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  • News
    • All
    • Crops
    • Diary
    • Fresh Produce
    • Game & Wildlife
    • Livestock
    At least 3 kg of food grown in Mozambique’s fields is lost due to inefficient processing, transportation, and storage-World Bank

    A change to hotter conditions is a looming challenge in the agricultural sector in the Southern African region

    AfDB commits $10 billion to fight food insecurity

    AfDB commits $10 billion to fight food insecurity

    Natafim SA expands drip-line manufacturing plant

    Natafim SA expands drip-line manufacturing plant

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Farming in South Africa; Six Things That Need Urgent Attention in 2023

    Farming in South Africa; Six Things That Need Urgent Attention in 2023

    Macfrut 2023,Turkey to participate in International Blueberry Days

    Macfrut 2023,Turkey to participate in International Blueberry Days

  • Africa
    AfDB commits $10 billion to fight food insecurity

    AfDB commits $10 billion to fight food insecurity

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Africa’s Vast Arable Land Underutilised for Cash and Food Crops

    Africa’s new agriculture pledge on the cards

    Africa’s new agriculture pledge on the cards

    Agricultural machinery: High demand on the world market

    Agricultural machinery: High demand on the world market

    EIMA International 2022, a Global Event Returns

    EIMA International 2022, a Global Event Returns

    2026 declared World Year of Pastoralism

    2026 declared World Year of Pastoralism

  • Company
    Norway pledges to build resilience of small aquaculture farmers in East and Southern Africa

    Norway pledges to build resilience of small aquaculture farmers in East and Southern Africa

    Tropical Cyclone Ana: WFP ready to provide food and logistics support for rescue and relief operations

    Tropical Cyclone Ana: WFP ready to provide food and logistics support for rescue and relief operations

    Mozambique authorities seek to combat biodiversity devastation by clamping on illicit fishing

    Mozambique authorities seek to combat biodiversity devastation by clamping on illicit fishing

    World Bank, UN launch programme to help Mozambique improve forestry management

    World Bank, UN launch programme to help Mozambique improve forestry management

    Basis of the Nampula economy calls for a re-orientation of efforts towards the most profitable cash crops, Says Nyusi

    Basis of the Nampula economy calls for a re-orientation of efforts towards the most profitable cash crops, Says Nyusi

    Sporadic rains worry Zambezi farmers

    UN announces US$1.2mln animal health programme for Mozambique

  • International
    Macfrut 2023,Turkey to participate in International Blueberry Days

    Macfrut 2023,Turkey to participate in International Blueberry Days

    First Special Agriculture Industrial Zone launched in Mozambique

    EIMA 2022: Unlocking the growth potential of Africa’s Agribusiness

    Agricultural machinery: High demand on the world market

    Agricultural machinery: High demand on the world market

    Italian industry Growing Turnover despite the Economic Situation

    Italian industry Growing Turnover despite the Economic Situation

    EIMA International 2022, a Global Event Returns

    EIMA International 2022, a Global Event Returns

    African women playing a critical role in local economic development

    Lusophone countries benefit from Africa Investment Forum

  • Markets
    It is through collective efforts and pursuit of mutual agreements and regional approaches and strategies that SADC can fully address national and intercountry investments on agriculture

    It is through collective efforts and pursuit of mutual agreements and regional approaches and strategies that SADC can fully address national and intercountry investments on agriculture

    Africa’s local ownership drive must balance foreign investment

    President Nyusi reminds investors of the agricultural opportunities available in Mocuba District

    Russia-Ukraine war poses upsides risks on African agriculture: Economist

    Russia-Ukraine war poses upsides risks on African agriculture: Economist

    Mozambique Fisheries on high vigilance following outbreak of fish disease in Malawi

    Mozambique Fisheries on high vigilance following outbreak of fish disease in Malawi

    Govt’s initiative to boost cotton and cashew income

    Govt’s initiative to boost cotton and cashew income

    Maize planter calibration to improve your profitability

    Maize planter calibration to improve your profitability

  • Equipment
    IMPROVING WATER QUALITY TO ENSURE SUCCESS OF BROILER BUSINESS

    IMPROVING WATER QUALITY TO ENSURE SUCCESS OF BROILER BUSINESS

    AWARD targets to improve African smallholders’ livelihoods

    AWARD targets to improve African smallholders’ livelihoods

    Agricultural machinery: High demand on the world market

    Agricultural machinery: High demand on the world market

    African women playing a critical role in local economic development

    Lusophone countries benefit from Africa Investment Forum

    President Nyusi excited about the prospects the new vegetable oil factory brings

    President Nyusi excited about the prospects the new vegetable oil factory brings

    Russian company to make a humanitarian fertilisers shipment to Africa

    Russian company to make a humanitarian fertilisers shipment to Africa

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SACU countries to pay for duty-free wheat quota

Ian by Ian
March 25, 2021
in Business, Editor picks, Equipment
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After the South African Revenue Services (Sars) removed the European Union free duty quota for local millers, more than 250 000 tonnes of wheat have been sitting in containers at the Durban and Richards Bay ports for about a month.

Grain importers were overjoyed to learn that Sars had gazetted the duty-free quota on February 11th. The revenue service, however, recalled it the next day without providing any explanation.

The email read: “Sars retracted the first notice published on the 11th February 2021 with ambiguous reasons that the notice, which was published, was not published and traders, therefore, could not have qualified for a preferential quota rate. As a result, it ordered traders to cancel the declarations made following the notice, which it had since removed from the web.”

According to the email, Sars also said that if millers did not cancel their orders, there would be consequences.

The quota forms part of the economic partnership agreement between the European Union and the Southern African Customs Union (SACU) countries — Botswana, Eswatini, Lesotho, Namibia and South Africa. It came into effect in 2016.

The EU guarantees Botswana, Lesotho, Mozambique, Namibia, and Eswatini 100% duty-free access to its market. It also fully or partially removes customs duties on 98.7% of South African imports.

Sam Legare, of the department of agriculture, land reform and rural development, said that for SACU countries, the agreement allows several products to be imported from the EU through the tariff-rate quota system. Some of the products are imported duty-free, while some are at a reduced import tariff.

In the case of wheat, about 300 000 tons are imported from the EU and it’s shared among SACU countries. South Africa gets 251 495 tons of the total.

Sars and the department of trade and industry administer this process on a first-come, first-serve basis, but in this instance, there was a lag.

Reportedly the two departments could not respond to questions about the delay. Instead, on Tuesday, 2 March, after numerous requests for comment, Sars published the gazette, effective from the next day.

The millers said that in attempts to resolve the problem, letters were sent to Trade and Industry Minister Ebrahim Patel and Deputy Finance Minister David Masondo. Some of the local importing traders also tried the legal route but were not successful.

One miller, who wanted to remain anonymous, said the wheat reached South Africa’s shores on 9 February, but, because of the delay, millers had to either wait or import the duty-free wheat at a tariff of R102.60 a tonne.

Some importers paid the tariffs to ensure they didn’t run out of wheat. Others could not.

The millers said everyone complied with Sars’s request to cancel products cleared on duty-free.

This week, before Sars gazetted the quota, the millers said that 251 4950 tons of wheat were at the ports, and some had been loaded and cleared out. This relieved space constraints the ports.

The wheat was ordered late last year for delivery in February.

The miller said the gazetting and withdrawal of the duty-free quota implied the “government is collecting duties on tonnes and millers must pay and will have to pass it [the cost] on to consumers”.

Ruan Schutte, an agricultural economist at Grain SA, said South Africa is a net importer of wheat.

The country produces roughly 50% of the amount of wheat needed and the balance is imported from countries such as Canada, the Czech Republic and Germany.

Trudi Hartzenberg, the executive director at the Trade Law Centre said that in recent years, there were instances where local exporters did not use all the quotas which the trade agreement provides for. “So we have missed out on those duty-free exports to the EU countries, which is such a pity.

“One wonders why did we not use them. Is it difficult to meet the standards requirements?”

She said the EU imposes stringent standards on specific agricultural products and if traders do not meet them, they cannot export.

Although reasons for the lag were not given, Hartzenberg said that any trade delays have consequences. Not only for the companies but the value chain, which will negatively affect the consumer.

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