South African Government has announced details of targeted measures to address the theft of public infrastructure for resale as scrap metal that causes more than ZAR 47 billion damages annually to the economy. The measures involve prohibition of export of scrap copper and ferrous metal for a six month period, which will be followed by a system to regulate trade in such metals.In Phase 1, three key interventions to be implemented:First, Government will impose a 6-month temporary prohibition on all waste and scrap copper and copper alloy exports and ferrous waste and scrap exports. Limited exceptions will be allowed for ferrous waste and scrap exports.Second, a permit system which will be administered by the International Trade and Administration Commission will apply to semi-finished copper exports.Third, import controls through a permit system will be instituted for furnaces and other scrap transformation machinery.In future phases, new measures will be introduced including prohibiting the use of cash in copper and scrap metal transactions, following legislative amendments; and limiting exports to a defined number of ports of exit.These measures were considered and approved by Cabinet on 16 November 2022, as part of a comprehensive package of measures to address the damage caused by metal theft to public infrastructure, the economy and communities.Official opposition and the second largest political party in South Africa, the Democratic Alliance has rejected the introduction of these regulations. DA said “Even though there are those who illegally benefit from recycling and trading with such metals, a significant proportion of traders in the industry do abide by the law and conduct legitimate business dealings. These traders will bear the brunt of Government onerous overreach, not the special interest groups in the upstream steel industry. The Government at large is attempting to address is a crime problem and not a trade policy issue. The situation therefore speaks to Government’s inability to capacitate law enforcement authorities to combat illegal activities in this regard. In fact, the Department is silent on how an already overstretched police force will be bolstered to enforce the newly introduced regulations, especially when they have shown themselves unable to do so hitherto.”
South African Government has announced details of targeted measures to address the theft of public infrastructure for resale as scrap metal that causes more than ZAR 47 billion damages annually to the economy. The measures involve prohibition of export of scrap copper and ferrous metal for a six month period, which will be followed by a system to regulate trade in such metals.In Phase 1, three key interventions to be implemented:First, Government will impose a 6-month temporary prohibition on all waste and scrap copper and copper alloy exports and ferrous waste and scrap exports. Limited exceptions will be allowed for ferrous waste and scrap exports.Second, a permit system which will be administered by the International Trade and Administration Commission will apply to semi-finished copper exports.Third, import controls through a permit system will be instituted for furnaces and other scrap transformation machinery.In future phases, new measures will be introduced including prohibiting the use of cash in copper and scrap metal transactions, following legislative amendments; and limiting exports to a defined number of ports of exit.These measures were considered and approved by Cabinet on 16 November 2022, as part of a comprehensive package of measures to address the damage caused by metal theft to public infrastructure, the economy and communities.Official opposition and the second largest political party in South Africa, the Democratic Alliance has rejected the introduction of these regulations. DA said “Even though there are those who illegally benefit from recycling and trading with such metals, a significant proportion of traders in the industry do abide by the law and conduct legitimate business dealings. These traders will bear the brunt of Government onerous overreach, not the special interest groups in the upstream steel industry. The Government at large is attempting to address is a crime problem and not a trade policy issue. The situation therefore speaks to Government’s inability to capacitate law enforcement authorities to combat illegal activities in this regard. In fact, the Department is silent on how an already overstretched police force will be bolstered to enforce the newly introduced regulations, especially when they have shown themselves unable to do so hitherto.”
