On 14 July 2021, the South African Revenue Service (SARS) published an information notice on a new export duty on scrap metals. The objective of this duty is to provide foundries and mills with better access to higher quality and more affordable scrap metals in the local market. In turn this will result in the mills and foundries becoming more competitive cost wise and also attracting investments, creating employment and supporting industrialisation. It will also ease the pressure brought by unfair trade practices within the domestic metals industry.
On its “Export Duty on Scrap Metal” webpage, SARS offered the following:
Export Duty on Scrap Metals
What’s New?
14 July 2021 – A new export duty on scrap metals
In 2020, export duty on scrap metals was introduced in the Customs and Excise Act (1964), (the Act). The duty on the exportation of scrap metals will become compulsory for imported, locally obtained or manufactured scrap metal effective, 1 August 2021. As of this date, certain ferrous and non-ferrous waste and scrap metals will be subject to an ad valorem duty rate. The implementation of the export duty on ferrous and non-ferrous waste and scrap metals replaces the current Price Preference System, which was introduced to improve the availability of domestic scrap.
The export duty applies to exports to all countries, barring those that benefit from exemptions under trade agreements that South Africa is party to.
What is the objective of export duty on scrap metal?
The objective is to provide foundries and mills with better access to higher quality and more affordable scrap metals in the local market. In turn this will result in the mills and foundries becoming more competitive cost wise and also attracting investments, creating employment and supporting industrialisation. It will also ease the pressure brought upon by unfair trade practices within the domestic metals industry.
Where can I find the rates of duty on scrap metal?
Schedule No. 1 Part 6 of the Schedule to the Act (the Tariff), see Schedules to the Customs and Excise Act, 1964 – South African Revenue Service (sars.gov.za).
More information
For more information, email Exportdutyscrapmetals@sars.gov.za.
Story by: Riaan de Lange