Recently, Must Paper Industries was awarded SADC registration certification.
Below is more information regarding SADC Certification and how it can help with exporting of goods.
WHAT IS SADC?
The Southern African Development Community (SADC) has been in existence since 1980.
At the present moment, member countries are: Angola, Botswana, Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. Madagascar was also a member – but was suspended from the SADC in March 2009 after the country’s president was forced out of office.
FREE TRADE AREA
A FTA is a group of countries in which import tariffs (or duties) and non-tariff barriers are eliminated on substantially all trade between them. Because Import tariffs increase consumer prices and reduce the level of trade, the SADC regards FTA as being key to its mandate as a step along the path towards deeper regional economic integration. Members maintain their own tariffs on non-members. The FTA also includes measures directly aimed at facilitating trade by reducing red tape and paperwork at the borders and providing a framework for improving the movement of goods throughout the region.
From January 2008, when SADC attained the status of an FTA, producers and consumers do not pay import tariffs on an estimated 85% of all trade in community goods in the initial 12 countries. The remaining tariff lines will be almost completely phased out by 2012.
Given that not all products qualify for duty-free under an FTA, a considerable amount of time was spent on negotiating the rules of origin, which were eventually agreed as being product specific. A SADC Certificate of Origin, which authenticates goods that originate from the region, is already being used by the member states. These rules of origin are to ensure that goods not originating from the region do not enjoy tariff preference. They are also to ensure that the region is not flooded with imports from third countries.
The objectives of the SADC trade agreement are:
- To further liberalise intra-regional trade in goods and services on the basis of fair, mutually equitable and beneficial trade arrangements, complemented by Protocols in other areas
- To ensure efficient production within SADC reflecting the current and dynamic comparative advantages of its Members
- To contribute towards the improvement of the climate for domestic, cross-border and foreign investment
- To enhance the economic development, diversification and industrialisation of the Region
- To establish a Free Trade Area in the SADC Region
More specifically, the agreement aims to:
- Eliminate barriers to intra-SADC trade
- Eliminate import duties based on a phased approach
- Eliminate all export duties
- Eliminate non-tariff barriers
- Apply no new quantitative import restrictions
- Eliminate quantitative export restrictions