On 28 July 2021, the International Trade Administration Commission of South Africa (ITAC) published a Government Gazette Notice on the “Extension of the Policy Directive on the Exportation of Ferrous and Non-Ferrous Waste and Scrap Metal”.
The Notice reads:
EXTENSION OF THE POLICY DIRECTIVE ON THE EXPORTATION OF FERROUS AND NON-FERROUS WASTE AND SCRAP METAL
1. By virtue of the powers vested in me in terms of section 5 of the International Trade Administration Act, 2002 (Act No.71 of 2002), I, Ebrahim Patel, Minister of Trade, Industry and Competition, hereby notify as follows –
a) On 10 May 2013 the Minister of Economic Development (the Minister) issued a Trade Policy Directive to the International Trade Administration Commission of South Africa (ITAC) in terms of section 5 of the International Trade Administration Act No.71 of 2002 on the exportation of ferrous and non-ferrous waste and scrap metal and subsequently reviewed and extended the Policy Directive.
b) On the 17 December 2020, in Government Gazette No. 44008, the Minister extended the Policy Directive for a further period of 7 months until 31 July 2021 to allow for work by the South African Revenue Service (SARS) to bring the export tax on ferrous and non-ferrous waste and scrap metal into operation in terms of any applicable taxation law; and consideration by the department and ITAC on which aspects, if any, of the Policy Directive may be continued in order to complement and support the operation of the export tax on ferrous and non-ferrous waste and scrap metal.
c) On 9 February 2021, industry stakeholders adopted the Steel and Metal Fabrication Masterplan 1.0 (the “Masterplan”). The Masterplan provides a blueprint for growth and renewal in the steel and metal fabrication industry. As part of the Masterplan, a working group on scrap metal, involving key stakeholders from across the industry, was established to determine which, if any or all, of the Policy Directive should remain following the commencement by SARS of the export tax on ferrous and non-ferrous waste and scrap metal. The working group has recommended to the Minister that the Policy Directive be extended for a further long-term period to provide policy certainty for the downstream beneficiation industry.
d) In Government Gazette No. 44758 of 24 June 2021 stakeholders and interested parties were invited to submit representations and comments regarding the proposed extension of the Policy Directive from 31 July 2021 until 31 July 2023 following the recommendation from the working group on scrap metal taking into account the recently adopted Masterplan for the steel industry.
e) Following consideration of the matter, the aim of the Masterplan for growth and renewal of the steel and metal fabrication industry and comments received, I hereby extend the Policy Directive issued to ITAC in terms of section 5 of the International Trade Administration Act, 2002 for a period of two years from 31 July 2021 to 31 July 2023.
Ebrahim Patel, Minister of Trade, Industry and Competition, Date: 27 July 2021
The draft amendments are accessible at:
https://www.gov.za/sites/default/files/gcis_document/202107/44905gon654.pdf
Story by: Riaan de Lange