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PRESENTATION TO PORTFOLIO COMMITTEE

PRESENTATION TO PORTFOLIO COMMITTEE. LIQUOR PRODUCTS AMENDMENT BILL. LIQUOR PRODUCTS ACT, 1989. Promulgated in 1989 and Implemented in 1990 OBJECTIVES : Establishment of the Wine and Spirit Board Sale and production of certain alcoholic products

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PRESENTATION TO PORTFOLIO COMMITTEE

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  1. PRESENTATION TO PORTFOLIO COMMITTEE LIQUOR PRODUCTS AMENDMENT BILL

  2. LIQUOR PRODUCTS ACT, 1989 • Promulgated in 1989 and Implemented in 1990 • OBJECTIVES: • Establishment of the Wine and Spirit Board • Sale and production of certain alcoholic products • Composition and properties of liquor products .

  3. LIQUOR PRODUCTS ACT-CONTINUED • Labelling, Import and Export of all liquor products – except Beer and Medicine • Prohibits the use of false or misleading indications on liquor products • Establishments of Schemes • The Act does not regulate the distribution of liquor products- National Liquor Acts.

  4. Liquor Act 59 of 2003 • Repealed LIQUOR ACT 27 OF 1989 • Came into operation on 13 August 2004 • Responsibility –Department of trade and Industry. • Purpose- To provide for control over the • sale of liquor and for matters connected • therewith.

  5. LIQUOR PRODUCTS AMENDMENT BILL WHY ARE WE AMENDING? • Give effect to International obligations • Amend composition of Board Members • Production requirements for wine • Traceability

  6. Composition of board • 8 members with knowledge, skills, or expertise in • veticulture, oenology, distilling, regulatory • environment of the liquor industry • 3 officers of the Department nominated by the Minister • 1 person from the ARC • 1 person designated by Minister

  7. INTERNATIONAL OBLIGATIONS • SA/EU Wine and Spirit Agreement • MAA (Mutual Acceptance) and Labelling Agreement of the WWTG (World Wine Trade Group) to facilitate trade in wine • Protection of geographical indications in terms of • TRIPS (Agreement on Trade Related Intellectual Property Rights) • Proposed amendment- ensure that the importation of liquor products is subject to SA’s International Agreements

  8. WINE & SPIRIT BOARD • MEMBERS APPOINTED BY MINISTER ON NOMINATION • Act still refers to nomination by the Ko-operative Wijnbouwers Vereniging (KWV) • Cape Wine and Spirit Institute – speaks on behalf of producers and merchants • PROBLEM: Structural changes within the industry - No longer representative of all the participants in the Industry concerned

  9. PRODUCTION REQUIREMENTS FOR WINE • CURRENTLY – WINE GRAPES ONLY FROM VITIS VINIFERA • Internationally no longer a requirement • Villard blanc project in Northern Cape and Free State • Concept of low cost vine establishment and cultivation and fast cash flow to enable emerging farmers to easier access the wine industry on producer level

  10. PRODUCTION REQUIREMENTS FOR WINE – CONTINUED • PROPOSED AMENDMENT – WINE GRAPES FROM GENUS VITIS • Harmonize with international legislation – currently practised in USA, Australia, New Zealand • Level the playing field

  11. TRACEABILITY • Legislative requirements imposed by EU for traceability on all agricultural products • Required to address food safety concerns and ensure quick recall of products • Proposed amendment: • Lot marking of receptacles/bottles/ containers to be made obligatory • Gauging/marking of tanks

  12. PROCESSES TO DATE • LP Bill published twice for comments • Following bodies were consulted: • Wine and Spirit Board • South African Liquor Brand Owners Association (includes wholesalers like KWV, Distell, etc.) • Cooperative Winegrowers Association • WINETECH • Association for Cape Estate Owners • SAB • SA Wine Industry Council

  13. NEW PROCESS • Policy on liquor • Concerns from agriculture is food safety • Process will involve Agriculture, Health and the dti. • Policy to be finalized by end of the year • How far should we go with regard to beer especially sorghum beer • Do we include all fermented products? • Will consult broadly

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