAL EXPORTS 2 690 TONS VALUE IN US DOLLARS $2 349 150 VALUE IN RANDS R15 692 322 DUTY BASED ON 7.9% $185 582 DUTY BASED ON 15.2% $357 070 SAVINGS FOR CUSTOMERS USD $171 488 SAVINGS FOR CUSTOMERS RANDS R 1 145 539

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CONTACT DETAILSCONTACT DETAILS CONTACT DETAILSCONTACT 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@nda.agric.za

E-mail: DM@nda.agric.za

Fax: (012) 319 8131

Sub-Directorate: Marketing Administration

Deputy Director: Mr. Deon Kamfer

Tel: (012) 319 8070

E-mail: DeonK@nda.agric.za

WEBSITE: http://www.nda.agric.za

THANK YOU