Collection of Levies

SAPPA has been designated by the Minister of Agriculture, Land Reform and Rural Development as Administrator to implement and administer the Statutory Measures for the South African pecan nut industry since it was introduced on 9 March 2012. This includes that levies has to be collected.

The collection of levies by processors on behalf of producers and payment to SAPPA is working well.

Two activities that have been present since 2012 are:

• Nuts are stolen from producers before and during harvesting and sold to non-registered outlets.
• The informal sector and small shellers that are not registered with SAPPA, sell pecan nuts without paying levies.

Initially the volumes of these activities were low, and it was not cost effective to be investigated. With the growth in the industry, it however increased to the extent that action to curb it, is now becoming essential. SAPPA therefore requested the Minister to appoint authorised inspectors to investigate cases where there are reasonable grounds for believing that these activities are taking place.

Theft of nuts: – This problem is increasing dramatically and is currently a major problem in KZN. There are outlets selling nuts that are suspected being stolen as they are not supplied by any of the registered entities. This increases the “market” for stolen nuts. Almost all the producers in some areas make use of security guards to protect their orchards. This proves not to be successful as the guards are often threatened and a guard has been assaulted and held at gunpoint while the nuts were stolen.

By acting against the non-registered outlets, the “market” for stolen nuts should be reduced and this could have an effect on the theft.

The informal sector: – It was difficult to trace non-registered traders and shellers, but advertising and sales on social media are increasing and it will now be possible to identify more non-compliant entities. Although the volume of nuts sold in this way is unknown, it will increase levy collection.

Extract from the Government Gazette No 4131 of 1 December 2023 – Determinations in the Statutory Measures regarding the payment of levies.

Persons by whom levies shall be payable:

The levy shall –

• be payable by a processor, packer or exporter on behalf of the producer from which such pecan nuts have been procured in respect of all pecan nuts processed, packed or exported;
• be payable by a processor or packer on behalf of a producer in respect of all pecan nuts sorted and/or cleaned and/or shelled and/or packed and/or processed for and returned to such a producer;
• be payable by an importer on all pecan nuts and pecan nut products imported; and
• be payable by a producer who packs his own pecan nuts or pecan nut products for retail sale.

Definitions

“Packer” means a person or entity who buys or acquires pecan nuts and/or pecan nut products and packages it for resale; or packs its own products for retail sale.

“Processor” means a person or entity who sorts and/or cleans and/or shells and/or processes pecan nuts for resale.

“Producer” means a person or entity who grows pecan nut trees to produce pecan nuts for commercial gain.

Refer to the Government Gazette No 4131 of 1 December 2023 on the SAPPA website:  https://www.sappa.za.org/statutory-measures/