Export Market Guide - South Africa
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All regulatory information for exporting wine goods to South Africa, including the regulatory environment, duties and taxes, and permitted additives.
Unless an exemption has been granted by Wine Australia, grape products exported from Australia must comply with the Food Standards Code. Accordingly, the labelling and wine standards information in Wine Australia’s Export Market Guides should be read in conjunction with Wine Australia’s Licensing and Compliance Guide which contains the requirements of the Food Standards Code and applicable exemptions.
South Africa shares borders with Namibia in the northwest, Botswana and Zimbabwe in the north, Mozambique in the northeast and Swaziland in the east. South Africa is Australia’s largest trading partner in Africa and bilateral relations are strong. South Africa is a middle-income, emerging market with an abundant supply of natural resources. Mining is the centre of South Africa’s economy.
South Africa is part of the Southern Africa Development Community (SADC). South Africa has entered into Free Trade Agreements with the EU, EFTA and MERCOSUR which will see a gradual reduction in tariffs to zero. In comparison, Australian wines entering South Africa attract a 25 per cent tariff.
South Africa and Australia are members of the World Wine Trade Group. South Africa has not yet signed either of the agreements formed by the group (Agreement on Oenological Practices and the Agreement on Labelling). South Africa has a robust wine regulatory framework with export controls similar to Australia’s.
South Africa is the eighth largest producer of wine, accounting for approximately 3.9 per cent of the world’s wine. In 2022, the annual harvest amounted to 1 375 937 tons (1 068.3 million litres), of which 80.9 per cent was used for wine. In the same year, South African wine exports reached 368.5 million litres.
In 2023, Australian imports of still wine (9 litre cases) ranked seventh. The majority of still wine imports are from the United States, Portugal, France, Italy, Chile and Spain. Having tapped into the emerging middle class, still wine had experienced significant growth in recent years. Key drivers were penetration of urban and rural townships by major liquor store franchises and affordable bag-in-box offerings. Alternatives to traditional glass bottles are expected to continue gaining in popularity. Red wine consumption is on the rise, gaining share from white wine. Rosé has contracted to some extent. Entry-level consumers increasingly seek sweeter and more approachable wine options.
Regulatory environment
Various departments within the South African government enforce the Liquor Products Act (Act 60 of 1989), which concerns the import and export of liquor products. The Food Safety and Quality Assurance Directorate of the Department of Agriculture, Land Reform and Rural Development (DALRRD) is the main regulator, while other aspects related to liquor regulation are administered by the Department of Health, Department of Trade and Industry and the South African Revenue Service (SARS). Other relevant legislation includes the Liquor Act 59 of 2003 and the Foodstuffs, Cosmetics and Disinfectants Act 1972.
“PROSECCO” has legal protection as a geographical indication in this market. Wine Australia understands there is a risk that infringement proceedings are alleged/commenced/enforced or other rights (e.g. seizure of goods) are sought to be enforced in accordance with the laws of this market. Wine Australia recommends exporters obtain independent legal advice from this market concerning their intended export of wine described and presented as “Prosecco”.