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Policy Directive on Exportation of Scrap Metal Extended

January 7, 2021

Department of Trade, Industry and Competition

The Policy Directive on the Exportation of Ferrous and Non-ferrous Waste and Scrap Metal has been extended until 31 July 2021.

The trade, industry and competition department sought comment on the extension in November 2020.

The Policy Directive limiting the export of ferrous and non-ferrous scrap metal came into force in 2013.

It set out the policy in terms of which the International Trade Administration Commission (ITAC) was to exercise its powers under the ITA Act in administering the exportation of ferrous and non-ferrous waste and scrap metal.

ITAC subsequently issued export control guidelines.

The guidelines put in place a price preference system to assist domestic users, processors and recyclers to purchase scrap metal at a preference price for local consumption before the metal is exported.

The guidelines also contained substantiated proposals on what the price percentage lower than the Metal Bulletin price as determined in Rotterdam should be.

Local foundries, mills and smelters of scrap metal are given first option to buy the scrap at the preferred price for which an export permit has been applied for.

If no interest is shown in the metal by local operators within 30 days, then the exporter is able to continue with the export plans.

The price preference system is managed by the ITAC.

In 2019 the Policy Directive was extended until 31 March 2020 and then further extended until 31 December 2020.

The extensions were implemented to enable treasury and the trade, industry and competition department to finalise the implementation of an export tax on scrap metal.

According to the latest notice published in Government Gazette 44008, the trade, industry and competition minister, Ebrahim Patel, extended the Policy Directive for a further six-month period from 31 December 2020 until 30 June 2021 to allow for the finalization of the process on the implementation of an export tax on scrap metal.

The extension will also enable consideration by the department and ITAC on which aspects, if any, of the Policy Directive may be continued in order to complement and support the operation of the export tax on ferrous and non-ferrous waste and scrap metal.

Other notices published by the department in December include:


• Gazette 44010 – extension of the designation of the South African Petroleum Industry Association in terms of section 10(3)(b)(iv) of the Competition Act until 31 March 2021;
• Gazette 44018 – amended terms of reference for the Land Based Public Passenger Transport Market Inquiry – to be completed on 31 March 2021;
• Gazette 44024 – application by the South African Petroleum Industry to the Competition Commission to be exempted from Chapter 2 of the Competition Act for ten years – comment invited within 20 business days;
• Gazette 44031 – anti-dumping duties on wire ropes and cables imported from Germany and the UK and stranded wire from China to remain in place.
• Gazette 44037 – Price Preference System on the Exportation of Ferrous and Non-Ferrous Waste and Scrap extended until 31 July 2021 or the date on which the export duty/tax on the exportation of scrap metal is fully implemented at a rate that is higher than 0% (zero percent), as approved by Parliament, whichever date comes first.
• Gazette 44048 – call for comment on draft standards in terms of the Standards Act – also contains new and amended standards.

Meanwhile, in a statement, the department announced the start of preferential trade for South African firms under two new Trade Agreements – African Continental Free Trade Agreement and the SACU, Mozambique – UK Economic Partnership Agreement.