A public consultation process will allow for public responses to the government’s proposed chrome ore tariff until October 31.
Intended to revive South Africa’s struggling chrome industry, the export of chrome will require a permit issued by the International Trade Administration Commission (Itac), but there has been fierce opposition to the tariff since it was first announced in June.
In the latest development, the Department of Trade, Industry and Competition (dtic) announced on October 3 that it invited public comment to the export control measure.
According to Kgothatso Nkgadima of XA Global Trade Advisors: “The notice attributes the decline in the chrome value chain to a combination of rising electricity costs, global market pressures and the unregulated export of raw chrome ore.”
She said the government’s stated objective was to strengthen domestic beneficiation by ensuring that a greater portion of South Africa’s chrome was processed locally before export.
“The Cabinet has approved this approach as part of the broader industrialisation and value-addition strategy. While the intention is framed as supporting long-term competitiveness, the notice provides little detail on how the proposed permit system will operate in practice, including what conditions will apply, how permits will be issued, or how long they will remain valid.”
The DTIC announcement represented the first formal opportunity for stakeholders to comment on the proposed measure, said Nkgadima.
“Once the comment period closes, Itac is expected to publish a subsequent gazette setting out the permit conditions and implementation timelines. From that point, the export control framework would become effective, either immediately or on a specified future date.”
Subject under the tariff sub-heading (2610.00), parties interested in submitting responses are requested to email info@xagta.co.za, by October 31.
