Competition Act: Draft Export Promotion Block Exemption Gazetted

Posted 12 August 2025 Written by Acts Online
Category Trade

Brought to you by SA Legal Academy: The Department of Trade, Industry & Competition (DTIC) has released a draft export-related block exemption for public consultation, aimed at facilitating collaborative export activities.

In terms of the Competition Act, No. 89 of 1998, the DTIC has published the draft exemption to mitigate the economic impact of increased tariffs on South African businesses. The proposed regulation focuses on certain horizontal and vertical practices that are typically prohibited under section 4 and section 5 of the Act.

The draft block exemption is intended to allow firms to collaborate on export-related activities without the risk of prosecution for restrictive practices, provided they meet specific criteria. Key features of the proposed exemption include:

  • The exemption of specific agreements and practices from the prohibitions contained in section 4(1) (horizontal restrictive practices) and section 5(1) (vertical restrictive practices) of the Competition Act, No. 89 of 1998.
  • A focus on promoting South African exports in international markets where local firms face significant tariff barriers.
  • Requirements for firms to maintain records and potentially notify the Competition Commission of their reliance on the exemption.

Stakeholders and interested parties are invited to submit written comments on the draft block exemption by no later than 1 September 2025.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact is channelled through firm-level advisory regarding competition law compliance and export strategy.
  • For your business: Firms engaged in export activities should review their current collaborative agreements to determine if they align with the proposed exemptions under sections 4 and 5 of the Act.
  • For your clients: Advise clients in the manufacturing and trade sectors on the opportunity to pool resources for international market entry and the specific compliance steps required to qualify for the block exemption once finalised.

Originally published at https://legalacademy.co.za/news/read/competition-act-input-sought-on-export-promotion-draft-block-exemption

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