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South Africa’s agricultural trade: market access permits and export quotas for 2019

South Africa’s agricultural trade: market access permits and export quotas for 2019
Photo credit: Trevor Samson | World Bank

17 Oct 2018

6 minute read

The Department of Agriculture, Forestry and Fisheries (DAFF) has issued two new notices concerning procedures for the application, administration and allocation of export quotas under the SADC-EU EPA and market access permits under the WTO Marrakesh Agreement.

Export quotas under the SADC-EU EPA

The Economic Partnership Agreement (EPA) between the Southern African Development Community (SADC) and the European Union (EU) was signed by both parties on 10 June 2016 and came into effect on 1 October 2016. The SADC-EU EPA package contains agricultural products to be exported by South Africa into the EU market under the Tariff Rate Quota (TRQ) regime. The SADC-EU EPA TRQ package offers SA enhanced market access for agricultural products.

On 8 October 2018, DAFF issued a new notice for local exporters wanting to apply for quotas to export agricultural products to the EU for 2019. Permits for exportation of any of the products specified in Table 1 on Export Arrangements, to the EU, will be issued only to exporters in South Africa registered at the Department of Trade and Industry (the DTI) and the South African Revenue Services (SARS). The export permits will be valid from 1 January 2019 until 31 December 2019.

All exporters and potential exporters will be required to comply with the following:

  1. The sanitary, phyto-sanitary and other technical requirements as stipulated by the EU; and

  2. The Rules of Origin that form part of the SADC-EU EPA preferential scheme.

Wine exporters that have obtained “Approved Exporter Status” will follow the electronic exporter to client system on Wine Online, a web-based system controlling the local export certification of liquor products. Manually-issued EUR 1 certificates (which enable importers to import products at a reduced or nil rate of import duty in terms of the SADC-EU EPA) will no longer be accepted unless they are declared on Wine Online.

Permits for the products specified will be allocated on the basis of the Preferential Market Access Permit Allocation System which takes into account the following variables:

  1. The BBBEE status of applicants – obtainable from a valid B-BEE certificate measured against Amended AgriBEE (Agricultural Black Economic Empowerment) Sector Code issued by an accredited verification agency;

  2. The market share of applicants – derived from historical export data for the past three years (2015, 2016, 2017);

  3. Quota applied for by applicants;

  4. Number of applicants; and

  5. The total quota available for the specific product.

The quantity exported by an exporter will be calculated on the basis of a detailed list of bills of entry for the product concerned submitted together with the application form, for the period stipulated for the product in column 4 of Table 1: Export Arrangements, set out per EU tariff code line. The quotas allocated to exporters will be provisional. The Department will assess the utilization rate during the quota year after which there will be re-allocation.

This notice replaces all previous notices regarding the procedures for the application, administration and allocation of export permits under the SADC-EU EPA.

Market access permits under the WTO Marrakesh Agreement

On 9 October 2018, DAFF issued a notice for South African importers wanting to import agricultural products under the World Trade Organisation (WTO) Marrakesh Agreement. Market access permits will be issued to importers for importation of specified products into the Republic of South Africa for the quantities and at the reduced levels of duty specified.

Permits for the products specified will be allocated on the basis of the Preferential Market Access Permit Allocation Points System which takes into account the following variables:

  1. The BBBEE status of applicants;

  2. The market share of applicants – derived from historical export data for the past three years;

  3. Quota applied for by applicants;

  4. Number of applicants; and

  5. The quota available.

The quantity imported by an importer will be calculated on the basis of a detailed list of bills of entry for the product concerned submitted together with the application form, for the period stipulated for the product in column 5 of the Table 1: Import Arrangements.

Products imported under the market access rebate permits are for consumption in South Africa only. If the market share for a particular applicant exceeds the limit for dominant firms contemplated in section 7(a)(c) of the Competition Act, Act 89 of 1998 as amended. The Department can adjust the allocation formula to create fair competition within that industry or sector.

This notice replaces all previous notices regarding procedures for the application, administration and allocation of market access permits under the WTO Marrakesh Agreement regarding market access.

Source Cape Chamber of Commerce and Industry
Website Visit website
Date 17 Oct 2018
  6 minute read
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