APAC REGISTRATION TO TRADE ON LOCAL MARKETS

An industry APAC Workgroup was tasked with engaging with APAC on different trading scenarios of export
agents; grower exporters; packhouses, etc.

A document was presented to APAC and the feedback indicated
that the test to determine who should register as a “fresh produce agent” in respect of trading on the local
market is based on whether the following four factors are present:
1. Is the exporter acting as an agent, in other words, does he/she sell the product ON BEHALF OF the
producer?
2. Is he/she doing it for gain (profit/commission, and NOT merely for recovery of costs/salary)?
3. Does the risk of quality/price stay with the Producer? and
4. Are the products sold locally (regardless of quantity/percentage of local sales in comparison with
exports)?
If the above four factors are present, the exporters will have to register as fresh produce agents in respect of
the local market in addition to registration as an export agent.
APAC has indicated that they would evaluate every supply agreement between an exporter/agent and
producer on its own merits and would consider the true nature of a contract regardless of its name (intention,
simulated transactions). If the true nature/intention is one of agency, with the four factors above being
present, registration will be required.
The APAC Workgroup will commence a process with APAC and the Registrar with a view to engage DAFF to
update and amend the current laws. In the meantime, however, agents will be required to comply with the
above.

Click here to download the document: apac-requirement-to-register-for-trade-on-local-market