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TRADE POLICY REGIME

TRADE POLICY OBJECTIVES

The Department of Trade and Industry strives to achieve the guiding objectives for trade, industrial and investment policy as outlined in the Reconstruction and Development Programmes by:

creating an environment conducive to sustainable economic growth and development
building up to the creation of 300,000 - 500,000 sustainable non-agricultural jobs per annum by 1999
significantly raising the exports of manufactured goods to maintain macro-economic balances and
substantially increasing net domestic and foreign investment in the manufacturing sector

Areas of responsibility include promoting and expanding sound foreign trade relations, promoting foreign trade, promoting and facilitating industrial investment, promoting small, medium and micro enterprises, looking after the interests of the business sector and consumers in general, initiating and enforcing trade regulations, protecting intellectual property rights and maintaining effective competition in the economy

South Africa uses import tariff protection selectively to encourage domestic and industrial development.

While import and export control on commodities is being phased out, control on certain products is still applied. Permits for goods subject to control must be applied for from the Directorate of Import and Export Control. All companies which import or export goods are also required to register with the Commissioner for Customs and Excise.

Different schedules of the Customs and Excise Act make provision for customs duties on imported products and for excise duties on a relatively limited number of locally produced products. Provision is also made for rebate and drawback of the customs and excise duty under specified circumstances. The Commissioner for Customs and Excise is responsible for the Administration of the Customs and Excise Act (91 of 1964)

DOCUMENTATION

South African procedures involves much documentation. Despite a basically standard worldwide structure, across forwarding, air, road , rail and ocean transport, customs, harbour revenue, foreign documentary and payment requirements, there are many country-specific and product-specific requirements in South Africa, especially in terms of exchange control. Some products require export permits.

Overseas business executives should approach local bodies, Chambers of Commerce, or freight forwarding and shipping companies, to help them in this respect.

TRADE POLICIES IN THE AGRICULTURAL SECTOR

AGRICULTURE

Agricultural policy is being brought into line with the objectives of the Reconstruction and Development Programme and the World Trade Organisation Tarrifs will replace quantitative import restrictions and provide some transitional protection from international competition. A Land Reform Bill was passed in 1995 which provides SA's 30,000 labour tenants the right to buy the land they occupy. Agricultural marketing is changing dramatically as powerful agricultural control boards are being dismantled and transformed to market facilitators. The South African Agricultural Union (SAAU), the National African Farmers' Union (NAFU), established in 1991, and the Farmer Foundation, created in 1992, all promote the interests of farmers in areas such as policy reform, extension services, and access to credit. Challenges to the new government include the need to:

New Challenges to the Govt in agricultural sector

Increase agricultural contribution to GDP through rural development and land reform
Redirect research and services to meet the needs of emergent farmers
Manage demand for land and financial assistance to develop a more profitable black farming sector
Accommodate GATT principles in marketing policy
Achieve household food security in rural areas.
Broaden access to agriculture and agricultural institutions

South Africa has a variety of agricultural training programmes. The country is divided into seven regions, each serving an agroecological area and each with an agricultural development institute.

The Land and Agricultural Bank provides finance on a commercial basis to South African farmers.