The National Liquor Act and the Regulations
Why a new National Liquor Act?
The Liquor Act 59 of 2003 came into effect on 13 August
2004. Before proclamation, provincial Liquor Authorities were
responsible for the regulation of all the value chain categories
of the Liquor Industry. The Act provides for the manufacturing and
distribution of liquor to be regulated at national level while
micro manufacturing and retailing continue to be regulated at
A new National Liquor Authority (NLA), housed in the
Consumer and Corporate Regulation Division of the dti, is
responsible for administration of the Act. The NLA will receive,
evaluate and recommend to the Minister applications for national
manufacturing and distribution licenses and related matters.
A National Liquor Policy Council, comprising the Minister
of Trade and Industry and relevant Members of the Executive
Council of the provinces, will formulate and co-ordinate policies
and embody co-operative governance.
An important aspect of the new Act is social
responsibility. Those wishing to register must set out their
commitment to black economic empowerment, and their proposed
contribution to combating alcohol abuse, as well as how they will
restrict or promote job creation, diversity of ownership, exports,
competition, new entrants to the industry and efficiency of
operation. Failing to meet these commitments can result in a
review of or placing new conditions on registration.
|The liquor Act 59 of 2003 repeals the
1989 Act only in those provinces that have promulgated
provincial liquor legislation (Currently Eastern Cape and
Gauteng). The Liquor Act of 1989 remains in force in provinces
that have not promulgated liquor legislation. As from 13 August
2004 provincial liquor authorities can no longer regulate
activities of distributors and manufacturers whose liquor
volumes meet or exceed the set thresholds. Applications received
by provincial liquor authorities before this new Act must be
disposed of by them in terms of the 1989 Liquor Act.