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  • 6.6.3-MARKET PROFILES-NON-TARIFF REQUIREMENTS IN THE DOMESTIC COTTON MARKET

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  • Non-tariff requirements in the domestic cotton market

    Chapter 6 - Market profiles - South Africa 

     
     
    The Agricultural Pest Act of 1983 and Government Notice 18405/1997 control the import of cotton into South Africa. The National Department of Agriculture administers the system.

    Cotton requires an import permit issued by the Directorate: Plant and Quality Control at the National Department of Agriculture. Import licenses are valid only for the calendar year in which they are issued. The license is only valid in respect of the goods of the class and country specified. It is non-transferable and may only be used by the person to whom it was issued. The consignment must comply with the import conditions set out in the import permit.

    As specified in the legislation and in the conditions of the import permits, cotton requires a compulsory inspection at the port of entry into South Africa by the Directorate of Plant and Quality Control, Department of Agriculture. In terms of the Agricultural Pest Act, plants, seeds and products of plants may only be imported through the ports of Cape Town, Port Elizabeth, East London, Durban, the Airports of OR Tambo in Johannesburg, Cape Town International, Durban International and the district offices of Johannesburg and Pretoria.

    There is no specific phytosanitary requirement specified in the import permit and there is not specific requirement for fumigation.

    All producers, purchasers, processors, importers and exporters of cotton are required to register with Cotton SA in terms of Government Notice No. R.908 of 12 July 2002. All producers, purchasers, processors, importers and exporters are also required to keep records and submit monthly returns to Cotton SA in terms of Government Notice No. R.909 of 12 July 2002.

    A levy of 17 cents per kilogram (excluding VAT) is imposed on cotton lint produced by ginners in South Africa. This levy is payable to Cotton SA in terms of Government Notice No. R.314 of 12 March 2004 and is used to finance the operations of Cotton SA which services the South African cotton industry. The levy is ultimately paid by the farmers as the ginners deduct this amount off their payments to the farmers. There have been numerous attempts to increase the collection base for the levy by making the levy applicable to all cotton imported for local processing. To date, these attempts have not been successful.