Customs Updated:
31 Jul 2017

Tariff Book (S1 P1)
Scrap Metal Directive Extension - Comment due

 

In the Government Gazette of 02 May the Economic Development Department (EDD) announced the “Extension of the Policy Directive on the Exportation of Ferrous and Non-Ferrous Waste and Scrap Metal”, on which comment is due by 16 May.

Background

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 (the ITA Act) on the exportation of ferrous and non-ferrous waste and scrap metal. The Policy Directive set out the policy in terms of which Itac was to exercise its powers under the ITA Act in administering the exportation of ferrous and non-ferrous waste and scrap metal. Itac thereafter issued Export Control Guidelines which give effect to the Policy Directive. Itac amended the Export Control Guidelines by publishing the Amended Export Control Guidelines in the Government Gazette dated 12 September. 

The Directive stated that the policy would be in place for five years. It further noted that "at the end of this period, it will be reviewed to determine whether it should be terminated or extended for a limited period, with or without amendment." The Minister, in the Government Gazette dated 21 September 2018, renewed the Policy Directive for a period of nine months until 30 June 2019. In the Government Gazette dated 28 September 2018, Itac extended the Amended Export Control Guidelines on the Exportation of Ferrous and Non-ferrous Waste and Scrap.

In the Budget Speech of 20 February 2019, the Minister of Finance stated that the National Treasury would work with the Department of Trade and Industry and EDD to explore the introduction of an export tax on scrap metal.

Extension

The Minister is considering extending the Policy Directive for a period of nine months from 30 June 2019 until March 2020 to enable the National Treasury, the Department of Trade and Industry (the dti) and EDD to explore the introduction of an export tax on ferrous and non-ferrous waste and scrap metal and its implications for the Directive.

This notice is issued for comment by interested parties and stakeholders before the Minister decides whether to extend the Policy Directive. Stakeholders and interested parties are invited to submit representations and comments regarding the proposed extension of the Policy Directive. Representations and comments must be submitted within a period of 14 days from publication of this notice to the Minister.

Story by: Riaan de Lange