The second term of statutory measures relating to macadamia nuts (Government Gazette 41970) came into effect on 15 November 2018. It requires that all Growers, Nurseries, Processors, Consolidators of nut in shell, Exporters and Importers register with SAMAC.
This registration is for the purpose of gathering good industry information which benefits the industry e.g. crop estimates and tree census information.
It will also form part of the process of collecting the statutory levy of 68c per kilogram nut in shell (1.5% kernel moisture).
The statutory measures require handlers (processors and consolidators of nut in shell) and importers of in-shell macadamias to deduct and pay over the levy on behalf of all growers.
Please note that the levy of 68c excludes VAT, and that VAT must be charged on levies.
Frequently Asked Questions
Regulations relating to macadamia statutory levies were published in the Government Gazette on 12 October 2018, No 41970, Notices 627-629.
The regulations deal with the following:
- Registration of stakeholders
- Reporting and Returns of NIS volumes passing through businesses.
- Payment and deduction of levies.
Growers, Nurseries, Consolidators of nut in shell (NIS), Processors, Exporters and Importers are all required to register with SAMAC. SAMAC members will not be required to re-register, as SAMAC already has their details on file, although companies and trusts will still need to send their MOI or Letter of Authority respectively to SAMAC. Non-SAMAC members are required by law to register with SAMAC. Registration does not mean membership, so there is no membership fee involved to registration.
2. Reporting and Returns
SAMAC will send out forms for reporting and returns to Handlers (Processors, Consolidators of NIS, Importers and Exporters), Growers and Nurseries. These reports and returns include volume declarations from Handlers which will determine the levy amount to be collected and then paid over to SAMAC. Growers and nurseries will also be required to provide information needed for SAMAC’s tree census and general industry statistics.
The statutory levy has been set at 68c (excl. VAT) for every kilogram of NIS (1.5% kernel moisture). This is a grower levy and must be deducted by Processors and Consolidators of NIS. Any growers who export NIS directly will also pay the required levies over to SAMAC. Growers who sell their own NIS directly from the farm are also classified as Consolidators of NIS and must pay over levies under the new legislation. This is irrespective of the quality of macadamias sold or bought. Importers are also required to pay the levy on any imported macadamias.
Who must deduct and pay over the Statutory Levy to SAMAC
Processors / handlers and consolidators of NIS must deduct and pay over the levy excl. VAT (NIS, 1.5% moisture) to SAMAC. The general rule is that the first point of handling after the farm is the point that must deduct and pay over the levy. However, if a grower exports his own NIS, the grower is classified as a consolidator of NIS, and must pay over the levy on the nuts exported directly to SAMAC.
Is the Statutory Levy paid to the government?
No, the statutory levy is paid directly to SAMAC
Does the government have control over how the Statutory Levy is utilised?
The government stipulates that 70% of the statutory levy is spent on meeting the objectives of the statutory levy, which in general, are SAMAC’s objectives. No more than 10% may be spent on levy administration, and 20% must be spent on transformation. Transformation is broadly defined as getting black people involved in the macadamia industry. SAMAC will constitute a transformation committee to agree on transformation projects. The current thinking is that SAMAC will part-fund projects that industry role players are currently involved in or would like to start.
Can a grower instruct a processor or a consolidator of NIS not to deduct and pay over the levy?
No, the law requires processors and consolidators of NIS to deduct and pay over the levy regardless. The grower has no say over the matter. Should the processor or consolidator of NIS not pay over any levy in accordance with the statute, or if they or any other entity fail to comply with the statutory measures, they will be in breach of the legislation and can be issued a fine or be imprisoned.
For how long will this Statutory Levy be in place?
According to the current regulations, the statutory levy will be in place until 15 November 2022 (a four-year period). If the industry wishes to continue with a statutory levy thereafter, SAMAC will have to consult with growers and then apply for a new levy for a further period. If SAMAC does not make a new application, the levy will be discontinued after 15 November 2022.
How will SAMAC ensure that processors and consolidators of NIS pay over the levies deducted from growers?
The regulations require handlers of NIS to provide a declaration from their auditors or accounting firms stating the annual volume of NIS handled and the levies paid over to SAMAC. Any deviation from this will be in breach of the legislation. Furthermore, SAMAC has applied for inspectors that will be appointed by the Minster of the Department of Agriculture, Forestry and Fisheries. They have certain rights that will assist in prosecuting dishonest role players.
Does the Statutory Levy mean that all growers will automatically be members of SAMAC?
No, all growers will not automatically become SAMAC members. Non- SAMAC growers will still have to apply for membership and pay an annual fee (currently R500 p.a.). Payment of annual fees by all SAMAC growers will allow SAMAC to keep its membership database properly up to date. Growers will not be forced to join SAMAC, but it makes sense for them to join so that they maximise the benefit of their levies by having access to all SAMAC’s services and information. Growers or other stakeholders wishing to apply for membership may contact the SAMAC offices on 012 643 3459 or 013 753 2077, or complete an online membership form here : Grower Membership