The Minister of Agriculture and Land Affairs imposed levies on winter cereal in terms of sections 13 and 15 of the Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996).

The levies were promulgated in Government Notice No. 4031, September 2016 abd became applicable from 1 October 2016 till 30 September 2020.  Details of the levies are set out hereunder.  Affected parties should note that although the levies will be applicable for a 4 year period. It is recommended that affected parties consult the Government Notice concerned.

Products on which and the circumstances whereunder the levies are payable

The levies took effect from 1 October 2016 and are applicable to wheat and barley:

  • sold by or on behalf of the producer thereof;
  • imported into the Republic of South Africa;
  • processed or converted or caused to be processed or converted into a winter cereal product, by or on behalf of the producer thereof, if the winter cereal product is intended
    to be disposed of;
  • exported from the Republic of South Africa, if the levy in respect of such winter cereal has not already been paid in terms of paragraph (a), (b) or (e); and
  • in respect of which a silo receipt has been issued, if the levy in respect of such winter cereal has not already been paid in terms of paragraph (a) or (b).

Please note that the levies are payable under all the circumstances referred to above and are applicable to such actions with any winter cereal irrespective of the grade or the purpose of usage thereof.

Persons responsible for the payment of levies

In terms of the Government Notice concerned, the levies are payable by the following persons:

  • in the case of a levy contemplated in clause 1(a), be payable by the buyer of the winter cereal;
  • in the case of a levy contemplated in clause 1(b), be payable by:
    • the buyer of the winter cereal where the winter cereal is sold by the importer; and
    • the importer of the winter cereal where the importer is also the processor thereof.
  • in the case of a levy contemplated in clause 1(c), be payable by the processor or converter of the winter cereal;
  • in the case of a levy contemplated in clause 1(d), be payable by the exporter of the winter cereal; and
  • in the case of a levy contemplated in clause 1(e), be payable by the person issuing such silo receipt.

The amount of the levy payable by the buyer in terms of sub -clause (1) and (2)(a) may be deducted from the purchase price payable to the producer or the importer, respectively.

The amount of the levy payable by the person issuing the silo receipt in terms of sub-clause 5 may be recovered from the person to whom such silo receipt is issued.

Amount of the levies

The amounts of the levies for the different products are composed as follows:

Commodity Period Amount 
(excluding Value Added Tax)
Wheat 1/10/2016 to 30/09/2017 R10.00 per metric ton
  1/10/2017 to 30/09/2018 R10.70 per metric ton
  1/10/2018 to 30/09/2019 R11.40 per metric ton
  1/10/2019 to 30/09/2020 R12.25 per metric ton
Barley 1/10/2016 to 30/09/2020 R5.00 per metric ton

 

Recovery of levies

In terms of the provisions of the Government Notice concerned the amounts of the levies payable by the buyer in the case of paragraphs 2(a) and 2(b) above, may be deducted from the purchase price payable to the producer or the importer.  The amounts of the levies payable by the person issuing the SAFEX silo receipt in the case of paragraph 2(e) above, may be recovered from the person to whom such SAFEX silo receipt is issued.

Time and place of payment of the levies

The levies are payable not later than the last day of the month following the month during which the winter cereal was sold, processed, imported or exported or a SAFEX silo receipt was issued:

Payments of the levies must be made to:

Winter Cereal Trust
PO Box 7088
CENTURION
0046

Payment by cheque must be in favour of the Winter Cereal Trust.

Bank details for direct deposits are as follows:

Bank : Nedbank
Branch : Centurion
Branch code : 1621 4540
Account name : Winter Cereal Trust
Account number : 1621 122 239

When payments are made the attached “Payment advice” forms must be completed 
and forwarded to this office.

Commission payable

The Board of Trustees decided to pay a commission to the payers of the levies on the following basis and subject to the conditions set out hereunder:

  • The commission will only be payable on levies paid to the Trust within the prescribed period;
  • payment of the commission will only be made after receipt of a specified invoice made out to the Winter Cereal Trust; and
  • the commission will be calculated at 2.5% of the amount of the levies (VAT excluded) paid to the Trust.

N.B. The commission must not be deducted from the amounts payable to the Trust. Payment of the commission will be made after receipt of an invoice.