PRESENTATION ON TRADE INCENTIVES

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PRESENTATION ON TRADE INCENTIVES

DIRECTORATE MARKETING PRESENTED BY MR. DEON
KAMFER
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INCENTIVES BY GOVERNMENT WITH REGARD TO
AGRICULTURAL SECTOR

• Since 2001, the Department focuses on the
  promotion of BEEs (Black Economic Empowerment)
  and SMMEs 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 SMMEs/BEEs can participate in
  these incentives.
• The Department therefore decided to embark on an
  initiative to bring the SMMEs/BEEs 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 REBATE PERMITS TO
ENHANCE MARKET ACCESS

• 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.

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PRODUCTS TO BE IMPORTED UNDER MARKET ACCESS
OPPORTUNITIESUNDER THE WORLD TRADE 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
mission and outcome can be summarized as 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 Agricultures website
  (http//www.nda.agric.za/publications) under
  publications categories to open Government
  Gazette Notices.
• C. Workshops, road shows and EXPOs 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
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

• 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

• 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 DETAILS

• Please feel welcome to contact the following
  people for further information
• Directorate Marketing
  Assistant Director Mr. Jan Kleynhans
• Director Mr. Billy Morokolo
  Tel [phone]
• Tel [phone]
  E-mail JanK_at_nda.agric.za
• E-mail DM_at_nda.agric.za
• Fax [phone]
• Sub-Directorate Marketing Administration
• Deputy Director Mr. Deon Kamfer
• Tel [phone]
• E-mail DeonK_at_nda.agric.za
• WEBSITE http//www.nda.agric.za
• THANK YOU
•