The Amended Forest Sector Code has been gazetted by the Department of Trade and Industry (DTI) on the 21 April 2017. This Sector Code came into effect immediately on date of publication.
Entities that are involved with commercial forestry and first level processing of wood products will have to be rated on this Sector Code. This includes the following sub-sectors:
- Growers (plantations, nurseries and indigenous forest)
- Contracting (forestry contractors in silviculture, harvesting, fire-fighting services and other forestry contracting services that are not covered by their sector codes)
- Fibre (pulp, paper, paperboard, timber board product, woodchip and wattle bark manufacturers)
- Sawmilling (industrial, structural and mining timber sawmills and match producers)
- Pole (pole treatment plants)
- Charcoal (Charcoal producers)
- Non-Timber forest product enterprises such as those involved in honey production, harvesting of mushrooms and medicinal plant, as well as forestry based tourism enterprises are not directly covered by the Code, as they are included in other Sector Codes. However because forestry growers license these activities, non-timber forest product enterprises will be impacted on and benefit from agreements reached within the FSC.
The priority elements are also applicable on this Sector Code. That means that an entity must reach sub-minimum on the priority elements (Ownership, Skills & Enterprise and Supplier Development) not to be discounted a level.
Should you fall under one of the abovementioned sub-sectors the next step will be to determine whether your entity will be measured as an EME, QSE or a Generic entity?
The thresholds that must be used to determine this are as follow:
- Exempted Micro Enterprise (EME) – Annual Turnover of below R10 million
- Qualifying Small Enterprise (QSE) – Annual Turnover between R10 and R50 million. Keep in mind if the entity have more than 51% black ownership you might qualify for an automatic level 1 or 2 affidavit
- Generic – Annual turnover of more than R50 million
Once you have determined whether you fall under the scope of application and what scorecard will be applicable to you, you can start with the preparations for your verification.
Should you already be with SEESA BEE your legal advisor will assist you with all of the above as well as the verification proses and what will be required – if you do not have your own BEE legal advisor, contact us today!
ABOUT THE AUTHOR
Geralene van Wyk obtained her BA (Psychology) and LLB degrees from the North-West University. After her studies she completed her articles in Pretoria and was admitted as a practicing attorney in 2006 and a conveyancer in 2007. She joined SEESA BEE in 2011 as a legal advisor and is currently a SEESA BEE National Training Senior Legal Advisor at the Pretoria Head Office.