In a Government Gazette of 02 August 2013 the International Trade Administration Commission of South Africa (Itac) released its export control guidelines on the exportation of ferrous and non-ferrous waste and scrap. According to the notice the Minister of Economic Development issued a trade policy directive in accordance to the International Trade Administration Act (the Act) that Itac exercise its powers under the Act to regulate the exportation of ferrous and non-ferrous waste and scrap (scrap metal). The regulation entails not allowing the exportation of the scrap metal unless it has been offered for local beneficiation to domestic consumers of the goods for a period determined by Itac and at a price discount or other formula determined by Itac. Itac is tasked with ensuring that the type and quality of the scrap metal extended for export is accurately reflected on applications for export permits. In addition, that all permit applications are accompanied by a letter or certificate by a metallurgical engineer or an otherwise suitably qualified person, confirming the type, quality and quantity of the goods available for export, as well as when and where such goods may be inspected by prospective buyers (domestic consumers). In accordance with Itac’s Price Preference System for Ferrous and Non-Ferrous Waste and Scrap, scrap metal will be allowed to be exported only if the scrap metal concerned was offered to domestic consumers at a price that is 20% below the international spot prices for the published types and grades of scrap metal. The Price Reference at which scrap metal must be sold to domestic consumers will be calculated as follows: (i) The price reference calculations will be done by Itac for scrap metal in respect of all the different types and grades using the Spot Market Report available from www.scrapindex.com. From the average price achieved during the previous month for the different types and grades of scrap metal as reflected in the www.scrapindex.com spot market price, an amount of 20% will be deducted to reflect the price to be paid by the domestic consumers. (ii) Calculations will be done at the end of each month and published monthly after such calculation on the Itac website as the preferential discount price at which the specific type and grade of scrap metal is to be offered to domestic consumers next month. A technical Working Group consisting of the one representative of the Metal Recyclers Association, the South African Iron and Steel Institute (SAISI), the Institute of Foundry-men, the Aluminium Federation of South Africa, Copalcor, the Recyclers Association of South Africa, any other applicable industry representative organisation, and Itac, may meet as and when required to discuss issues specific to the administration of the Price Preference System. The details of the administration process and procedure of the Price Preference System are contained in the 5-page Government Gazette notice.
