PRESENTATION ON TRADE INCENTIVES DIRECTORATE MARKETING INCENTIVES BY

PRESENTATION ON TRADE INCENTIVES DIRECTORATE: MARKETING

INCENTIVES BY GOVERNMENT AGRICULTURAL SECTOR WITH REGARD 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. 2

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) - 50% MFN (permits issued annually and will Quota 53 445. 5 tons be valid for 12 months. Mixtures of fruit-Quota 23 251 tons 3 Fruit Juices: orange juice –Quota 910 tons 50% MFN (permits issued annually and Pineapple juice –Quota 4 550 tons valid for 12 months. Apple juice – Quota 1 950 tons Red & White Wine 100% MFN (permits issued annually and Quota 50 492 000 liters valid for 12 months.

COUNTRIES EXPORTED TO 4 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

SAVINGS Exports: 5 Wines R 63. 7 Mil. Pineapple juice R 18. 1 Mil. Apple juice R 1. 1 Mil. Canned fruit (Pears, apricots and peaches) R 44. 5 Mil. Mixtures of fruit R 5 Mil. Orange juice R 1 Mil.

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. 6

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 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% Vegetables 7

VALUE ON TRADE INCENTIVES IMPORT SAVINGS IN 2008 8 MEAT OF BOVINE ANIMALS 8874 TONS (8% - 26%) R 7. 8 MIL. MEAT OF SHEEP 1622 TONS (21% - 27%) R 6. 5 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 . 8 MIL. TOBACCO 16773 TONS (15%- 6. 2%) R 11. 67 MIL. BUTTER 1167 TONS (15. 8%) R . 376 MIL. FOOD PREPARATIONS 3109 TONS (7. 4%) R 3. 6 MIL.

CONDITIONS FOR THE ISSUING OF IMPORTS AND EXPORTS PERMITS A. Permits for the products will be allocated on the basis of the following categories; ü 70% to historical importers and exporters. ü 10% to BEE importers and exporters. ü 20% to the SMME and new importers and exporters. B The allocation of quotas for permits will be done as follows: ü 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. ü BEE importers and exporters either on an equal basis or as a historical importer or exporter whichever will enhance government policy for BEE development. 9 ü Importers and Exporters in the SMME and new importers and exporters category on an equal basis.

PROCEDURES TO PAY IMPORT AND EXPORT PERMIT ü Payment of a tariff of R 395, 00 permit will be payable for permits issued for annual permits, as well as lost permits and replacement permits issued. ü All application forms to be accompanied by proof of payment (bank deposit slip or cashier receipt). ü Payment to Department of Agriculture, Forestry & Fisheries bank account OR Payment in cash: Department of Agriculture’s cashier. ü 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. ü Details are website: www. daff. gov. za 10

COMPLIANCE TO BEE CRITERIA IN TERMS OF AGRI - BEE CHARTER Compliance to BEE criteria in terms of Agri-BEE Charter for Agriculture ü 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. ü 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. ü BEE verification certificates can only be issued by an Accredited Verification Agency. 11

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: Jan. K@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: Deon. K@daff. gov. za WEBSITE: http: //www. daff. gov. za 12 THANK YOU