On 24 December 2020, the International Trade Administration Commission of South Africa (ITAC) announced an “Extension of the Price Preference System on the Exportation of Ferrous and Non-Ferrous Waste and Scrap”.
According to the Notice, on 10 May 2013 the then Minister of Economic Development issued a Trade Policy Directive to ITAC in terms of Section 5 of the International Trade Administration Act, 2002, that ITAC exercise its powers under the ITA Act to regulate the exportation of ferrous and non-ferrous waste and scrap metal.
ITAC established a Price Preference System (PPS) pursuant to which it would not authorise the exportation of ferrous and non-ferrous waste and scrap metal unless it had first been offered for sale for domestic beneficiation, to the domestic consuming industry, for a period and at a price discount or other formula determined by ITAC. The PPS was implemented during September 2013 for a period of five (5) years.
The Minister, in a Government Gazette Notice of 21 September 2018, extended the Policy Directive for a period of 9 months until 30 June 2019. In a Government Gazette Notice dated 24 May 2019, the Minister extended the Policy Directive for another period of 9 months until 31 March 2020.
On 20 March 2020 the Minister of Trade, Industry and Competition, in the Government Gazette Notice, extended the Policy Directive for a further period of nine (9) months from 01 April 2020 until 31 December 2020.
On 17 December 2020 the Minister of Trade, Industry and Competition, in the Government Gazette extended the Policy Directive for a further period of seven (7) months from 31 December 2020 until 31 July 2021.
The Amended Export Control Guidelines on the Exportation of Ferrous and Non-ferrous Waste and Scrap as contained in the Government Gazette Notice dated 02 October 2020 are herewith extended and will remain in force, in accordance with the Minister’s Policy Directive, until 31 July 2021 or the date on which the export duty/tax on the exportation of scrap metal is fully implemented at a rate that is higher than 0% (zero percent), as approved by Parliament, whichever date comes first.
A copy of the Notice is available on request.
Story by: Riaan de Lange