I first wrote about geographical indication, or GI, in the instalment of this column published in the June 28 to July 4, 2013, edition. Since then, five articles followed, two on Rooibos tea, two on Honeybush and one on Karoo Lamb. If the time it took to protect the first two GIs is indicative, then the article concluding Karoo Lamb should be imminent.

It is possible that you did not read any of these articles or that you require a quick refresher as to what GIs are. The most concise description of what GIs are is found in a presentation by Professor Johann Kirsten, titled ‘The need for recognition and protection of geographical indications in South Africa’. He cites three things. Firstly, mere geographical place names do not have any intellectual property (IP) rights. Secondly, GIs are IP rights, as they seek to reward the link between products, people and places that have developed over time, based on traditional practices. Thirdly, GIs are place-based names that convey the geographical origin as well as the cultural and historical identity of an agricultural product.

The GI initiative, launched in 1998, forms part of the World Trade Organisation’s (WTO’s) Trade-Related Aspects of Intel- lectual Property Rights, or Trips, agreement. This implies that, should a country classify a product as a GI, all WTO member countries would be obliged to protect it. In 2009, it was estimated that there were more than 10 000 protected GIs in the world with an estimated trade value of more than $50-billion.

An eight-page Government Gazette notice was published by the Department of Trade and Industry on February 4, dealing with the proposed prohibition of the use of certain words. This time, however, the prohibition does not relate to South Africa’s GIs but to the European Union (EU) member countries’ GIs. The 28-member EU requested the prohibition of the use of certain words in connection with any trade, business, profession or occupation, or in connection with a trade mark, mark or trade description applied to goods, other than by producers of the goods from the countries indicated in the Government Gazette.

The categories of products are fruit, vegetables and cereals (fresh or processed); cheeses; meat products; olive oil; fisheries product; beer; and other products. Interested parties are invited to comment on the notice by March 6.

Prioritised Parliamentary Bills
On February 5, the African National Congress Parliamentary caucus informed that there are 43 Bills that Parliament must pass before the elections of May 7. The caucus identified eight Bills which, it believes, Parliament should give special attention to ensure they are passed into law. Three of the prioritised Bills listed as fourth, fifth and sixth respectively are the Customs Control Bill, 2013; the Customs Duty Bill, 2013; and Customs and Excise Amendment Bill, 2013.

SARS’ SCoF Report Back
The South African Revenue Service(Sars) reported back to the Standing Committee on Finance (SCoF) on February 5, following the committee’s oral hearing of January 28. On February 7, Sars published the draft response document on the Customs Control Bill, 2014, and Customs Duty Bill, 2014; the SCoF Amendments to the Customs and Excise Amendments Bill, 2014; and the SCoF Amendments to the Customs Control Bill, 2014. It is understood that the Customs Control Bill includes a ‘fallback’ provision allowing for a return to the existing customs control system should the proposed one fail.

Vat on Electronic Services
On January 30, the National Treasury published Electronic Services Regulations for public comment, pointing out that the comments should be received by February 20. This followed Finance Minister Pravin Gordhan’s announcement when he presented the 2013 Budget that all foreign businesses supplying ebooks, music and other digital services in South Africa will be required to register as value-added tax (Vat) vendors. The regulations were put together against the backdrop of efforts, both internationally and locally, to bring cross-border ecommerce (specifically the digital economy) into the Vat regime. The current application of Vat on imports does not lend itself to effective enforcement on imported `services or ecommerce where no border posts (or parcel delivery agents, such as the Post Office) can perform the function of collecting agents, as is the case with physical goods.

As a consequence, South African consumers can buy imported digital products without paying Vat. This not only places South African suppliers of digital services at a competitive disadvantage against suppliers from abroad but also results in a loss of revenue for the fiscus.

According to the National Treasury, the Vat legislation was amended to bring the digital economy more comprehensively into the Vat net and to provide for the Minister of Finance to issue regulations prescribing imported services that will be covered by the new electronic services definition in the Vat Act. The imported services will include the supply of ebooks, emusic, efilms, software, images, games and games of chance, information system services, Internet-based auction services, maintenance services, educational services and the supply of an Internet-based auction service facility.