As I do every year, in this article I reflect on the Department of Agriculture, Forestry and Fisheries’ (DAFF’s) notification of the applications for market access permits in terms of the World Trade Organisation (WTO) Agreement, which was published in the Government Gazette of September 16.

This annual application is required in terms of South Africa’s commitment under the WTO’s Marrakesh Agreement and relates to preferential access for select agricultural products into South Africa. The DAFF notified that market access permits will be issued for agricultural products specified in the Import Arrangements schedule, which consist of five columns, namely Tariff Heading (it should read Tariff Heading and Subheading), Description, Extent of Rebate, Annual Quota Tonnage, and Conditions for the Issuing of Permits.

The DAFF will issue permits only to importers registered with the Department of Trade and Industry (DTI) and the South African Revenue Service (Sars), proof of which is required and has to be submitted. The application should be made on an application form annexed as Annexure A (Application Form for Import Permits for the Calendar Year 2017), which can be downloaded from the Marketing Information System website (http://webapps.daff.gov.za/amis). The DAFF will, however, only accept duly completed application forms. The responsibility remains with the applicant to ensure that the application form reflects the correct information requested for the product concerned, that the application is submitted within the specified time and that the application (whether sent electronically, faxed, or delivered by hand) has been received by the DAFF’s registry officer: management support.

Conditions for the issuing of import permits include that permits for the specified products will be allocated on the basis of the preferential market access permit allocation points system which takes into account the following variables: the broad-based black economic-empowerment (BBBEE) status of applicants, which must be corroborated by an accredited verifications agency; the market share of applicants, derived from historical data for the past three years (2013, 2014 and 2015); the quota applied for; the number of applicants; and the total quota available for specific products. A valid Sars tax clearance certificate is compulsory, and 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. Applicants are also required to attach Sars’ power of attorney letter, which will enable the DAFF to collect information from Sars for audit purposes. (If my memory serves me right, owing to an amendment to the Customs and Excise Act of 1964, the DAFF is able to collect such information as a matter of course.)

Products imported under market access rebate permits are for consumption in South Africa only, and not in the rest of the Southern African Customs Union. If the market share for a particular applicant exceeds the limit for dominant firms contemplated according to the Competition Act of 1998, the DAFF can adjust the allocation formula to create fair competition in that industry or sector.

Applicants registered as joint ventures, mergers, consortia, holding companies or other similar business arrangements are not allowed to apply separately from their subsidiaries, minority shareholders or divisions for the same product, as this will establish an unfair advantage over other applicants.

An import permit is not free, it comes at a cost. A fee of R820 per permit is payable for annual permits, as well as lost permits and replacement permits issued until March 31, 2017. A 50% administration fee will be charged on any incomplete application form. Application forms must be accompanied by proof of payment, such as a bank deposit slip or a cashier receipt, and payments should be made for the application period. No payments should be made in advance for another period.

Applications for market access permits issued on a quarterly basis must be submitted during the following time periods: for the first quarter of the quota, valid for importation during the period January 1, 2017, to April 30, 2017 – within four weeks from September 16; for the second quarter of the quota, valid for importation during the period April 1, 2017, to July 31, 2017 – from February 1 to 28, 2017; for the third quarter of the quota, valid for importation during the period July 1, 2017, to October 31, 2017 – from May 1 to 31, 2017; and for the last quarter of the quota, valid for importation during the period October 1, 2017, to January 31, 2017 – from August 1 to 31, 2017.

Applications for market access permits issued on a half-yearly basis must be submitted during the following periods: for the first half of the quota, valid for importation during the period January 1, 2017, to June 30, 2017 – within four weeks from September 16; for the second half of the quota, valid for importation during the period July 1, 2017, to December 31, 2017 – from May 1 to 31, 2017.

Applications for market access permits issued on an annual basis for the period valid from January 1, 2017, to December 31, 2017, must be submitted within four weeks from September 16.

The notice contains a number of definitions, namely: AgriBEE is a sector code, as defined in the Broad-Based Black Economic Empowerment Act of 2003 (as amended to BBBEE Amendment Act of 2013; AgriBEE scorecard means the broad-based BEE scorecard for the agricultural sector published in the Government Gazette on December 28, 2012; exempted microenterprise means an entity with an annual turnover of less than R5-million; large enterprise means an entity with an annual turnover of R35-million and above; and qualifying small enterprise means a qualifying small entity that qualifies for measurement under the qualifying small enterprise scorecard and with an annual turnover of between R5-million and R35-million.

In its ‘general’ commentary, the DAFF concludes that applicants must return all expired permits within 30 days after the date of expiry. Applicants who do not return their expired permits timeously will not be considered for the granting of permits.

The notice of September 16 replaces all previous notices regarding procedures for the application, administration and allocation of market access permits under the WTO Marrakesh Agreement on market access.