In the Government Gazette of 27 September 2024, the International Trade Administration Commission of South Africa (ITAC) extended an invitation for comment on its 12-page “Amended Export Control Guidelines on the Exportation of Ferrous and Non-Ferrous Waste and Scrap Review of the Price Preference System (PPS) Guidelines”, which is due by 25 October 2024.
1. Introduction
1.1 ITAC is embarking on a review of the guidelines issued in connection with the PPS for waste and scrap metals (scrap metal).
1.2 The purpose of this review is to determine how the overall effectiveness and efficiency of the PPS might be improved.
1.3 In connection with its review, ITAC is seeking public comment, in particular on the issues identified in the Discussion section below.
2. Background
2.1 On 10 May 2013, the then Minister of Economic Development issued a trade policy directive (the Directive), in terms of Section 5 of the International Trade Administration Act, 2002. ITAC exercises its powers under the Act to regulate the exportation of scrap metal.
2.2 The objectives of the Directive are, inter alia, to regulate scrap metal exports so as to ensure an affordable domestic supply of quality scrap metal, an essential material for the domestic processing industry, to safeguard employment and to maintain and increase industrial capacity.
2.3 In response to the Directive, ITAC established the PPS. The administrative aspects of the PPS are set out in the Guidelines, initially published in the Government Gazette notice of 28 September 2018.
2.4 The Guidelines have been amended from time to time to address issues arising from the administration of the PPS.
2.5 The current version of the Guidelines was published in the Government Gazette notice of 02 October 2020.
2.6 The Guidelines provide, inter alia, that ITAC will not permit the exportation of specified scrap metal unless it has first been offered for sale to the domestic-consuming industry, for domestic beneficiation, at a price discount and on additional terms as set out in Guidelines.