Customs

On 3 June 2015 the Department of Trade and Industry (the dti) announced that it had identified the need for South African export promotion and development legislation. It said it was preparing a White Paper and a National Export Development and Promotion Bill, which is in line with amongst other the National Development Plan (NDP) and the New Growth Path. The dti invited all interested parties to comment by 21 July 2015.

The dti requested input on the following proposed themes: (1.) Setting of strategic export goals - smart targets (for sectors and regions); (2.) Strategic leadership and monitoring and evaluation; (3.) Border-in or supply-side issues including: developing an export culture in South Africa; exporter development; domestic and foreign direct investments; cost of inputs; productivity; quality; innovation; Special Economic Zones (SEZs) and industrial parks; skills; and other border-in issues; (4.) Border or business environment: infrastructure; trade facilitation; cost of doing business; and other border issues; (5.) Border-out or demand-side issues: market access; in-market support; strategic export promotion; and other border-out issues. (6.) Developmental issues: job creation; transformation efforts; regional development; and other developmental issues; (7.) Export structures: policy and strategy; implementation; and advocacy; and (8.) Export specific legislation. The dti indicated that comments need not be restricted to these themes, as all inputs would be considered.

A few off the cuff remarks. What then of the dti’s own National Exporter Development Programme (NEDP) launched on 3 April 2013? It is also quite possible that the dti does not even know who the registered exporters are. According to Sars in 2013/14 there were 246 500 registered exporters (actual number?). The extent of duplicate registration or for that matter active exporters is not known. If accounted for it could well reduce the number significantly.

As a final observation, for any export promotion and development legislation to have any possibility of succeeding it should be realistic about elasticity and electricity. On that we elaborate next week.

If you are interested or need to be reminded of how the laws of the land came to be, then you may find the following of interest – aptly titled “The Process of Making a Law”, which you can access at http://www.parliament.gov.za/live/content.php?Item_ID=1843.

“The process of making a law may start with a discussion document called a Green Paper that is drafted in the Ministry or department dealing with a particular issue. This discussion document gives an idea of the general thinking that informs a particular policy. It is then published for comment, suggestions or ideas. This leads to the development of a more refined discussion document, a White Paper, which is a broad statement of government policy. It is drafted by the relevant department or task team and the relevant parliamentary committees may propose amendments or other proposals. After this, it is sent back to the Ministry for further discussion, input and final decisions.”

In addition you may want to be reminded of what a Bill is. “What is a Bill?”, accessible at http://www.parliament.gov.za/live/content.php?Item_ID=1843

“It is a draft version of a law. Most Bills are drawn up by a government department under direction of the relevant minister or deputy minister. This kind of Bill must be approved by the Cabinet before being submitted to Parliament. Bills introduced by individual Members are called Private Members’ Legislative Proposals.”

Something which I found of interest when researching the origin of a White Paper was that as with most things in life it is a British invention – colonial by origin and design. A White Paper, according to it creators, is an authoritative report or guide informing in a concise manner about a complex issue and presenting the issuing body's philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision.

My concern with the South African White Paper is that it will offer very little, if anything, by means of design or resolve. With a deindustrialising manufacturing base, a mining sector in decline, and persisting electricity constraints – to name but a few challenges – the White Paper should honestly acknowledge and account for the means to overcome such challenges. Could it be that the legislation intends to merely enforce transformation rather than to expand on South Africa’s perceived export prowess?