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WHAT IT TAKES TO TAP INTO AGOA

30/01/2018 02:02:00 BY KWANELE DHLADHLA

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MBABANE – Benefitting under AGOA, especially for textile companies, requires that businesses obtain an apparel visa.

Federation of Swaziland Employers and Chamber of Commerce (FSE&CC) Chief Executive Officer Bonisiwe Ntando explained that for any business to be able to trade they require an export permit from SRA, which is the first process any interested business has to go through.

She said depending on the product being exported then, the process and the time taken by the permit/certificate differs depending on the government agent issuing the permit/certificate.
Ntando said in as far they understood, only the textile industry has to go through certain processes before it can trade under the Africa Growth Opportunity Act (AGOA), it has to first obtain an apparel visa.

“Negotiations to obtain this visa are currently being conducted by the ministry of commerce, industry and trade. All other industries can immediately trade under AGOA, provided they get a market for their products and go through the normal processes for becoming an exporter,” said Ntando.

Ministry of Commerce, Industry and Trade Principal Secretary (PS) Siboniso Nkambule said they were currently engaging with the US Embassy on the issue.
Ntando also pointed out that the act requires businesses to maintain complete records of the production and the export of covered articles, including materials used in production for at least two years after production/ export.
Manufactures are required to draw up and sign a certificate of origin. It was explained that this was an important international trade document confirming that the particular exports had been wholly obtained, produced, manufactured or processed in a particular country.

Ntando said since AGOA classifies Swaziland as an LDC, the kingdom is allowed preference for apparel made from non-originated fabric (fabric that does not originate from the export country).
AGOA products include items such as apparel and footwear, wine, certain motor vehicle components, a variety of agricultural products, chemicals, beverages and tobacco products non-metallic mineral products leather and allied products plastics and rubber products, steel and many others.

AGOA as a preferential trade agreement offers tangible incentives that would give Swaziland market opportunities which would have a positive impact on the growth of its exports.