In a Government Gazette notice of 02 September, the Department of Trade, Industry and Competition (the dtic) announded the amendment of the International Trade Administration Commission of South Africa (ITAC) “Policy Directive on the Exportation of Ferrous and Non-Ferrous Waste and Scrap Metal.” The notice amends the Directive and Notice issued by the Trade, Industry and Competition Minister on 03 July.
The Policy Directive had been extended from time to time and is currently in place until 31 December 2020. During the period of the National State of Disaster, declared on 15 March in Government Gazette, the Minister received representations from the domestic consuming industry that there was a shortage of affordable scrap metal and the price preference system was not achieving the objectives of the Policy Directive, which was causing severe harm to the industry and affecting its recovery from the destructive effects of the COVID-19 global pandemic. The representations requested that urgent action be taken to remedy the situation. On 03 July the Minister issued a Policy Directive to ITAC to as a matter of urgency investigate whether the price preference system was achieving the objectives of the Policy Directive and in particular (but without limitation), whether there was a shortage of scrap metal for the domestic processing industry, whether the discount, delivery and payment terms should be amended and whether another formula should be applied to achieve the objectives.
As a consequence of the investigation the Minister decided to amend the Trade Policy Directive as follows:
- Amendment of Paragraph 2.1.4 of the Trade Policy Directive and Notice by the substitution of the following: "keep the suspension of the operation of the price preference system and the guidelines in place until 2 October 2020 or until the publication of amendments to the price preference system, whichever occurs first, and not accept or process any applications for an export permit for scrap metal made after 3 July 2020, provided that the price preference system and guidelines shall continue to apply to applications made before 3 July 2020, and export permits may be issued in respect of those applications.”.
- Amendment of Paragraph 2.2 of the Trade Policy Directive and Notice by the substitution of the following: “Notwithstanding the Export Control Notice, the Minister prescribes, in terms of section 6 of the Act, that no ferrous and non-ferrous waste and scrap of a kind listed in the schedule hereto may be exported from the Republic from 3 July 2020 until 2 October 2020 or until the publication of amendments to the price preference system, whichever occurs first, provided that.“
- Amendment of Paragraph 2.2.2 of the Trade Policy Directive and Notice by the substitution of the following: “2.2.2 ITAC may consider export permit applications for the exportation of certain grades of ferrous and non-ferrous metals listed in the Schedule hereto for which it determines: 2.2.2.1 are not used by the domestic processing industry; or 2.2.2.2 through confirmation received from the domestic processing industry or the dtic sector desk, that the industry is not consuming this grade of scrap at the time of application. Ferrous and non-ferrous metals for which export permits are issued in terms of this paragraph may be exported notwithstanding paragraph 2.2 above.”
The Notice is accessible at:
https://www.gov.za/sites/default/files/gcis_document/202009/43677rg11168gon952.pdf
Story by: Riaan de Lange