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Export Duty on Scrap Metals

What’s New?

4 August 2021 – Frequently Asked Questions

See our Export Duty on Scrap Metal FAQs

30 July 2021 – For an overview of the key legislative requirements that are applicable to export duty on scrap metal view the Export Duty on Scrap Metal guide.

28 July 2020 – Update on Export Duty on Scrap Metal

In 2020, export duty on scrap metals was introduced in the Customs and Excise Act (1964), (the Act). The duty on the exportation of scrap metals will become compulsory for imported scrap metal cleared for home consumption and subsequently cleared for export and on locally obtained or manufactured scrap metal, effective, 1 August 2021. As of this date, certain ferrous and non-ferrous waste and scrap metals will be subject to an ad valorem duty rate. Your attention is also drawn to Government Gazette No. 44905 dated 28 July 2021 which provides for the extension of the policy directive by the Minister of Trade, Industry and Competition on the exportation of ferrous and non-ferrous waste and scrap metal to complement and support the operation of the export duty on ferrous and non-ferrous waste and scrap metal.  

23 July 2021 – Export Duty on Scrap Metal Implementation Roadshow

See our informative presentation on the impact and way forward.

14 July 2021 – A new export duty on scrap metals

In 2020, export duty on scrap metals was introduced in the Customs and Excise Act (1964), (the Act). The duty on the exportation of scrap metals will become compulsory for imported scrap metal cleared for home consumption and subsequently cleared for export and on locally obtained or manufactured scrap metal effective, 1 August 2021. As of this date, certain ferrous and non-ferrous waste and scrap metals will be subject to an ad valorem duty rate. The implementation of the export duty on ferrous and non-ferrous waste and scrap metals replaces the current Price Preference System, which was introduced to improve the availability of domestic scrap.

The export duty applies to exports to all countries, barring those that benefit from exemptions, under trade agreements that South Africa is party to.

What is the objective of export duty on scrap metal?

The objective of export duty on scrap metal is to provide foundries and mills with better access to higher quality and more affordable scrap metals in the local market. In turn this will result in the mills and foundries becoming more competitive cost wise and also attracting investments, creating employment and supporting industrialisation. It will also ease the pressure brought upon by unfair trade practices within the domestic metals industry.

Where can I find the rates of duty on scrap metal?

Schedule No. 1 Part 6 of the Schedule to the Act (the Tariff), see Schedules to the Customs and Excise Act, 1964 – South African Revenue Service (sars.gov.za).

More information

For more information, email [email protected].

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