Marketing of Agricultural Products Act: Wine Industry: Continuation of Statutory Measure and Determination of Guideline Prices (No. R. 1013 of 2013)

MARKETING OF AGRICULTURAL PRODUCTS ACT, 1996 (ACT No. 47 OF 1996) WINE INDUSTRY: CONTINUATION OF STATUTORY MEASURES AND DETERMINATION OF GUIDELINE PRICES I, Tina Joemat-Pettersson, Minister of Agriculture, Forestry and Fisheries, acting under sections 13, 15, 18 and 19 of the Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996), hereby (a) continue the statutory measures set out in the Schedule; (b) determine that the guideline price for (i) grapes intended for the production of wine shall be R3893,00 per ton; (ii) grape juice concentrate intended for use in wine shall be 378,41 cents per litre at 17,4 degrees Balling; (iii) drinking wine shall be 425,38 cents per litre; (iv) distilling wine and wine spirit shall be 115,03 cents per litre at 10 per cent alcohol by volume; and (v) export wine shall be 425,38 cents per litre. T. JOEMAT-PETTERSSON, Minister of Agriculture, Forestry and Fisheries. 6 No. 37153 GOVERNMENT GAZETTE, 20 DECEMBER 2013 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT NOTICES GOEWERMENTSKENNISGEWINGS DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES DEPARTEMENT VAN LANDBOU, BOSBOU EN VISSERYE No. 1013 20 December 2013 SCHEDULE Definitions 1. In this Schedule any word or expression to which a meaning has been assigned in the Act shall have that meaning, and unless the context otherwise indicates "bottler" means any person who renders services in respect of bottling, stabilising, blending, filtering, labelling or storage on behalf of wine producers or wine traders, but is not registered as such; "Department" means the Department of Agriculture, Forestry and Fisheries; "drinking wine" includes grape juice used in the production of drinking wine and drinking wine used in the production of other alcoholic products; "export levy" means the statutory measure referred to in clause 8; "export wine" means drinking wine exported from the Republic of South Africa; "grapes" means grapes intended for the production of drinking wine or distilling wine; "grape juice" means grape juice and grape juice concentrate intended for use in drinking wine or other alcoholic products; "grape producer" means any producer of grapes intended for the production of drinking wine or distilling wine; "in bulk" means a container of more than five litres; "information levy" means the statutory measure referred to in clause 9; "registration measure" means the statutory measure referred to in clause 5; "research levy" means the statutory measure referred to in clause 7; "returns measure" means the statutory measure referred to in clause 6; "SAWIS" means the South African Wine Industry Information and Systems, a non-profit seeking company (NPC) (Registration number 1999/016278/08); "statutory measure" means (a) export levy; (b) registration measure; (c) research levy; (d) records and returns measure; (e) transformation levy; and (f) information levy. "the Act" means the Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996); "transformation levy" means the statutory measure referred to in clause 10; "vines" means vines intended for the production of grapes; "wine exporter" means any person who exports drinking wine who is not registered as a wine producer or wine trader; STAATSKOERANT, 20 DESEMBER 2013 No. 37153 7 This gazette is also available free online at www.gpwonline.co.za "wine producer" means any person who crushes grapes and who is not registered as a wine trader; "wine spirit" means any spirit derived from wine, wine lees or husks; "WINETECH" means the Wine Industry Network of Expertise, Technology and Transformation, a not for profit association; "wine trader" means any person not registered as a wine producer who purchases or otherwise acquires (a) grapes; (b) drinking wine, distilling wine or wine spirit, in bulk from a wine producer; and "WOSA" means Wines of South Africa, a non-profit seeking company (NPC) (Registration number 2006/005074/08). Purpose and aims of continuation of statutory measures and the relation thereof to the objectives of the Act 2. (1) (a) The purpose and aims of the registration measure are to compel the parties set out herein to register with SAWIS. Registration is necessary to assist SAWIS in ensuring that continuous, timeous and accurate information relating to the products defined, is available to all role players. Market information is deemed essential for all role players in order for them to make informed decisions. By combining compulsory registration with the keeping of information and the rendering of returns on an individual basis, market information for the whole of the industry can be processed and disseminated and will form the basis for the collection of levies. (b) The continuation of the registration measure will assist in promoting the efficiency of the marketing of products. The viability of the wine industry will, thus, be enhanced. The registration measure will not be detrimental to the number of employment opportunities or fair labour practice. (c) The registration measure will be administered by SAWIS. SAWIS will continue to implement and administer the registration measure as set out in the Schedule. (2) (a) The purpose and aims of the returns measure is to compel the parties set out herein to keep records and render returns to SAWIS. This is necessary to ensure that continuous, timeous and accurate information relating to the products defined, is available to all role players. Market information is deemed essential for all role players in order for them to make informed decisions. By prescribing the keeping of records with the rendering of returns on an individual basis, market information for the whole of the industry can be processed and disseminated. (b) The continuation of the returns measure will assist in promoting the efficiency of the marketing of products. The viability of the wine industry will, thus, be enhanced. The returns measure will not be detrimental to the number of employment opportunities or fair labour practice. Any information obtained will be dealt with in a confidential manner and no sensitive or potentially sensitive client-specific information will be made available to any party without the prior approval of the party whose rights are affected. (c) The returns measure will be administered by SAWIS. SAWIS will continue to implement and administer the returns measure as set out in the Schedule. (3) (a) The objectives of the research levy are (i) to support the wine industry with expertise, enabling it to be cost effective while producing quality wines and other grape based products through the application of environmentally friendly technologies; 8 No. 37153 GOVERNMENT GAZETTE, 20 DECEMBER 2013 This gazette is also available free online at www.gpwonline.co.za (ii) to support the training and education of individuals for the industry - at all levels in terms of skills, knowledge and insight development - in order to ensure the practical implementation of the best knowledge and most advanced technologies in viticulture, wine making and other grape based products; (iii) to establish a culture of technological innovation, to ensure the ongoing utilisation of the best technology within the industry, and to facilitate its dissemination to all the sectors of the industry; (iv) to facilitate the development of resource poor and previously disadvantaged producers and to improve their access to the industry by making leading edge appropriate technology available to such producers; (v) to establish world leadership in selected niche areas of the wine industry through WINETECH's network of scientific and technological expertise; (vi) to commission relevant and thoroughly planned research, technology development and technology transfer in the promotion of the industry's technological capabilities and in the attainment of the other objectives. (b) The research levy will not be detrimental to the number of employment opportunities or fair labour practice. (c) The research levy will be administered by WINETECH. WINETECH will continue to implement and administer the research levy as set out in the Schedule. (d) The research levy will be collected by SAWIS, who will act on behalf of WINETECH in this regard. WINETECH is the actual beneficiary of the levy who will utilise it in accordance with their business plan. (4) (a) The objective of the export levy aims at increasing the profit margin for the industry for each focus market. This promotion will enhance the image of South Africa as a quality wine producer and increase opportunities for growth in new markets. It will assist South Africa to remain competitive in the global market place. In addition, it will assist in capacity building among all exporters, in particular SMME's and BEE's, and in improving the efficiency of the export process. To last-mentioned end a portion of the levy is used to fund, maintain and further develop the Wine-on-Line system, a free, user friendly, automated export certification process. (b) The export levy will not be detrimental to the number of employment opportunities or fair labour practice. (c) The export levy will be administered by WOSA. WOSA will continue to implement and administer the export levy as set out in the Schedule. (d) The export levy will be collected by SAWIS, who will act on behalf of WOSA in this regard. WOSA is the actual beneficiary of the levy who will utilise it in accordance with their business plan. (5) (a) The information levy is needed by SAWIS to fund the registration of industry role players, and ensure the collection and dissemination of information. These measures are necessary to ensure that continuous, timeous and accurate information relating to various products in the wine industry, is available to all role players in order for them to make informed decisions. (b) The information levy will not be detrimental to the number of employment opportunities or fair labour practice and is a necessity in view of the registration and returns measures. (c) The information levy will be administered by SAWIS. SAWIS will continue to implement and administer the information levy as set out in the Schedule. STAATSKOERANT, 20 DESEMBER 2013 No. 37153 9 This gazette is also available free online at www.gpwonline.co.za (6) (a) The objective of the transformation levy is to, within the scope of Broad-based Black Economic Empowerment, facilitate economic and social development and transformation in the wine industry through targeted projects for economic empowerment and development, social development and upliftment and human resources development and training. (b) The transformation levy will not be detrimental to the number of employment opportunities or fair labour practice. (c) The transformation funds (20% of statutory levies collected), will be pooled and a Transformation Committee be appointed to decide on the allocation of transformation funds. (d) The transformation levy will be collected by SAWIS, who will act on behalf of the Transformation Committee in this regard. Products to which statutory measures apply 3. (1) The registration measure shall apply to grapes, grape juice, drinking wine, distilling wine and wine spirit. (2) The returns measure shall apply to vines, grapes, grape juice, grape juice concentrate, drinking wine, distilling wine and wine spirit. (3) The research levy shall apply to grapes, grape juice concentrate, drinking wine, distilling wine and wine spirit. (4) The information levy and transformation levy shall apply to grapes, grape juice concentrate and drinking wine. (5) The export levy shall apply to export wine. Area in which statutory measures shall apply 4. The statutory measures shall apply in the geographical area of the Republic of South Africa. Registration measure 5. (1) (a) All bottlers, grape producers, grape juice producers, wine exporters, wine producers and wine traders shall register with SAWIS. (b) A person shall have a choice to register as either a wine producer or wine trader, but not both. (c) A person who is a grape producer as well as a wine producer or wine trader shall register as a grape producer and as a wine producer or wine trader. (d) Application for registration shall (i) be made within 30 days of becoming a party as contemplated in subclause (1); (ii) be made on the application form obtainable free of charge from SAWIS; (iii) be submitted, when forwarded by post, to SAWIS, P.O. Box 238, Paarl, 7620; (iv) when delivered by hand, be delivered to SAWIS, Main Road 312, Paarl; 10 No. 37153 GOVERNMENT GAZETTE, 20 DECEMBER 2013 This gazette is also available free online at www.gpwonline.co.za (v) when sent by telefax, be addressed to (021) 8711360; (vi) when submitted electronically, be sent to the address and in the format obtainable from SAWIS. Returns measure 6. (1) All bottlers, grape producers, wine exporters, wine producers and wine traders shall keep such records and render the returns as may be required by SAWIS relating to (a) vines; (b) grapes; (c) grape juice, grape juice concentrate, drinking wine, distilling wine and wine spirit produced, received, stored, sold, exported or otherwise utilised. (2) The Department shall render a copy of all export documents required by SAWIS or furnish information required by SAWIS regarding exports within the period specified in subclause (4). (3) The records referred to in subclause (1) shall (a) be recorded on a computer or with ink in a book; (b) be kept at the registered premises of the person required to keep it for a period of at least three years. (4) The returns referred to in subclause (1) shall be rendered on forms obtainable free of charge for this purpose from SAWIS within 15 days after the end of each calendar month and shall (a) be submitted, when forwarded by post, to SAWIS, P.O. Box 238, Paarl, 7620; (b) when delivered by hand, be delivered to SAWIS, Main Road 312, Paarl; (c) when sent by telefax, be addressed to (021) 8711360; (d) when submitted electronically, be sent to the address and in the format obtainable from SAWIS. STAATSKOERANT, 20 DESEMBER 2013 No. 37153 11 This gazette is also available free online at www.gpwonline.co.za Research levy 7. (1) A research and development levy is hereby continued to be imposed on (a) (b) (c) (d) grapes; grape juice concentrate; drinking wine; distilling wine; and (e) wine spirit. (2) The amount of the research and development levy shall (a) in the case of grapes, be (i) (iv) R17.01 per ton for the period 1 January 2014 to 31 R18.27 per ton for the period 1 January 2015 to 31 R19.67 per ton for the period 1 January 2016 to 31 R21.14 per ton for the period 1 January 2017 to 31 (b) in the case of grape juice concentrate, be (i) 2,43 cent per litre 31 December 2014; (ii) 2,61 cent per litre 31 December 2015; (iii) 2,81 cent per litre December 2014; December 2015; December 2016; and December 2017; at 17,4 degrees Balling for the period 1 January 2014 to at 17,4 degrees Balling for the period 1 January 2015 to at 17,4 degrees Balling for the period 1 January 2016 to 31 December 2016; and (iv) 3,02 cent per litre 31 December 2017; at 17,4 degrees Balling for the period 1 January 2017 to (c) in the case of drinking wine, be (i) 2,43 cent per litre for the period 1 January 2014 to 31 December 2014; (ii) 2,61 cent per litre for the period 1 January 2015 to 31 December 2015; (iii) 2,81 cent per litre for the period 1 January 2016 to 31 December 2016; and (iv) 3,02 cent per litre for the period 1 January 2017 to 31 December 2017; and (d) in the case of distilling wine and wine spirit, be (i) (ii) 2,10 cent per litre at 10 per cent to 31 December 2014; 2,25 cent per litre at 10 per cent to 31 December 2015; (iii) 2,42 cent per litre at 10 per cent to 31 December 2016; and alcohol by volume for the period 1 January 2014 alcohol by volume for the period 1 January 2015 alcohol by volume for the period 1 January 2016 12 No. 37153 GOVERNMENT GAZETTE, 20 DECEMBER 2013 This gazette is also available free online at www.gpwonline.co.za (3) (iv) 2,60 cent per litre at 10 per cent alcohol by volume for the period 1 January 2017 31 December 2017. The research and development levy shall (a) be payable by a wine producer in respect of (i) drinking wine and wine spirit packaged in containers of 5 litres or less; (ii) wine spirit sold to another wine producer; (iii) wine spirit produced by a wine producer and used for fortification of that wine producer's own drinking wine; and (b) be payable by a wine trader in respect of (i) grapes purchased; (ii) grapes used for production of his or her own drinking wine or distilling wine; (iii) grape juice concentrate, drinking wine, distilling wine and wine spirit, in containers of more than 5 litres, acquired from a wine producer. (4) The research and development levy shall be payable to SAWIS, acting on behalf of WINETECH, in accordance with subclause (5). (5) (a) Payment of the research and development levy shall be made not later than sixty days following the month of delivery of a quantity of grapes, grape juice concentrate, drinking wine, distilling wine or wine spirit sold, purchased or otherwise acquired. (b) Payment shall be made by means of a cheque or electronic transfer in favour of SAWIS, and shall (i) when paid by cheque, be addressed to SAWIS, P 0 Box 238, Paarl, 7620; (ii) when electronically transferred, be paid to the bank account obtainable from SAWIS on request. Export levy 8. (1) A wine export generic promotion levy is hereby continued to be imposed on export wine. (2) The amount of the wine export generic promotion levy shall (a) in the case of export wine in bulk, be (i) 8,52 cent per litre for the 0,47 cent per litre shall be Line system; (ii) 9,12 cent per litre for the 0,47 cent per litre shall be Line system; (iii) 9,77 cent per litre for the 0,47 cent per litre shall be Line system; and period 1 January 2014 to 31 December 2014, of which used to fund, maintain and further develop the Wine-on period 1 January 2015 to 31 December 2015, of which used to fund, maintain and further develop the Wine-on period 1 January 2016 to 31 December 2016, of which used to fund, maintain and further develop the Wine-on STAATSKOERANT, 20 DESEMBER 2013 No. 37153 13 This gazette is also available free online at www.gpwonline.co.za (3) (4) The wine export generic promotion levy shall be payable to SAWIS, acting on behalf of WOSA, in accordance with subclause (5). (b) (iv) 10,47 cent per litre for the period 1 January 2017 to 31 December 2017, of which 0,47 cent per litre shall be used to fund, maintain and further develop the Wine-on Line system; and otherwise, be 11,47 cent per litre for 0,47 cent per litre shall Line system; 12,02 cent per litre for 0,47 cent per litre shall Line system; 12,60 cent per litre for 0,47 cent per litre shall Line system; and 13,20 cent per litre for 0,47 cent per litre shall Line system. the period 1 January 2014 to 31 December 2014, of which be used to fund, maintain and further develop the Wine-on the period 1 January 2015 to 31 December 2015, of which be used to fund, maintain and further develop the Wine-on the period 1 January 2016 to 31 December 2016, of which be used to fund, maintain and further develop the Wine-on the period 1 January 2017 to 31 December 2017, of which be used to fund, maintain and further develop the Wine-on The wine export generic promotion levy shall paid by the exporter. (5) (a) Payment of the wine export generic promotion levy shall be made not later than 60 days following the month of export. (b) Payment shall be made by means of a cheque or electronic transfer in favour of SAWIS, and shall (i) when paid by cheque, be addressed to SAWIS, P.O. Box 238, Paarl, 7620; (ii) when electronically transferred, be paid to the bank account obtainable from SAWIS on request. (6) WOSA may, in accordance with criteria determined by WOSA, grant exemption from the payment of the wine export generic promotion levy for a consignment of wine exported if satisfied that such exemption will not frustrate the purpose and aims of this statutory measure. 14 No. 37153 GOVERNMENT GAZETTE, 20 DECEMBER 2013 This gazette is also available free online at www.gpwonline.co.za Information levy 9. (1) An information levy is hereby continued to be imposed on (a) (b) (C) grapes; grape juice concentrate; and drinking wine. (2) The amount of the information levy shall (3) (a) in the case of grapes, be R11.27 per ton for the period 1 R11.90 per ton for the period 1 R12.53 per ton for the period 1 R13.23 per ton for the period 1 January 2014 to 31 January 2015 to 31 January 2016 to 31 January 2017 to 31 (b) in the case of grape juice concentrate, be December 2014; December 2015; December 2016; and December 2017; (i) 1,61 cent per litre at 17,4 degrees Balling for the period 1 31 December 2014; (ii) 1,70 cent per litre at 17,4 degrees Balling for the period 1 31 December 2015; (iii) 1,79 cent per litre at 17,4 degrees Balling for the period 1 31 December 2016; and (iv) 1,89 cent per litre at 17,4 degrees Balling for the period 1 31 December 2017; and (c) in the case of drinking wine, be January 2014 to January 2015 to January 2016 to January 2017 to 1,61 cent per litre for the period 1 January 2014 to 31 December 2014; 1,70 cent per litre for the period 1 January 2015 to 31 December 2015; 1,79 cent per litre the period 1 January 2016 to 31 December 2016; and 1,89 cent per litre for the period 1 January 2017 to 31 December 2017. The information levy shall (a) be payable by a wine producer in respect of drinking wine packaged in containers of 5 litres or less; (b) be payable by a wine trader in respect of (i) grapes; (ii) grape juice concentrate in containers of more than 5 litres, acquired from a wine producer; and (iii) drinking wine in containers of more than 5 litres, acquired from a wine producer. (4) The information levy shall be payable to SAWIS in accordance with subclause (5). STAATSKOERANT, 20 DESEMBER 2013 No. 37153 15 This gazette is also available free online at www.gpwonline.co.za (5) (a) Payment of the information levy shall be made not later than sixty days following the month of delivery of a quantity of grapes, grape juice concentrate or drinking wine sold, purchased or otherwise acquired. (b) Payment shall be made by means of a cheque or electronic transfer in favour of SAWIS, and shall (i) when paid by cheque, be addressed to SAWIS, P 0 Box 238, Paarl, 7620; (ii) when electronically transferred, be paid to the bank account obtainable from SAWIS on request. Transformation levy 10. (1) An empowerment and transformation levy is hereby continued to be imposed on (a) grapes; (b) grape juice concentrate; and (c) drinking wine. (2) The amount of the empowerment and transformation levy shall (a) in the case of grapes, be (i) R2.24 per ton for the period 1 January 2014 to 31 December 2014; (ii) R2.38 per ton for the period 1 January 2015 to 31 December 2015; (iii) R2.59 per ton for the period 1 January 2016 to 31 December 2016; and (iv) R2.80 per ton for the period 1 January 2017 to 31 December 2017; (b) in the case of grape juice concentrate, be (i) 0,32 cent per litre at 17,4 degrees Balling for the period 1 January 2014 to 31 December 2014; (ii) 0,34 cent per litre at 17,4 degrees Balling for the period 1 January 2015 to 31 December 2015; (iii) 0,37 cent per litre at 17,4 degrees Balling for the period 1 January 2016 to 31 December 2016; and (iv) 0,40 cent per litre at 17,4 degrees Balling for the period 1 January 2017 to 31 December 2017; and (c) in the case of drinking wine, be (i) 0,32 cent per litre for the period 1 January 2014 to 31 December 2014; (ii) 0,34 cent per litre for the period 1 January 2015 to 31 December 2015; (iii) 0,37 cent per litre for the period 1 January 2016 to 31 December 2016; and (iv) 0,40 cent per litre for the period 1 January 2017 to 31 December 2017. 16 No. 37153 GOVERNMENT GAZETTE, 20 DECEMBER 2013 This gazette is also available free online at www.gpwonline.co.za (3) The empowerment and transformation levy shall (a) be payable by a wine producer in respect of drinking wine packaged in containers of 5 litres or less; (b) be payable by a wine trader in respect of (i) grapes; (ii) grape juice concentrate in containers of more than 5 litres, acquired from a wine producer; and (iii) drinking wine in containers of more than 5 litres, acquired from a wine producer. (4) The empowerment and transformation levy shall be payable to SAWIS, acting on behalf of the Transformation Committee which shell approve the allocation of these funds. (5) (a) Payment of the empowerment and transformation levy shall be made not later than sixty days following the month of delivery of a quantity of grapes, grape juice concentrate or drinking wine sold, purchased or otherwise acquired. (b) Payment shall be made by means of a cheque or electronic transfer in favour of SAWIS, and shall (i) when paid by cheque, be addressed to SAWIS, P 0 Box 238, Paarl, 7620; (ii) when electronically transferred, be paid to the bank account obtainable from SAWIS on request. Period of validity 11. The statutory measures shall be implemented on 1 January 2014 and lapse on 31 December 2017. STAATSKOERANT, 20 DESEMBER 2013 No. 37153 17 305846—B This gazette is also available free online at www.gpwonline.co.za