Description of the Feijoa Commodity Levy

Please note that this is a description of the levy - for actual terms and obligations, you should read the levy order (at Commodity Levies (Feijoas) Order 2001).

Definitions

The commodity that is levied

The levying organisation

The levy payers

Basis of The Levy

The rate the levy is set at

Notification of the rate of the levy

Having input on how the money is spent

What the levy can be spent on

Conscientious Objectors

Payment of the Levy

The information that is collected

Information Retention

Further Information

DEFINITIONS.

• Collection agent means a person whose business is or includes-
  - buying feijoas from a commercial grower (except through another collection agent) for processing, resale, or export; or
  - selling or exporting feijoas on behalf of a commercial grower
• Commercial grower or grower means a person whose business is or includes producing feijoas and who has more than 50 feijoa trees
• Feijoa means the fruit that has the scientific name Feijoa sellowiana or any fruit that is a hybrid of that species
• FOB value means the free on board value of any quantity of feijoas set out in the declaration attached to, or forming part of, the customs entry made in respect of the feijoas exported from New Zealand
• Levy year-means a period of 12 months that begins on 1 November and ends on 31 October in the following year and
• Processed, in relation to feijoas, means feijoas that are bottled, canned, dehydrated, dried, freeze-dried, frozen, or preserved; and includes feijoa concentrate, pulp, puree, or essence (whether alone or with other ingredients).

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The commodity that is levied

A levy will is imposed on feijoas grown in New Zealand for commercial purposes.

The levying organisation

The organisation that the levy is paid to is:

The New Zealand Feijoa Growers Association Inc

PO Box 29045,

Ngaio,

Wellington. Telephone

Email feijoa@itm.org.nz

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The levy payers

Commercial growers of feijoas are primarily responsible for paying the levy.

The levy is paid to the Association by collection agents.

A collection agent is someone who buys feijoas from a grower, or sells or exports feijoas on a grower's behalf, and under the levy order they will

• have to pay the levy on the feijoas they buy or sell on behalf; and
• be able to recover the levy from the grower by taking it off growers' payouts.

A collection agent may deduct from the levy collected, a collection fee of not more than 10% of the amount of levy.

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Basis of The Levy

The amount of levy payable is calculated as follows:

1. For feijoas sold by, or on behalf of, the grower in New Zealand, as a percentage of the price of the feijoas at the first point of sale.
2. For feijoas that are processed by the grower, as a percentage of the value of the unprocessed fruit which will be set by the association at its annual general meeting in the current levy year.
3. For feijoas that are exported, as a percentage of the FOB value of the feijoas (excluding GST).

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The rate the levy is set at

There is one rate of levy set for all feijoas. The maximum rate at which the Association is able to set this commodity levy is 2% of the price, as described above. The Association must fix the actual rate of levy at its annual general meeting or at a special general meeting which is called for that purpose. If a rate is not fixed in any year, then the rate previously set will remain.

Notification of the rate of the levy

As soon as practicable after setting the rate ofthe levy the Association will give notice of the rate in the Orchardist and in the industry newsletter to all potential levy payers known to the Association.

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Having input on how the money is spent

Each year at its Annual General Meeting, the Association will present its accounts for the past year, and a budget for the next. Growers will be able to discuss expenditure of the levy at this meeting, and any special meetings which may be called from time to time as necessary, according to the rules of the Association.

What the levy can be spent on

The general purposes for which the Association may spend the levy collected are:

• product research and development ,
• market research and development,
• promotion of feijoas,
• quality assurance ,
• education ,
• day to day administration of the Association.

The levy will not be spent on commercial or trading activity. The Association will spend all levy money paid to it, or invest it pending its expenditure.

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Conscientious Objectors

Any grower who objects on conscientious or religious grounds to paying the levy in the manner provided for by this levy, is able to pay the amount concerned to the Chief Executive of the Ministry of Agriculture and Forestry, and in such cases the Chief Executive will pay it to the Association.

Payment of the Levy

The due day for the payment of the levy is

• for feijoas sold by a grower in New Zealand, the date of sale by the grower:
• for feijoas processed by a grower, the date on which the feijoas are processed:
• for feijoas exported by a grower, the earlier of when the grower sells the feijoas, or when they are loaded onto an international carrier for export:

Levy monies must be paid to the association no later than the 20th day of the next month.

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The information on growers that is collected

When collecting the commodity levy, some commercially sensitive information is collected. The Association will not divulge any of this information unless required to do so by law.

This will not affect, or prevent the Association from:

1. using or disclosing such information for statistical and research purposes, but in a form which does not identify any individuals, or
2. assisting in the invoicing and collection of commodity levies
3. the production of records or accounts under section 17(1) of the Commodity Levies Act 1990 (which relates to the rights of the Minister to have accounts audited), or
4. the giving of evidence in any legal proceedings taken in relation to the feijoa commodity levy,
5. using such information to determine the voting entitlements, and to count the votes, of members of the Association.

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Information Retention

Feijoa growers have to keep for at least two years after the date of payment of the levy to the Association, the following information for each levy year:

1. the amount of levy paid to the association and the date of payment;
2. the quantity of feijoas sold, processed, or exported by the commercial grower
3. the name and contact details of every collection agent and exporter to whom feijoas are sold and the price paid.

The Collection Agents shall keep and retain for at least two years after the date of payment of the levy by them, the following information for each levy year:

1. the amount of levy paid to the association and the date of payment;
2. the quantity of feijoas purchased from a commercial grower and the price paid;
3. the quantity of feijoas sold or exported by the collection agent on behalf of a commercial grower;
4. the name and contact details of every commercial grower referred to in paragraph (b).

The Association shall keep and retain for at least two years after the date of payment of the levy by them, the following information for each levy year:

1. the amount of the levy money paid to it in that year and, in relation to each amount
2. the day on which it was received;
3. the person who paid it;
4. how (if at all) the levy money paid to it was invested; and
5. how and when all the levy money spent by it in that year was spent.

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Further Information

For further information, please contact The New Zealand Feijoa Association

The New Zealand Feijoa Growers Association Inc

PO Box 29045,

Ngaio,

Wellington. Telephone

Email feijoa@itm.org.nz

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