authorities
18 May 2006
In 1998, the Department of Trade and Industry (the dti) tabled a Liquor Bill
to Parliament proposing, amongst others, a three-tiered liquor regulation
regime. Due to concerns over provincial and national competencies, the Bill was
subsequently referred to the Constitutional Court to assess its
constitutionality.
The Court ruled that certain aspects of the Bill were indeed
unconstitutional, and the dti had not succeeded in justifying its intervention
in the regulation of the retail sale and micro manufacturing of liquor.
However, it did find that the dti had justified its intervention in the
creation of national systems of registration for manufacturers and distribution
of liquor.
As a result, the dti acquired the legislative and regulation authority the
over macro manufacturing and distribution of liquor. Provinces, on the other
hand, acquired exclusive legislative and regulation competence over micro
manufacturing and retail sale of liquor.
The distinction between macro and micro manufacturing is made on the basis
of the annual liquor production volume of any entity. Entities whose annual
liquor production exceeds the set volume threshold are regarded as macro
manufacturers of liquor and are regulated through a national system of
registration by the dti.
The volume thresholds for macro manufacturers are as follows:
* Beer: 100 million
* Traditional African Beer (Sorghum Beer): 50 million litres
* Wine: four million litres
* Spirits: two million litres
After extensive consultation with all stakeholders, the Liquor Act 59 of
2003 was passed on 13 August 2004. The Act repealed the 1989 Liquor Act only in
those provinces that have not enacted and promulgated their provincial Acts. To
date, only Gauteng and Eastern Cape provinces have promulgated their provincial
Acts. This means that the 1989 Act has been repealed in both provinces, but
remains in force in all the other provinces in the regulation of micro
manufacturing and retail sale of liquor and methylated spirits.
Following promulgation of the Act, people whose provincially issued licenses
were valid and involved in macro manufacturing and distribution of liquor were
required to apply for conversion of the licenses to national registrations by
11 November 2004. The licenses of those persons who did not apply for a
conversion have expired if their licenses involved macro manufacturing and
distribution of liquor and were valid. Consequently they need to make new
applications with the National Liquor Authority (NLA), which is housed within
the Consumer and Corporate Regulation Division of the dti. Please consult the
dti website www.thedti.gov.za for comprehensive details (go to Protecting
Consumers and Regulated Industries, and click on National Liquor Author
Enquiries to the National Liquor authority may be directed to:
Post: the dti, Private Bag X 84 Pretoria, 0001
Fax: (012) 394 2557
Tel: Customer Contact Center at 0861 843 384
For enquiries to the Provincial Liquor Authorities go to www.dti.gov.za
For more information:
Donavan Jacobs
Media Relations at the dti
Tel: (012) 394 1641
Fax: (012) 394 2641
Cell: 082 751 1078
E-mail: DJacobs@thedti.gov.za
Issued by: Department of Trade and Industry
18 May 2006
