Block Exemption for Promotion of Exports Under the Competition Act

Posted 03 September 2026 Written by Acts Online
Category Competition Law

Brought to you by SAnews: The Minister of Trade, Industry and Competition has promulgated the Block Exemption for Promotion of Exports in terms of the Competition Act, No. 89 of 1998, establishing a regulatory safe harbour for designated collaborative export arrangements.

Under the Competition Act, No. 89 of 1998, the Block Exemption excludes specified categories of competitor collaboration from the restrictive horizontal practices prohibitions of Chapter 2, enabling South African businesses to address tariff barriers, high logistics costs, and international market entry hurdles collectively.

Permitted Categories of Collaboration

The regulations delineate specific operational areas where qualifying firms, industry associations, and Export Councils may lawfully cooperate:

  • Sharing landed costs, export-related infrastructure, and market intelligence;
  • Coordinating international logistics, freight consolidation, and overseas warehousing;
  • Jointly marketing and promoting South African goods and services in foreign jurisdictions;
  • Jointly negotiating or contracting with foreign buyers, where expressly permitted; and
  • Pooling resources to achieve economies of scale and operational efficiencies in external markets.

The Department of Trade, Industry and Competition (the dtic) and the Competition Commission of South Africa (CCSA) have cautioned that the regulation does not grant a blanket exemption from competition law. All collaborative conduct must remain strictly confined to export-related operations and the specific parameters set out in the exemption. Any spillover of coordination into the domestic market — including price-fixing, collusive tendering, or domestic market allocation — remains strictly prohibited under section 4 of the Act.

What this means for you, your business, or your clients

  • For yourself: Advise corporate boards and commercial clients on the precise boundary between permissible export collaboration and unlawful restrictive horizontal practices under section 4 of the Competition Act, No. 89 of 1998.
  • For your business: Review existing and planned joint logistics, marketing, or consortium agreements with competitors to determine qualification and governance requirements under the Block Exemption framework.
  • For your clients: Draft and audit joint negotiation protocols, information-sharing barriers, and export consortium agreements to prevent regulatory breach and guard against administrative penalties from the Competition Commission.

Originally published at https://www.sanews.gov.za/south-africa/exporters-urged-make-use-block-exemption-promotion-exports

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