Government and ITAC getting tough on those that try to bypass scrap metal export ban and export scrap metal as semi-finished metal products.
In Government Notice No. 1212 published in Government Gazette No. 47202 dated 5 August 2022, the Minister of Trade, Industry and Competition (the “Minister”) published a draft notice for public comment in terms of which the Minister proposed amending the export regulations contained in Government Notice No. R. 92 published in Government Gazette No. 35007, dated 10 February 2012, as amended, to prohibit the export of certain semi-finished metal products, except under the authority of and in accordance with the conditions stated in a permit issued by the International Trade Administration Commission of South Africa (the “Commission”) (the “Draft Amendment Notice”).
Government and ITAC are getting tough on those that try to bypass the scrap metal export ban and export scrap metal as semi-finished metal products
The amendments to the Import Control Regulations by the Minister of Trade, Industry and Competition in terms of Section 6(1)(b) of the International Trade Administration Act, 2002 (Act No. 71 of 2002) were published in Notice No. R. 2804 in Government Gazette No. 47627 of 30 November 2022.
In terms of the amendment notice, semi-finished metal products shall not be exported from the Republic of South Africa except under the authority of and in accordance with the conditions stated in a permit issued by ITAC.
An application form must be accompanied by the following documents:
Any required environmental operating permit
A sworn affidavit deposed to by the managing director or similar official of a business that the information provided in the Application Form is correct to the best of his or her knowledge
Details of the materials from which the subject products were produced
If scrap metal was used in the manufacture of the subject products, proof of registration of the applicant as a scrap metal dealer/recycler in terms of the Second-Hand Goods Act, 2009 (Act No. 6 of 2009)
A valid SARS tax clearance certificate
If scrap metal was used in the manufacture of the subject products for which application is made and such scrap metal was purchased by the applicant, the applicant must provide:
The date of purchase
The type of metal purchased
The grade of metal purchased
The tonnage purchased
Total cost of the purchase
The sellers’ company or close corporation registration number, or in the case of an individual, identity number
Proof of registration of the seller as a scrap metal dealer (if applicable) in terms of the Second-Hand Goods Act, 2009 (Act No. 6 of 2009); or
Sourced from the applicant’s own production, the applicant must provide proof thereof
If the information is not available at the time of the export permit application it must be submitted to ITAC retrospectively, at such time as directed by ITAC, for all quantities exported on export permits issued.
If the export applicant is the appointed wholesaler or retailer for a manufacturer of the subject products, such appointed wholesaler or retailer must provide a written and signed appointment/agreement from the manufacturer. All relevant documentation must be available at any time for auditing purposes by ITAC, including but not limited to purchase invoices and all other relevant customs and export documentation. The above information may also be sourced directly from the manufacturer, if necessary.
In order to assist ITAC with the sound administration and proper adjudication of the export permit system, ITAC may from time to time and when circumstances warrant, require additional documentation/information in order to, inter alia, make an informed decision on an application for an export permit.
The port of export and the foreign acquirer’s details and country of destination details must be provided to ITAC with each application. A maximum of three destination countries may be applied for. An export permit will only be issued after such details are provided. The subject products to be exported shall not be supplied or exported to any acquirer or country/place of destination other than those declared to ITAC.
Subject products authorised for export by way of an ITAC export permit must be containerised and sealed on the exporter’s registered and licenced premises as declared to ITAC, after receipt of a valid ITAC export permit in which the subject products are clearly described. Subject products destined for export may not be containerised on any other premises not declared to ITAC in the application. Loaded and sealed containers for export must be conveyed from the exporter’s registered and licenced premises as declared to ITAC, directly to the port of export mentioned on the export permit.
These guidelines came into effect on the date of publication in the Government Gazette, namely 30 November 2022.
