Metal products trade control

16th September 2022 By: Riaan de Lange

It is important for me to pay homage to the origin of this column, which came into being when a fairly youthful me approached the Creamers, proposing the initiation of a weekly column in this magazine about proposed changes in the Southern African Customs Union tariff and trade environment. Then, as now, the proposed changes tended to be published in the Government Gazette on Friday afternoons and rarely received mainstream media coverage.

Those who read the Government Gazette during August would understandably have assumed that it was “waste, scrap, semifinished metal, and machinery and metal appliance month”. August 5 saw the publication of ‘Policy proposals on measures to restrict trade in ferrous and nonferrous metals waste, scrap and semifinished ferrous and nonferrous metal products’ and its subsequent correction notice, as well as ‘Exportation of ferrous and nonferrous metals waste and scrap metal’ and its subsequent correction notice. Two more notices were published: ‘Import Control: Amendment: Comments invited’, and ‘Export Control: Amendment: Comments invited’. All four notices invited public comments by August 26.

Two more notices were published on September 2: ‘Import control guidelines on importation of certain metal processing machinery and mechanical appliances, including furnaces, granulators, guillotines and shredders’, and ‘Export control guidelines on exportation of semifinished metal products’. Comments on both are due today (September 16).

What you may not have realised from the notice headlined ‘Import Control: Amendment: Comments Invited’ is that it was, in fact, for industrial or laboratory furnaces and ovens, including incinerators, guillotines, shearing machines, granulators and shredders.

In the August 5 notice, Trade, Industry and Competition Minister Ebrahim Patel informed of his intention to include these products in the import control regulations. In one of the September 2 notices, the Minister expressed his intention to prohibit the import of certain metal processing machinery and mechanical appliances, including furnaces, granulators, guillotines and shredders, 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 (Itac).

The notice contains the ‘Guidelines on the importation of certain metal processing machinery and mechanical appliances, including furnaces, granulators, guillotines and shredders.’ Patel added: “These guidelines follow the draft policy proposals on measures to restrict and regulate trade in ferrous and nonferrous metals waste, scrap and semifinished ferrous and nonferrous metal products to limit damage to infrastructure and the economy published on August 5, 2022. Public comments on the draft policy proposals are currently being considered and the Minister has not taken a decision on these policy proposals. Itac is hereby issuing draft guidelines preparatory to the Draft Amendment Notice being finalised and subject to the condition that the said amendments proposed by the Minister in the Draft Amendment Notice come into force.”

This notice is in accordance with the ‘Export control guidelines on exportation of semifinished metal products’ notice, in which the Minister announces his intention to prohibit the export of certain semifinished metal products, except in accordance with the conditions stated in a permit issued by Itac. Similarly, contains ‘Draft export control guidelines on the exportation of semifinished metal products’.

The waste and scrap products include, among others, ferrous – remelting scrap ingots of iron or steel; copper – powders and flakes; nickel – powders and flakes; unwrought aluminium; aluminium – powders and flakes; unwrought lead; lead – powders and flakes; unwrought zinc; zinc – dust, powders and flakes; unwrought tin; tin; unwrought tungsten; and tungsten (wolfram).