FOOD & BEVERAGES: PPECB Ups Its Inspection Fee
Recent Western Cape Business News
WITH the review of the expected deciduous fruit sector’s export activities for the 2009-10 season, an increase of the APS Act inspection fee of 10.5% was approved by the Perishable Products Export Control Board at the board meeting held in September.
All other fees and PPECB levies are set for review in April next year.
The increase below the expected CPIX has been passed in times of a high inflation in the South African economy thus placing PPECB’s fees under severe pressure, a statement says.
Various other factors that were taken into consideration before determining the increase in fees were:
• The consistent increases in petrol costs have considerably increased the cost of travel.
• There has also been a significant increase in the Assessor’s accommodation costs for relief duty due to South Africa becoming a popular tourist destination.
In some areas a 50% increase in accommodation costs has been observed.
• An increase in training initiatives to ensure that PPECB complies to its mandate and requirements to the various trade protocols signed between South Africa and its trading partners. It is therefore critical that PPECB ensure that the competency level of its personnel will ensure continue market access and compliance with the various protocols.
• The mode of shipping has dramatically shifted from conventional to containerized loading and this has seen an increase in loading points and therefore an increase in input costs to be present at the time of loading.
• Fees are also influenced by volume variations and there has been limited volume growth forecasted for the 2009-10 seasonal year.Despite all the factors, PPECB says it recognizes the pressures that industry is faced with and is therefore able to limit the increase in fees to 10.5%.
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