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Trade Policy Directive on the Exportation of Scrap Metal Amended

September 4, 2020

Department of Trade, Industry and Competition

The Trade Policy Directive on the exportation of scrap metal has been amended.

The trade, industry and competition department published the amendments in Government Gazette 43677.

The Trade Policy Directive was published in Gazette 43501 in July 2020.

The trade, industry and competition minister, Ebrahim Patel, called on the International Trade Administration Commission (ITAC) to urgently investigate whether the Policy Directive on scrap metal is continuing to meet its objectives.

ITAC was also instructed to determine whether there is a “shortage of scrap metal for the domestic processing industry, whether the discount, delivery and payment terms should be amended and whether another formula should be applied to achieve the objectives”.

ITAC had to complete the investigation within two months.

In the interim, no ferrous and non-ferrous waste and scrap of any kind was allowed to be exported during the investigation unless ITAC determined that it would not be used by the domestic processing industry.

However, existing export permits or applications made before the date of publication of the notice were not affected.

In the latest notice, the department points out that the minister received the outcomes of ITAC’s investigation resulting in proposed amendments to the Price Preference System Policy Guidelines published for comment in Gazette 43670.

The minister has also determined that it is appropriate to largely maintain the current status quo on the export of ferrous and non-ferrous waste and scrap metal contained in the Trade Policy Directive and Notice in place for a short period beyond 2 September 2020.

However, certain amendments will be made to “enable ITAC to consider export permit applications for the exportation of certain grades of scrap metals listed in the schedule to the Trade Policy Directive and Notice for which it determines through confirmation received from the domestic processing industry or the dtic sector desk, that the industry is not consuming this grade of scrap at the time of application”.

One amendment stipulates that suspension of the operation of the price preference system and the guidelines will be kept in place until 2 October 2020 or until the publication of amendments to the price preference system, whichever occurs first.

Another amendment indicates that no ferrous and non-ferrous waste and scrap as listed in the schedule may be exported from 3 July 2020 until 2 October 2020 or until the publication of amendments to the price preference system, whichever occurs first.