| 1.1 | Following the publication of the draft policy proposals 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 in Government Gazette No. 472021 on 05 August 2022 and taking into consideration the public comments on those draft policy proposals, Government intends to implement various interventions in what may broadly be described as a three-phased approach. |
| 1.2 | We first sketch a high-level overview of the various phases, followed by a more detailed discussion. |
| 1.2.1 | In phase 1, the focus is on interventions that are to be implemented without delay through the use of directives and notices: |
| 1.2.1.1 | imposing a temporary (six-month) prohibition on the export of copper waste and scrap metal, ferrous waste2 and scrap metal,3 and re-melting ingots of iron or steel, with exceptions for stainless steel and ferrous waste and scrap generated in the ordinary course of business as a by-product of a manufacturing process; |
| 1.2.1.2 | continuation of the export permit system for waste and scrap metal that is already subject to export control; |
| 1.2.1.3 | the creation of an export permit system for semi-finished metal products; |
| 1.2.1.4 | the creation of an import permit system for furnaces and various other scrap transformation machines. |
| 1.2.2 | In phase 2, the focus will be on the continuation of the measures referred to in paragraphs 1.2.1.2 to 1.2.1.4 above; and the enhancement of the regulation of the scrap metal trade through amendments to the Regulations published under the Second-Hand Goods Act 6 of 2009, which will bolster the applicable metal trading registration regime. Additionally, further interventions during this phase could include, for example, a limitation on the ports and land borders for export of waste, scrap and semi-finished metal products (more detail on these and other possible interventions is provided below). |
| 1.2.3 | Phase 3 will include legislative amendments to, for example, the Second-Hand Goods Act, other pieces of legislation and the possible introduction of new legislation to implement a metal trading regime, to prohibit the trade of waste, scrap and semi-finished metals in cash, and to blacklist offenders of the metals regime. |
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| 1 | http://www.thedtic.gov.za/wp-content/uploads/47202_5-8_TradeIndComp_Scrap_Metal.pdf. |
| 2 | Waste refers to materials that are not prime products (i.e. products produced for the market) and are intended to be discarded or are required to be discarded. Waste may be generated during the extraction of raw materials, during the processing of raw materials to intermediate and final products, during the consumption of final products, and during any other human activity. Waste does not include residuals directly recycled or reused at the place of generation (i.e. establishment) or waste materials that are directly discharged into ambient water or air. See https://www.oecd-ilibrary.org/sites/5ab8c6da-en/index.html?itemId=/content/component/5ab8c6daen. |
| 3 | Scrap metal includes any used, broken, worn out, defaced or partly manufactured goods made wholly or partly of non-ferrous or ferrous metal, lead or zinc or any substance of metallic waste or dye made of any of the materials commonly known as hard metals or of cemented or sintered metallic carbides. See section 1 of the Second-Hand Goods Act No. 6 of 2009. |
