National Export Advisory Council inaugurated

10th July 2015

By: Riaan de Lange

  

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The Department of Trade and Industry (DTI) announced on June 21 that Trade and Industry Minister Dr Rob Davies had inaugurated the National Export Advisory Council (NEAC) at the Team Export South Africa workshop, held in Pretoria from June 19 to 21 under the theme Export-Driven Economic Growth and Industrialisation in South Africa.

The NEAC, the oversight body responsible for high-level decision-making on export- and export-related activities, is part of the DTI’s Integrated National Export Strategy and its biannual meetings will be chaired by the Minister of Trade and Industry.

According to Davies, the NEAC will support and contribute to the realisation of government programmes and policies underpinned by the National Development Plan and New Growth Path imperatives that will lead to increased exports and employment gains.

Davies indicated that the council would enable export formations to engage with government and related agencies on export matters, including competitiveness, market access, export strategy and export plans. He added that the NEAC would facilitate the unlocking of opportunities and the removal of barriers to international trade (presumably merchandise trade), while addressing developmental issues and facilitating market access. Merchandise exports totalled R813.12-billion in 2013, increasing to R856.62-billion in 2014. The merchandise trade balance deficit increased from R158.18-billion in 2013 to R198.92-billion in 2014.

Davies also announced that R2.77-billion worth of export sales were facilitated by the DTI through selected instruments, such as trade shows, outward selling missions and investment and trade initiatives. I presume that this figure is for the 2014 calendar year. If this assumption is correct, then this amount equates to 0.32% of South Africa’s merchandise exports during 2014, excluding those from the BLNS countries of Botswana, Lesotho, Namibia and Swaziland.

According to Davies, the R2.77-billion was achieved through the schemes under Export Marketing and Investment Assistance Scheme, which partially compensate South Africa exporters’ marketing efforts to sell their products and service in foreign markets. As for the composition, 58% of the sales (R1.6-billion) were accounted for by companies from the Western Cape, with Gauteng and Mpumalanga according for 16% (R437-million) and 10% (R272-million) respectively. In the Western Cape, the sector that accounted for the highest value of sales is agroprocessing.

The Minister set an ambitious target for 2015, namely facilitating R3.5-billion worth of exports through participation in 32 trade missions and 29 national pavilions. He also announced that he had signed a memo- randum of understanding with Northern Cape MEC John Block that is aimed at facilitating the joint implementation of the key pillars of the National Exporter Development Programme, which involves, besides others, the provision of trade information, capacity building and export promotion.

Two More Members for WCO
The World Customs Organisation (WCO) announced on June 12 that Sierra Leone and Djibouti had become the 152nd and 153rd contracting parties to the Harmonised System (HS) Convention. More than 98% of international merchandise trade is classified in terms of the HS. South Africa has been an HS contracting party since January 1, 1988.

Sierra Leone has been a member of the WCO since November 6, 1975. The country’s principal export commodities are diamonds, rutile, cocoa, coffee and fish. Its principal import commodities are foodstuffs, machinery and equipment, fuels and lubricants, as well as chemicals.

Djibouti has been a member of the WCO since March 19, 2008. Djibouti is located in Eastern Africa, bordering the Gulf of Aden and the Red Sea, between Eritrea and Somalia. The country’s principal export commodities are hides and skins, coffee (in transit) and scrap metal, while its principal import commodities are foodstuffs, beverages, transport equipment, chemicals, petroleum products and clothing.

The HS Convention will enter into force in Sierra Leone on January 1, 2017, unless the country decides to specify an earlier date. Djibouti has announced that the convention will enter into force in the country on September 1 this year.

Botswana Ratifies TFA
Botswana has become the eighth World Trade Organisation (WTO) member to ratify the new Trade Facilitation Agreement (TFA). The WTO Secretariat received the country’s instrument of acceptance on June 18. The TFA will only enter into force once two-thirds of the WTO’s members have formally ratified the agreement. The other countries that have ratified the TFA are Hong Kong, Singapore, the US, Mauritius, Malaysia, Japan and Australia.

Concluded at the WTO’s 2013 Bali Ministerial conference, the TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.

Antidumping Terminations
Initial comment on the possible termination of antidumping duties on blankets; bolts and nuts of iron or steel; polyethylene terephthalate (PET); and unframed glass mirrors is due by July 27. Substantive comment on blankets is due by August 4; on bolts and nuts of iron or steel by November 6; on PET by September 4; and on unframed glass mirrors also by September 4.

Self-Adhesive Tape Application
Comment on the proposed review of the rebate item for the rebate of the customs duty on plates, sheets, film, foil and strips of polymers of propylene, biaxially orientated, for the manufacture of self-adhesive tape is due by July 31.

Furnishing Article Application
Comment on the creation of a rebate item for knitted pile fabrics, other, of 100% polyester fibres for use in the manufacture of other furnishing articles for home textiles is due by July 17.

Electric Vehicle Application
Comment on the proposed reduction in the ‘general’ rate of customs duty on diesel, petrol and electric passenger vehicles not exceeding 800 kg; diesel goods vehicles not exceeding 1 100 kg and petrol and electric goods vehicles exceeding 800 kg, from 25% ad valorem to free of customs duty is due by July 17.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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