International Trade Administration Act, 2002 (Act No. 71 of 2002)

Notices

Amended Export Control Guidelines on the Exportation of Ferrous and Non-Ferrous Waste and Scrap

8. Miscellaneous
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8.1. Any member of the domestic consuming industry making an offer to purchase scrap metal must notify ITAC thereof in writing (within two (2) days of having made the offer).

 

8.2. All new entrant applicants will be subject to a verification inspection by ITAC before an application for an export permit is circulated to the various industry representative organizations. The inspection may delay the circulation of the application.

 

8.3. If an applicant for an export permit provides incorrect or false information in an application, ITAC may reject such application. If incorrect or false information is provided to ITAC, ITAC may also take any action available to it under the prevailing legislation, including but not limited to criminal prosecution.

 

8.4. Scrap metal listed in an application must be available for inspection during normal office hours as specified in paragraph 8.17 below by ITAC and by members of the domestic consuming industry during the period that such application is circulated to allow consumers to make offers. To allow for inspection, the scrap metal must not be placed in any container or otherwise, that would prevent the inspection of any portion of the scrap metal.

 

8.5. To illustrate the above, the storage of scrap metal in an ocean freight container will not be permissible during the circulation period because only the portion of scrap metal at the very front of the container (i.e. near the door) can be readily inspected. In instances where scrap metal is containerised during the 15-day circulation period, making it impossible for ITAC or prospective buyers to inspect, an export permit will not be issued.

 

8.6. ITAC may decline an export permit application on sufficient evidence if a particular quantity of scrap metal as applied for and circulated by ITAC does not meet the declared quantity, grade or specification. Photographic and other documentary evidence may be considered by ITAC.

 

8.7. An applicant will not be permitted to make offers and purchase a particular grade of scrap metal at a price preference level, while its subsidiary/holding company receives export permits for the same grade of scrap metal. This would be against the objectives as outlined in paragraph 2 above.

 

8.8. The foreign purchaser/user’s details must be provided to ITAC. If it is not possible for the applicant to provide full details of the foreign purchaser/user on the export permit application form, this must be done once an export permit is approved. Specifically, in the event of a permit application being approved, the exporter will be advised of the decision, the ITAC reference number, grade of the material, quantity and value. On receipt of confirmation as indicated here-in above, the exporter must submit full details of the foreign purchaser/user, including the name, physical address and country of destination to ITAC, only after which an export permit will be issued for supply/exportation to that particular consignee. Scrap metal to be exported shall not be supplied or exported to any buyer or country/place of destination other than as declared to ITAC.

 

8.9. The allocated volume of scrap metal per grade and quantity of scrap specified on each export permit issued, may not be transferred in any manner by the holder thereof to any other person, or be used to the benefit of any person not named in the permit.

 

8.10. Export documentation may be requested by ITAC after exportation of the scrap metal. This may include documentation such as the Second-hand Goods Act register entries for disposal, buyer’s purchase invoice, Bill of Lading, Bill of Entry for Export, SA Reserve Bank confirmation of payment received, and any other related export documentation.

 

8.11. The ISRI specification or grade of the scrap metal as declared to ITAC and reflected on the export permit must be declared on all export documentation including the sales invoice, container packing list, Bill of Lading and the Bill of Entry for Export, etc. Export container numbers must be declared on the original SARS Customs Bill of Entry for export before exportation of scrap metal as authorised in the permit. ITAC export permits for the exportation of scrap metal is valid for a period of two months only, as indicated on the permit.

 

8.12. Scrap metal 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 scrap metal is clearly described, and scrap metal 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.

 

8.13. A valid calibration certificate for each weighbridge and each scale used in the procurement and disposal of waste or scrap metal in terms of the PPS must be submitted to ITAC to ensure that correct quantities are declared.

 

8.14. It is accepted that applicants who apply for export permits to supply foreign buyers are fully equipped to supply local consumers. Applicants applying for export permits must therefore be in possession of adequate supply facilities including access to scrap metal for suitable trucks and heavy vehicles such as Tri-axle or superlink trucks to yards where scrap metal is located and must have adequate loading and weighing facilities. Shipping containers are not regarded as suitable for loading and transportation of scrap supplied to domestic consumers. Failure to provide adequate access, loading and weighing facilities shall be deemed a material impediment to the objectives of the PPS which may constitute grounds of refusal of an export permit. Parties are free to negotiate and agree on terms of sale which are mutually suitable.

 

8.15. Where a scrap metal consumer is able to produce a bank guarantee or letter, a longer payment settlement period of up to thirty (30) calendar days, in line with the bank guarantee or letter, will be regarded as sufficient for purposes of purchasing scrap metal in terms of the PPS. Parties are also free to negotiate and agree on payment terms which are mutually suitable.

 

8.16. If a consumer makes arrangements to inspect and/or physically inspects scrap metal on offer, and after such arrangements and inspection with the seller/applicant, a valid offer is not accepted for an invalid reason as envisaged by the PPS guidelines, the seller/applicant must compensate the consumer for reasonable costs incurred as a result of the inspection/ arrangements to inspect.

[Section 8(8.16) substituted by section 7 of Notice No. 305, GG44593, dated 21 May 2021].

 

8.17. All PPS-related transactions must be concluded during normal office hours, being 8.00 am to 5.00 pm weekly and 8.00 am to 1.00 pm on Saturdays or public holidays (excluding religious holidays), unless otherwise agreed upon by all parties involved in that particular transaction.

 

8.18. All export permit applicants must be in possession of an approved radiation detector to detect radio-active sources and material prior to off-loading of scrap metal which may contain such radio-active sources or material. A sworn affidavit from the applicant must be submitted to ITAC to confirm possession of such a detector in full working condition.

 

8.19. Payment for scrap metal purchased in terms of the PPS must be by means of bank transfer, electronic transfer or other payment methods but may not include payment in cash.