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Price Preference System on Scrap Metal Extended

June 7, 2019

Department of Economic Development

7 June 2019

The Price Preference System on the Exportation of Ferrous and Non-Ferrous Waste and Scrap has been extended until 31 March 2020.

The economic development department announced the extension in Government Gazette 42516.

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.

The Amended Export Control Guidelines have also been extended and will remain in force until 31 March 2020.

The Policy Directive was recently extended by nine months from 30 June 2019 until 31 March 2020.

Meanwhile, in Gazette 42514, the department has listed mergers recently approved by the Competition Tribunal.

Mergers include the acquiring of Vumatel (Pty) Ltd by Community Investment Ventures Holdings (Pty) Ltd (“CIVH”), KLK Landbou Ltd by Senwesbel Ltd and Senwes Ltd, Edgars Consolidated Stores Ltd by New Holdco and Mercantile Bank Holdings Ltd by Capitec Bank Ltd.