Trade, Industry and Competition Minister Ebrahim Patel has proposed to issue a Trade Policy Directive and Notice that scrap metal may not be exported from South Africa for a further temporary period of nine months and that the International Trade Administration Commission of South Africa (Itac) shall suspend the operation of the price preference system (PPS) insofar as it relates to scrap metal for a further temporary period of nine months or until the date on which the PPS terminates, whichever is earlier.

He has also requested interested parties to make submissions or to comment on the proposal.

This follows a government gazette in November 2022 where Patel published a Trade Policy Directive and Notice that ferrous and nonferrous waste and scrap metal of a kind listed in the schedule to the Trade Directive and Notice may not be exported from South Africa for a temporary period of six months (from November 30, 2022 to May 30 this year), subject to certain provisos; and that Itac shall suspend the operation of the PPS for the exportation of ferrous and non-ferrous waste and scrap metal insofar as it relates to scrap metal for a period of six months, subject to a certain proviso.

The Trade Directive and Notice formed part of Phase 1 of the Policy Implementation Actions on Measures to Restrict and Regulate Trade in Ferrous and Non-Ferrous Metals Waste, Scrap and Semi-Finished Ferrous and Non-Ferrous Metal Products to Limit Damage to Infrastructure and the Economy published in Government Gazette No. 47627.

Phase 2 of the policy included the enhancement of the regulation of scrap metal trade through amendments to the Regulations published under the Second-Hand Goods Act, to bolster the applicable metal trading registration regime, as well as further interventions such as the limitation of ports and land borders for export of waste, scrap and semi-finished metal products.

The policy provided that, if sufficient progress had not been made in the implementation of the Phase 2 interventions and/or the extent of copper and ferrous metal theft had not been sufficiently reduced, the temporary export prohibition may be extended.

The DTIC says feedback received, in particular from Transnet, Eskom and the South Africa Police Services, indicates that, from November 30, 2022, the theft of copper and ferrous metal has reduced but remains at very high levels and continues to cause considerable damage to the infrastructure and to the economy.

Although progress has been made in the implementation of Phase 2, it is estimated that Phase 2 will take about nine months to implement, the DTIC states.

Such implementation includes the development of an electronic registration and trading system, for which a service provider has been appointed.

If sufficient progress had not been made in the implementation of the Phase 2 interventions and/or the extent of copper and ferrous metal theft has not been sufficiently reduced, the temporary export prohibition and the temporary PPS suspension may be extended.

All comments and submissions must be submitted to DTIC director-general, marked for the attention of Mahendra Shunmoogam, either by email on metalpolicy2023@thedtic.gov.za or hand delivered at 77 Meintjies Street, Block A, 1st floor, Sunnyside, Pretoria, 0002, by no later than May 29.