Through a notice in the Government Gazette of August 2, the International Trade Administration Commission of South Africa (Itac) released export control guidelines on the exportation of ferrous and nonferrous waste and scrap.

According to the notice, the Minister of Economic Development issued the trade policy directive in accordance with the International Trade Administration Act and stated that Itac had exercised its powers under the Act to regulate the exportation of ferrous and nonferrous waste and scrap (scrap metal). The regulation forbids the exportation of scrap metal unless it has been offered, for local beneficiation, to domestic consumers of the goods for a period determined by Itac and at a price discount or other formula determined by Itac.

Itac is tasked with ensuring that the type and quality of the scrap metal intended for export is accurately reflected on application for export permits. In addition, all permit applications must be accompanied by a letter or a certificate issued by a metallurgical engineer or an otherwise suitably qualified person, confirming the type, quality and quantity of the goods avail- able for export, as well as when and where such goods may be inspected by prospective buyers (domestic consumers).

In accordance with Itac’s price preference system for ferrous and nonferrous waste and scrap, scrap metal will be allowed to be exported only if the scrap metal concerned was offered to domestic consumers at a price that is 20% below the international spot prices for the published types and grades of scrap metal.

The price reference at which scrap metal must be sold to domestic consumers will be calculated as follows:

• The price reference calculations will be done by Itac for scrap metal in respect of all the different types and grades using the spot market report available from www.scrapindex.com. From the average price achieved during the previous month for the different types and grades of scrap metal as reflected in the www.scrapindex.com spot market price, an amount of 20% will be deducted to reflect the price to be paid by the domestic consumers.
• Calculations will be done at the end of each month and published on the Itac website monthly after such calculation as the preferential discount price at which the specific type and grade of scrap metal is to be offered to the domestic consumers next month.

A technical working group consisting of one representative of the Metal Recyclers Association, the South African Iron and Steel Institute, the Institute of Foundrymen, the Aluminium Federation of South Africa, Copalcor (South Africa’s largest manufacturer and supplier of copper, brass and alloy-based semifinished products), the Recyclers Associa- tion of South Africa, any other applicable industry representative organisation and Itac may meet when required to discuss issues pertaining to the administration of the price preference system. The details of the admini- stration process and procedure of the price preference system are contained in the five-page Government Gazette notice.

South Africa’s Agoa Benefits Extended
On July 30, the Department of Trade and Industry (DTI) informed of the expiry of the US Generalised System of Preferences (GSP), popularly known as the African Growth and Opportunity Act (Agoa), on July 31. The notice further informed that Agoa would extend the benefits under the GSP programme to September 30, 2015.

According to the DTI, the expiry of the GSP programme on July 31 affected only non-Agoa beneficiary countries. Consequently, South African exporters to the US under the GSP programme will continue to enjoy preferential treatment under Agoa until September 30, 2015.

Agoa provides South African exporters with nonreciprocal customs duty-free access to the US. Taking into account the challenges that South African exporters are facing, Agoa provides exporters with the opportunity to establish nontraditional markets for its exports.

Sacu Five-Point Plan
On July 30, the DTI issued a media release following Trade and Industry Minister Dr Rob Davies’ briefing of the Parliamentary portfolio committee on Trade and Industry, in Cape Town, regarding progress on the implementation of the Southern African Customs Union (Sacu) Five-Point Plan.

Davies indicated that this was a work programme approved by the second summit, which was convened by President Jacob Zuma in 2011 and was premised on the following pillars: work programme on cross-border industrial develop- ment, trade facilitation, development of Sacu institutions, unified engagement in trade negotiations and a review of the revenue-sharing arrangement.

The Five-Point Plan emerged from a realisation by Sacu member States of a need to move Sacu beyond an arrangement held together only by common external tariffs and the revenue-sharing arrangement to an integration project that promotes real eco- nomic development in the region.

According to Davies, despite the good intentions embedded in the Sacu Agreement, there still remain challenges on how to advance this work programme. Davies noted that progress on the implementation of the plan was uneven. Sacu has registered good progress on trade facilitation and there is greater unity of purpose in negotiations with third parties, namely the Economic Partnership Agreement and the Sacu-India and Tripartite Free Trade Area agreements.

There is, however, limited progress on the review of the revenue-sharing arrangement and, consequently, a lack of adequate financial support for the implementation of cross-border industrial and infrastructure development projects. There is also a lack of progress on the development of Sacu institutions as a result of divergences in policy perspectives and priorities.

Enabling provisions facilitate the establish- ment of national bodies and a Sacu tariff board. The Sacu tariff board will make recommendations to the council on tariffs and trade remedies. Davies added that, until these institutions were established, their functions would be delegated to Itac in South Africa.

Davies emphasised the development of a common approach on trade and industrial policy as the prerequisite for establishing effective Sacu institutions in the future.

Said Davies: “Progress across all five pillars of the Sacu plan remains an important option to advance development integration in the Sacu region”. He highlighted that a discussion on appropriate decision-making procedures on sensitive trade and industry matters that took into account Sacu-wide impacts was required.

Frozen Potato Chips
A public hearing on the investigation on remedial action in the form of safeguards against increased imports of frozen potato chips is scheduled for 10:00 on September 4. Interested parties should indicate their intention to participate by 15:00 on August 21.