BEE a factor in EU Treaty
At a time when many companies may be considering not proceeding with a B-BBEE rating under the more onerous Amended Codes, the need for a BEE Certificate is becoming critical for many businesses who export to the EU.
To benefit from the recently signed SADC – EU Economic Partnership Agreement (EPA) that provides for the export of South African agricultural products to the EU under a Tariff Rate Quota regime , interested companies must apply for the permits that will be issued on a “first come first served” basis until agreed quotas are reached.
The permit allocation will take into account a number of variables such as tax clearance certificate, technical compliance with EU rules and the B-BBEE status of the applicant. The exporter’s B-BBEE level is now a significant factor to continue exporting to the EU under the new SADC – EU Economic Partnership Agreement that replaces the previous treaty (Trade, Development and Cooperation Agreement – TDCA).