Missing its High Court-imposed deadline of two years by a whisker, the Department of Agriculture (DOA) has released/will release newly written Rules in Respect of Export Agents (Rules), which was done after the Fresh Produce Exporters' Forum (FPEF) prompted a successful court challenge to the existing Agricultural Produce Agents' Council (APAC) current Export Agents Rules.
The minister of agriculture's signature, expected in April, will be placed on the newly redrafted amended rules.
In the meantime, the entire Agricultural Produce Agents Act 12 of 1992 is also being redrafted by APAC to have "a very condensed Act at the end of the process. A golden thread of sensible representation runs throughout this futuristic document," Francois Knowles, APAC Registrar, told an online public participation session last week. "The intent focused on streamlining the original Act into an easy-to-read language." The process is, he said, almost done. Due to the urgency of the matter, APAC, in conjunction with the fresh produce export industry, has decided that changes to the current disputed Export Rules could not wait for the finalization of the legislative process.
Knowles indicated a greater shift towards self-regulation of export agents and no longer registering individuals. "We're placing the burden on the agency to manage within – that's an important change. We have the freedom to be futuristic and to make rules that make sense, practically."
© Carolize Jansen | FreshPlaza.com
"We want export agents to be the best they can be"
"The first rule was controversial: if you, as an export agent, have excess produce, if something goes wrong with a consignment, and you want to divert to the local market, you had to re-register as a fresh produce agent - that rule is now abolished. An exporter no longer needs to re-register as a local market agent. That difference is a huge element that will make the world of exporters easier. In the meantime, exporters can't do proper business because they carry the burden of old and outdated rules," he said, referring to the war in the Middle East, which has an outsized effect on certain export sectors.
Especially with the current challenges in the export fraternity, he observed, a rule must serve to enhance industry.
"The second issue was that an agent can be disqualified if the mandatory, statutory training is incomplete. Now the intention has never been that training should be a disqualifying element. We want export agents to be the best they can be: they represent South Africa on the international stage."
Past training and past experience – many agents have been in the industry for 25 years and longer - will be taken into account, Knowles affirmed, adding: "Even if we've been in the industry for many years, there's always something to take note of, always something we can do better."
APAC has always checked the criminal and financial backgrounds of applicants for an agent's license, and that is not going to change, he said.
An agent must be free of conflict of interest – for instance, surreptitiously agreeing with a buyer on a lower price than had been negotiated with the farmer, and then suggesting to the latter that a lowered selling price is an unavoidable necessity. "An agent can't be playing both sides of the market."
In fact, Knowles wants an APAC registration certificate to be a badge of honour, and ideally, prominently displayed in the offices of market agencies and exporters.
He continued: "If we have an applicant found wanting after being appointed, the registration certificate will then be withdrawn. All the unscrupulous, unregistered people in the industry that create havoc and create a bad name in the international community need to be removed."
Other amendments awaiting the minister's signature relate to a lessening of the submission of financial statements required, as well as a full alignment with the Companies Act regulating the submission of financial statements. "The new approach is easier by getting affirmation from the agency's auditor on figures required, such as turnovers achieved. As APAC, we're very focused on providing a level playing field. We indulge emerging export agencies: we want them to participate and grow the industry at large, that's important. They just need a fair chance, and with hard work, they will achieve greatness."
The CEO of the Fresh Produce Exporters' Forum, which was involved in amending the rules, Piet de Jager, said: "I believe we've put together a set of rules that is fair and satisfies all requirements to regulate the industry and to protect the interests of growers."
Knowles concluded: "Now is the time to focus and position export agents so that they can flourish."
For more information:
Francois Knowles
Agricultural Produce Agents' Council
Tel: +27 11 894 3680
Email: [email protected]/ [email protected]
https://apacweb.org.za/
