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PRESENTATION TO PORTFOLIO PRESENTATION TO PORTFOLIO COMMITTEE COMMITTEE LIQUOR PRODUCTS AMENDMENT BILL

PRESENTATION TO PORTFOLIO COMMITTEE LIQUOR PRODUCTS AMENDMENT BILL LIQUOR PRODUCTS AMENDMENT BILL

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PRESENTATION TO PORTFOLIO PRESENTATION TO PORTFOLIO COMMITTEECOMMITTEEPRESENTATION TO PORTFOLIO PRESENTATION TO PORTFOLIO COMMITTEECOMMITTEE

LIQUOR PRODUCTS AMENDMENTBILLLIQUOR PRODUCTS AMENDMENTBILL

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LIQUOR PRODUCTS LIQUOR PRODUCTS ACT, 1989ACT, 1989LIQUOR PRODUCTS LIQUOR PRODUCTS ACT, 1989ACT, 1989

Promulgated in 1989 and Implemented in 1990

OBJECTIVES:

Establishment of the Wine and Spirit Board

Sale and production of certain alcoholic products

Composition and properties of liquor products

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LIQUOR PRODUCTS LIQUOR PRODUCTS ACT-CONTINUEDACT-CONTINUEDLIQUOR PRODUCTS LIQUOR PRODUCTS ACT-CONTINUEDACT-CONTINUED

Labelling, Import and Export of all liquor products – except Beer and Medicine

Prohibits the use of false or misleading indications on liquor products

Establishments of Schemes

The Act does not regulate the distribution of liquor products- National Liquor Acts.

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Liquor Act 59 of 2003Liquor Act 59 of 2003Liquor Act 59 of 2003Liquor Act 59 of 2003

Repealed LIQUOR ACT 27 OF 1989

Came into operation on 13 August 2004

Responsibility –Department of trade and Industry.

Purpose- To provide for control over the sale of liquor and for matters connected therewith.

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LIQUOR PRODUCTS LIQUOR PRODUCTS AMENDMENT BILLAMENDMENT BILLLIQUOR PRODUCTS LIQUOR PRODUCTS AMENDMENT BILLAMENDMENT BILL

WHY ARE WE AMENDING?

Give effect to International obligations Amend composition of Board Members

Production requirements for wine

Traceability

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Composition of boardComposition of boardComposition of boardComposition of board

8 members with knowledge, skills, or expertise in veticulture, oenology, distilling, regulatory environment of the liquor industry

3 officers of the Department nominated by the Minister

1 person from the ARC

1 person designated by Minister

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INTERNATIONAL INTERNATIONAL OBLIGATIONSOBLIGATIONSINTERNATIONAL INTERNATIONAL OBLIGATIONSOBLIGATIONS

SA/EU Wine and Spirit Agreement

MAA (Mutual Acceptance) and Labelling Agreement of the WWTG (World Wine Trade Group) to facilitate trade in wine

Protection of geographical indications in terms of TRIPS (Agreement on Trade Related Intellectual

Property Rights)

Proposed amendment- ensure that the importation of liquor products is subject to SA’s International Agreements

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WINE & SPIRIT WINE & SPIRIT BOARDBOARD WINE & SPIRIT WINE & SPIRIT BOARDBOARD

MEMBERS APPOINTED BY MINISTER ON NOMINATION

Act still refers to nomination by the Ko-operative Wijnbouwers Vereniging (KWV)

Cape Wine and Spirit Institute – speaks on

behalf of producers and merchants

PROBLEM: Structural changes within the industry - No longer representative of all the participants in the Industry concerned

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PRODUCTION PRODUCTION REQUIREMENTS FOR REQUIREMENTS FOR WINEWINE

PRODUCTION PRODUCTION REQUIREMENTS FOR REQUIREMENTS FOR WINEWINE

CURRENTLY – WINE GRAPES ONLY FROM VITIS VINIFERA Internationally no longer a requirement

Villard blanc project in Northern Cape and Free State

Concept of low cost vine establishment and cultivation and fast cash flow to enable emerging farmers to easier access the wine industry on producer level

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PRODUCTION PRODUCTION REQUIREMENTS FOR REQUIREMENTS FOR WINE – CONTINUEDWINE – CONTINUED

PRODUCTION PRODUCTION REQUIREMENTS FOR REQUIREMENTS FOR WINE – CONTINUEDWINE – CONTINUED

PROPOSED AMENDMENT – WINE GRAPES FROM GENUS VITIS

Harmonize with international legislation –currently practised in USA, Australia, New Zealand

Level the playing field

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TRACEABILITYTRACEABILITYTRACEABILITYTRACEABILITY

Legislative requirements imposed by EU for traceability on all agricultural products

Required to address food safety concerns and ensure quick recall of products

Proposed amendment: • Lot marking of receptacles/bottles/ containers

to be made obligatory

• Gauging/marking of tanks

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PROCESSES TO PROCESSES TO DATEDATEPROCESSES TO PROCESSES TO DATEDATE

LP Bill published twice for comments

Following bodies were consulted: Wine and Spirit Board South African Liquor Brand Owners Association

(includes wholesalers like KWV, Distell, etc.) Cooperative Winegrowers Association WINETECH Association for Cape Estate Owners SAB SA Wine Industry Council

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NEW PROCESSNEW PROCESSNEW PROCESSNEW PROCESS

Policy on liquor

Concerns from agriculture is food safety

Process will involve Agriculture, Health and the dti.

Policy to be finalized by end of the year• How far should we go with regard to beer

especially sorghum beer• Do we include all fermented products?

Will consult broadly