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PRESENTATION ON TRADE INCENTIVES

PRESENTATION ON TRADE INCENTIVES. DIRECTORATE: MARKETING. INCENTIVES BY GOVERNMENT WITH REGARD AGRICULTURAL SECTOR.

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PRESENTATION ON TRADE INCENTIVES

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  1. PRESENTATION ON TRADE INCENTIVES DIRECTORATE: MARKETING

  2. INCENTIVES BY GOVERNMENT WITH REGARD 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 permit allocation policy makes provision for the reservation of specified percentages of the quota for SMME’s and BEE’s to enhance their participation. • 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.

  3. The incentives by Government to achieve the mission and outcome can be summarized as follows: A. IMPORT PROCEDURES : 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. 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. 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. ISSUING OF IMPORT, EXPORT REBATE PERMITS TO ENHANCE MARKET ACCESS

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

  5. 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%/24%) R 4.6 MIL. • DRIED BEANS 11063 TONS (15%/10.2%)R 2.4 MIL. • FROZEN VEGGIES 583 TONS (40%/32.6%)R 0.6 MIL. • PASTA 1749 TONS (20%/9.2%) R 1.0 MIL. • TOBACCO 16773 TONS (15%/6.2%) R9.9 MIL.

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

  7. 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 –R6.68/ $ 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

  8. 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@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

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