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.  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. 

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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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