Exporters may collaborate on freight consolidation, warehousing and certain logistics costs under South Africa’s export block exemption, but it does not protect joint commercial negotiations with port or rail operators.
The Department of Trade, Industry and Competition (dtic) and Competition Commission clarified the scope of the exemption during a public webinar on August 31.
Dtic Director: Export Development and Support, Kwanele Mkhwanazi, said collective action could help exporters overcome some of the logistics challenges that make international markets difficult to access.
“Smaller exporters in particular often struggle to afford logistics and consolidate enough volume to ship commercially,” Mkhwanazi said.
“Several small exporters targeting the same overseas market could potentially share costs associated with logistics, warehousing and other export-related activities.”
Competition Commission Senior Legal Counsel Simphiwe Gumede said permitted collaboration could include certain costs associated with shipping, storage, inspections and freight consolidation hubs.
Exporters may also share aggregated information on export prices and volumes through an independent third party, according to the Commission.
These provisions could help smaller exporters consolidate volumes, reduce costs and move goods to international markets more efficiently.
However, Gumede stressed that the exemption did not extend to commercial agreements between exporters and port or rail infrastructure providers.
Such arrangements fall outside its scope, meaning exporters cannot rely on the exemption for protection when negotiating collectively with these operators.
The exemption therefore facilitates specified forms of cooperation among exporters without removing the competition-law considerations governing their commercial dealings with transport infrastructure providers.
The Commission urged exporters to obtain confirmation that a proposed agreement falls within the scope of the exemption before implementing it.
It has 30 days to consider an application for confirmation, with a further 30-day extension possible.
