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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 European Union and Southern African Development Community for the Year 2021

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 SADC-EU EPA between the EU 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 to BBBEE Amendment Act No. 46 of 2013). The AgriBEE Sector Code was published in Notice no. 1065 of Government Gazette No. 36035 of 28 December 2012. 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 of the B-BBEE Amendment Act, 46 of 2013.
7.1.3 The validity of the BEE certificates issued by the 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 qualifies as Exempted Micro Enterprises (EME). EME’s will enjoy a deemed BEE recognition level of either level 3 or level 4 (as defined in the Amended AgriBEE Sector Code), the sufficient evidence of qualification as an Exempted Micro-Enterprise is a Sworn Affidavit, an auditor’s letter or similar letter issued by an accounting officer or verification agency, and must accompany the application form submitted to the DAFF.
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