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Export Duty on Scrap Metal on the Cards

October 21, 2019

Department of Trade and Industry

21 October 2019

Comment is sought on a proposed export duty on ferrous and non-ferrous waste and scrap.

The trade and industry department published the call for comment in Government Gazette 42782.

According to the notice, the trade and industry minister, Ebrahim Patel, has directed the International Trade Administration Commission (ITAC) of South Africa to investigate and advise on whether it would be appropriate to replace the existing Price Preference System (PPS) regulating the exportation of ferrous and non-ferrous waste and scrap metal with an export duty on scrap metal.

The PPS was introduced in September 2013 for an initial period of five years and extended twice, firstly until 30 June 2019 and, secondly, until 31 March 2020.

In Budget 2019, the finance minister, Tito Mboweni, announced that national treasury and the trade and industry and economic development departments will collaborate to explore the introduction of an export duty on the exportation of scrap metal to replace the PPS.

Proposed export duties include R1000 per ton on ferrous (including stainless steel); R3000 per ton on aluminium and R 8 426 on red metals.

Comment on the proposed export duties is invited until 15 November 2019.

Meanwhile, in Gazette 42775, the department has called for comment on proposed guidelines and conditions pertaining to imposition of an agricultural safeguard measure in terms of Article 35 of the Economic Partnership Agreement (EPA) between the European Union and its member states and the Southern African Development Community EPA states.

Agricultural products include edible offals, worked cereals, meat preparations, ultra high temperature (UHT) or “long-life” milk, preserved cucumbers and olives and chocolate.

Once the trigger volume for a specific product has been reached, ITAC will send a Minute to the minister of trade, industry and competition, recommending the imposition of an agricultural safeguard measure and indicating the amount of duty and time period.

Comment is invited within ten calendar days of the date of publication of the notice.

In Notice 561, the department seeks representation on a customs tariff application received by ITAC.

ITAC has applied for a review on Rebate Item 316.01/8415.90/02.06 on air conditioning machines for use in heavy vehicles.

The review seeks to assess the impact of a revised rebate provision given that the industry has evolved significantly since its implementation in 2001 and to align the rebate provision with the tariff structure and industry capabilities where applicable.