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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Notices

Procedures for the Application, Administration and Allocation of Export Quotas under the Economic Partnership Agreement between the United Kingdom of Great Britain and Northern Ireland, of the one part, and the Southern African Customs Union Member States and Mozambique, of the other part, for the Year 2023

7. Compliance to BEE criteria in terms of Amended Agri-BEE Sector Code

 

7.1 Verification

 

7.1.1 Permits issued for products in terms of the SACUM-UK EPA between the UK and the RSA are subject to the Agricultural Black Economic Empowerment (AgriBEE) Sector Code published 8th of December 2017 under section 9(1) of the Broad-Based Black Empowerment Act No 53 of 2003 (as amended by BBBEE Amendment Act No. 46 of 2013). The AgriBEE Sector Code was published in Notice no. 1354 of Government Gazette No. 41306 of 8 December 2017. The AgriBEE Sector Code is also available on the Departmental website https://www.dalrrd.gov.za; publications/ Government Gazette no. 36035.

 

7.1.2 The B-BBEE criteria for issuing permits in this application is in terms of Section 6(1) of the B-BBEE Amendment Act, 46 of 2013.

 

7.1.3 The validity of the B-BBEE certificates measured against Amended AgriBEE Sector Code issued by Accredited Verification Agencies (accredited by SANAS) is 12 months from the date of issue. The list of accredited Verification Agencies is available on the SANAS website (https:// www.sanas.co.za).

 

7.2 Scope of application

 

7.2.1 The scope of the AgriBEE Sector Code shall include any enterprise which derives more than 50% of its turnover from the following:
• The primary production of agricultural products;
• The provision of inputs and services to enterprises engaged in the production of agricultural products;
• The beneficiation of agricultural products whether of a primary or semi-beneficiation form; and
• The storage, distribution, and/or trading and allied activities related to non-beneficiated agricultural products.

 

7.3 Exemptions

 

7.3.1 According to the AgriBEE Sector Code, enterprises with an annual turnover of less than R10 million qualify as Exempted Micro Enterprises (EME). EME’s will enjoy a deemed B-BBEE recognition level of level 4 (as defined in the Amended AgriBEE Sector Code), and sufficient evidence of qualification as an Exempted Micro Enterprise is a Sworn Affidavit or CIPC issued certificate annually confirming the Annual Total Revenue/Allocated Budget/Gross Receipts of R10 million or less and level of percentage of black beneficiaries, and must accompany the application form submitted to the Department.

 

7.3.2 A Qualifying Small Enterprise (QSE) is an enterprise with an annual turnover between R10 million and R50 million and it qualifies for BEE compliance measurement in terms of the AgriBEE QSE Scorecard. A QSE must comply with five of the elements of the AgriBEE Sector Code for the purpose of measurement, and this certificate must accompany the application form.

 

7.3.3 Large Enterprise is enterprise with an annual turnover exceeding R50 million.