PRESENTATION ON TRADE INCENTIVES DIRECTORATE: MARKETING

22 INCENTIVES BY GOVERNMENT WITH REGARD AGRICULTURAL 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.

33 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 : (i)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. (ii)Rebate permits for the importation of natural honey under the tariff heading which must be repacked in immediate packing of less than 1000 grammes, will be issued by the Department; (iii) Administrative Fee of R 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 ( under “publications categories” to open “Government Gazette Notices”. under 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.

44 PRODUCTS TO BE IMPORTED UNDER MARKET ACCESS OPPORTUNITIESUNDER THE WORLD TRADE ORGANIZATION (WTO) ARE AS FOLLOWS: PRODUCTTARIFF HEADINGSAVING PER PRODUCT Meat of Bovine Animals02.01/02.028% - 26% Meat of Sheep % - 27% Milk Powder % Buttermilk % Whey, % Butter, Food Preparations04.05, % - 2.6% Cheese, Pasta04.06, % - 9.2% Frozen and Dried Vegetables07.10, %, 10.2 % Tobacco % Dried Beans, Dried fruit 07.13, %, 1.2%- 5.4% Wine and Spirits22.04 – %, 21.6%

55 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 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 TONS (15%/6.2%) R9.9 MIL.

66 PRODUCTS TO BE EXPORTED UNDER THE TRADE, DEVELOPMENT AND CO-OPERATION AGREEMENT TO THE EUROPEAN UNION ARE AS FOLLOWS: PRODUCTTARIFF HEADING Cheese, Cut Flowers, Proteas04.06, (potential exporters must apply to SARS) Frozen Strawberries08.11 Canned Fruit (pears, apricot & peaches)20.08 Fruit Juices: Orange juice Pineapple juice Apple juice Sparkling Wine /99 Red & White Wine

77 VALUE OF TRADE INCENTIVES EXPORTS:  PINEAPPLE JUICE (EXAMPLE)  BENEFIT 50 MFN ON A QUOTA OF TONS  EU ALLOCATION TONS  NORMAL EXPORTS 500 TONS  TOTAL EXPORTS TONS  VALUE IN US DOLLARS $  VALUE IN RANDS –R6.68/ $ R  DUTY BASED ON 7.9% $  DUTY BASED ON 15.2% $  SAVINGS FOR CUSTOMERS USD $  SAVINGS FOR CUSTOMERS RANDS R

88 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) Tel: (012) , Fax: (012) Sub-Directorate: Marketing Administration Deputy Director: Mr. Deon Kamfer Tel: (012) WEBSITE: THANK YOU