Price preference system on exportation of scrap metal extended
08 Sep 2023
The price preference system on the exportation of ferrous and non-ferrous waste and scrap metal has been extended.
Export control guidelines issued by the International Trade Administration Commission (ITAC) 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.
In 2021 the Guidelines were extended until 31 July 2023.
They are now extended until 31 July 2027.
In Gazette 49057, the department announced the extension of the policy directive on the exportation of ferrous and non-ferrous waste and scrap metal.
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 ITAC was to exercise its powers under the act in administering the exportation of ferrous and non-ferrous waste and scrap metal.
The guidelines flowed from the policy directive.
In 2021 the policy directive was also extended until 31 July 2023.
It has now been extended for a further four years until 31 July 2027.
Article sourced from Sabinet.
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