Commodity Levy

The blueberry industry was successful in 1995, with its application to have a commodity levy imposed on fresh and frozen blueberries for both the local and export markets. This means that all commercial growers of blueberries must pay a compulsory levy to Blueberries New Zealand

The Commodity Levies Act specifies that each levy has a life of only six years after which the Order in Council expires. Industries which wish to continue raising funds through a compulsory commodity levy, therefore need to reapply to Government to have a new levy applied.

The commodity levy order for the blueberry industry was renewed in 2001 for a further six years. Commodity levies are a compulsory levy which are given their status in law under the Commodity Levies Act 1990. This Act provides the general framework with which all commodity levies must comply. The detail of each levy, such as the product which is covered, who it is paid to, and how levy rates are set, is described in an individual Order in Council which is raised for each levy. The blueberry levy is imposed through the Commodity Levies (Blueberries) Order 2001. Copies of this legislation can be obtained from Bennetts Government Bookshops.

Details of the Commodity Levy on Blueberries

Whatmcommodity is levied?

All blueberries produced in New Zealand and sold on the domestic market or exported, as either fresh or frozen produce, are subject to the commodity levy.

In this sense,

• Export fresh blueberries means blueberries which are exported as fresh produce from New Zealand,
• Export frozen blueberries means blueberries which are exported in a frozen form from New Zealand,
• Local fresh blueberries means blueberries which are sold fresh by the commercial grower of blueberries, and are not for export or freezing,
• Local frozen blueberries means blueberries which are sold by the commercial growers of blueberries for other than export, either frozen or for later freezing,
• Fresh means having never been frozen, but frozen also includes thawed.

Who will pay the levy

All commercial grower of blueberries are primarily responsible for paying the levy on the blueberries they grow.

A commercial grower of blueberries is defined as an occupier of land in New Zealand;

• that at that time is used for growing blueberries for commercial purposes, and
• from which there was harvested and sold, at least 500kg of blueberries during the levy year to which the levy payment relates.

Exemptions from paying the levy

No commercial growers of blueberries are exempt from payment of the levy.

Who is the levy paid to

The organisation that the levy is paid to is:

Blueberries New Zealand Inc.,
PO Box 13 029, Hillcrest, Hamilton.
Ph: 07 856 6809, Fax: 07 856 3409 email: bishell@clear.net.nz

How is the levy calculated

The levy on blueberries sold in any season is calculated on the basis of the kilograms of blueberries produced in New Zealand and sold as either fresh, or frozen produce, either for consumption in New Zealand or exported. The levy is imposed on all commercial growers of blueberries.

What are the levy rates

The commodity levy on blueberries is paid at four different rates, which are listed below:

1. export fresh blueberries - 25 c/kg
2. export frozen blueberries - 3 c/kg
3. local fresh blueberries - 10 c/kg
4. local frozen blueberries - 3 c/kg

The rates of levy are fixed by BBNZ. By any means by which it can lawfully make such decisions. The rates of the levy, are effective from the time that BBNZ notifies the rates until the end of that levy year, and relates to blueberries harvested in that levy year. The levy year refers to the 12 months ended 30 June.

In subsequent years each of the rates of levy may be set by BBNZ, within the following conditions that each new rate:

• is no greater than for the year before, OR
• was approved by growers at the last AGM and is increased by no more than the most recently announced annual increase in the Consumers Price Index, OR
• was approved by growers at the last AGM and is later approved by the Minister of Agriculture.

In any year that levy rates are not set at the AGM, the levy will remain at the rates last set.

Can I have a say on how the money is spent

Each year at its Annual General Meeting, Blueberries New Zealand Inc. consults with growers on how levy money is being spent. BBNZ financial accounts for the previous financial year is presented to growers at this meeting. A budget for the current levy year is also presented and voted upon. Ward representatives may also call meetings from time to time to discuss expenditure of levy funds, if appropriate.

What is the levy spent on

The general purposes for which Blueberries New Zealand may spend the levy collected include:

• product research and development, including development of new varieties
• market research and development
• promotion of blueberries
• quality assurance
• education
• day to day administration of BBNZ

The levy can not be spent on commercial or trading activity.

BBNZ will spend all levy money paid to it, or invest it pending expenditure.

What provision is there for Conscientious objectors

Any commercial grower of blueberries who objects on conscientious or religious grounds to paying the levy in the manner provided for, 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 have the amount paid to BBNZ.

How do I pay the levy

There are two ways that the levy is paid to BBNZ:

1. For sales of:

   1. fresh or frozen blueberries, for consumption in New Zealand, and

   2. export frozen sales;

BBNZ will issue a return to all known commercial growers of blueberries each year after the season is completed. On this return (which also serves as a tax invoice on receipt), commercial growers of blueberries will declare their sales during the levy year to which the return relates.

Commercial growers of blueberries will calculate the levy due on sales during the levy year, by multiplying their declared sales by the relevant levy rate (which will be exclusive of GST). This calculation uses the kilograms sold at the first point of sale.

Commercial growers of blueberries will pay the levy to BBNZ once each year. It will be due on the date the levy declaration form (which also serves as an invoice) is issued, and the last date for payment is the 20^th of the following month.

For sales of blueberries which are exported fresh, exporters will be the collection agents. They will deduct the export fresh levy from the price paid to commercial growers of blueberries, and will not be able to charge a collection fee. The levy rates will be exclusive of GST.

BBNZ will invoice collection agents on a monthly basis for the levy they have collected on export fresh sales. Collection agents will pay the levy monthly, with it being due on the date the invoice is issued, and the last date for payment being the 20^th of the following month.

What happens to the information on me that is collected

When collecting the commodity levy, information on levy payers will be collected. BBNZ or any other persons who are involved in the collection of levies (for example collection agents), may not divulge any of this information in a form which identifies any individual grower unless required to do so by law, or the consent of the grower is obtained.

This will not affect, or prevent BBNZ from:

• using or disclosing such information for statistical and research purposes, but in a form which does not identify any individuals or individual trading entity,
• using the information for invoicing and collecting the commodity levy
• using the information for producing records or accounts under section 17(1) of the Commodity Levies Act 1990 (which relates to the rights of the Minister to have account audited), or
• using the information for the giving of evidence in any legal proceedings taken under or in relation to the blueberry commodity levy or under the Commodity Levies Act 1990 in relation to this order.
• using the information for producing any statement under section 25 of the Commodity Levies Act 1990 (production of annual reports and statements).

Information retention

Everyone involved in paying or collecting the blueberry commodity levy must keep the following information for two years from the end of the levy year to which it relates:

Commercial growers of blueberries must keep records of the quantities each year of:

• blueberries sold for export fresh
• blueberries sold for export frozen
• blueberries sold fresh for other than export, and other than freezing
• blueberries sold for other than export, either frozen, or for freezing

Each collection agent must keep records of:

• the names and addresses of growers from whom blueberries have been bought, and
• the quantities bought from each grower as fresh produce and the quantities then exported as fresh and as frozen, and
• the amount of levy deducted in respect of each quantity

Blueberries NZ Inc. must keep records of:

• each amount of levy money it receives, including when it was received and from whom, and
• how the levy money was spent or invested

Where can I get further information

For further information, please contact Blueberries NZ Inc. at:

PO Box 13 029, Hillcrest, Hamilton
Ph: 07 856 6809, Fax: 07 856 3409, email - bishell@clear.net.nz