On 15 May 2023, the International Trade Administration Commission of South Africa (ITAC) called for comment on the proposal to prohibit the export of certain ferrous and non-ferrous waste and scrap metal and the temporary suspension of the price preference system insofar as it relates to certain ferrous and non-ferrous waste and scrap metal for a further period of nine months. Comment is due by 29 May 2023.
All comments and submissions must be submitted to the Director-General of Trade, Industry and Competition, marked for the attention of Mahendra Shunmoogam, either by email on metalpolicy2023@thedtic.gov.za or hand-delivered at 77 Meintjies Street, Block A, 1st floor, Sunnyside, Pretoria, 0002.
The Government Gazette Notice reads:
“In the Government Gazette Notice of 30 November 2022, the Minister of Trade, Industry and Competition (the Minister) published a Trade Policy Directive and Notice in terms of sections 5 and 6 respectively, of the International Trade Administration Act, 71 of 2002 (the ITA Act) (the Trade Directive and Notice), that:
(i) ferrous and non-ferrous waste and scrap metal of a kind listed in the schedule to the Trade Directive and Notice (Scrap Metal) may not be exported from the Republic of South Africa for a temporary period of six months (from 30 November 2022 to 30 May 2023), subject to certain provisos; and
(ii) the International Trade Administration Commission of South Africa (ITAC) shall suspend the operation of the Price Preference System for the exportation of ferrous and non-ferrous waste and scrap metal (the PPS) insofar as it relates to Scrap Metal for a period of six months (from 30 November 2022 to 30 May 2023), subject to a certain proviso.
The Trade Directive and Notice forms part of Phase 1 of the Policy Implementation Actions on Measures to Restrict and Regulate Trade in Ferrous and Non-Ferrous Metals Waste, Scrap and Semi-Finished Ferrous and Non-Ferrous Metal Products to Limit Damage to Infrastructure and the Economy published in Government Gazette No.47627 (the Policy).
Phase 2 of the Policy includes the enhancement of the regulation of scrap metal trade through amendments to the Regulations published under the Second-Hand Goods Act, 6 of 2009, to bolster the applicable metal trading registration regime, as well as further interventions such as the limitation of ports and land borders for export of waste, scrap and semifinished metal products.
The Policy provides that if sufficient progress had not been made in the implementation of the Phase 2 interventions and/or the extent of copper and ferrous metal theft had not been sufficiently reduced, the temporary export prohibition may be extended.
Feedback received, in particular from Transnet, Eskom and the South African Police Service (SAPS), indicates that from 30 November 2022, the theft of copper and ferrous metal has reduced but remains at very high levels and continues to cause considerable damage to the infrastructure and to the economy.
Although progress has been made in the implementation of Phase 2, it is estimated that Phase 2 will take approximately nine months to implement. Such implementation includes the development of an electronic registration and trading system, for which a service provider has been appointed.
The Minister proposes issuing a Trade Policy Directive and Notice in terms of Sections 5 and 6 of the ITA Act that:
(i) Scrap Metal may not be exported from the Republic of South Africa for a further temporary period of nine months (the Temporary Export Prohibition); and
(ii) ITAC shall suspend the operation of the PPS insofar as it relates to Scrap Metal for a further temporary period of nine months or until the date on which the PPS terminates, whichever is the earlier (the Temporary PPS Suspension).
If sufficient progress has not been made in the implementation of the Phase 2 interventions and/or the extent of copper and ferrous metal theft has not been sufficiently reduced, the Temporary Export Prohibition and the Temporary PPS Suspension may be extended.
The Minister requests interested parties to make submissions and/or comments on the proposal.”
The description of the goods in question are:
- Ferrous waste and scrap, remelting scrap ingots of iron or steel except for: (i) waste and scrap of stainless steel, and (ii) ferrous waste and scrap generated in the ordinary course of business as a by-product of a manufacturing process
- Tariff heading 72.04 (excluding tariff subheading 7204.21)
- Copper waste and scrap
- Tariff subheading 7404.00