South Africa’s Perishable Products Export Control Board (PPECB) has announced an inspection levy increase of six per cent with effect from April 1.

However, deciduous products - grapes, stonefruit and top fruit - will be exempt from the proposed raise, as their own inspection levy increases are scheduled to come into force on October 1.

“The six per cent increase has been passed in times of high inflation in the South African economy, increasing the input costs for PPECB and placing our levies under severe pressure,” said a statement from the board. “We are well aware that the South African government has an inflation target of six per cent, but current inflation rates are above this, at 9.3 per cent.”

Several factors were taken into account before determining the levy increase, said the PPECB:

• PPECB assessors currently travel around 3.5 million km per year, therefore 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 per cent increase in accommodation costs has been observed;

• an increase in PPECB training initiatives to ensure the board complies to its mandate and requirements to the various trade protocols signed between South Africa and its trading partners;

• the mode of shipping has dramatically shifted from conventional to containerised 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;

• levies are also influenced by volume variations, and there has been no overall volume growth forecasted for 2008-09.

“Despite all these factors, PPECB recognises the pressures that the industry is faced with, and was therefore able to limit the increase in levies to six per cent,” added the PPECB.

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