2013
Implementation of PPS
PPS was implemented on 10 May 2013. With the objective to provide a discount of up to 30% on scrap metal to local buyers. Thus, it is first offered locally before it may be exported. It was set to be reviewed after 5 years.
2014
First amendment to PPS
The 2013 guidelines were replaced in September 2014 with new guidelines, stating the PPS calculations and what types of grades fall under aluminium and ferrous.
2015
PPS discount increase
In 2015, ITAC published a review on the PPS discount rates to increase from 20% to 30% for steel scrap and from 20% to 25% for scrap metal below the international benchmark price.
2018
9 Month extension of PPS
In September 2018 the guidelines were amended and extended for 9 months until 30 June 2019, replacing the 2014 guidelines. The 2018 guidelines showed the types of copper and brass grades as well as their percentage to the full LME price as well as new administration paragraphs about duly completed export permit applications which must be submitted to ITAC twice weekly
2019
Another 9 month extension of PPS
PPS was extended for 9 months up to 31 March 2020. Then again on 25 March it was extended up to 31 December 2020.
July - October 2020
Export ban
- No export permit may be granted after 3 July 2020 until the guidelines of PPS are renewed;
- No goods indicated in schedule 1 part 6 the Customs and Excise Act, 1964 may be exported between 3 July – 3 October 2020 or until the guidelines were amended;
- Guidelines were amended so that an export permit may be granted to certain grades of ferrous and non-ferrous scrap metals which are not used for domestic purposes.
May 2021
Transport shifted to seller’s account
- Substitution of paragraph 4.5 illustrating the ISRI grades of aluminium waste and scrap and stating that the LME index will be used as a benchmark price an amount of 25% will be deducted to reflect the price for the domestic consumers;
- By amending the wording of paragraph 4.6 by the deletion of the words: “…the monthly average Metal Bulletin, fob Rotterdam price…” and the insertion of the words:” …the daily, weekly, monthly or quarterly average Metal Bulletin, fob Rotterdam Price. . .”‘ This happened following the list of ISRI grades;
- Deleting paragraph 4.10 which indicated the 10% deduction for coastal areas on top of the PPS discount;
- Substitution of paragraph 8.16 stating that if the buyer decides for the inspection of the scrap metal on offer and the seller does not accept the valid offer for an invalid reason, the seller needs to compensate the buyer for the costs of the inspection.
August 2021
Export tax implemented
Rather than the export duty replacing PPS as intended, it is running concurrently with PPS.
September 2021
Change in PPS formula
Proposed amendment on the new proposed PPS formula. This formula indicates: LME convert to Rand x (percentage content – [less] 10%)
For example LME to Rand x 86% (Barley 96% – 10% = 86%) = R100 000 x 86% = R86 000
This formula was accepted on 25 February 2022.
February 2022
Implemented formula change of aluminium and red metal
August 2022
Proposed notice for export ban, export control on semi-finished products and import control furnace
Policy directive to limit damage to infrastructure and the economy.
September 2022
Guidelines for semi-finished and furnaces published
November 2022
Implementation of the export ban, import and export control on furnaces and semi-finished products
Policy to limit infrastructure theft.
May 2023
Proposed extension of the ban for 9 month
June 2023
Ban extended for 6 months
July 2023
Proposed further restriction on copper semi-finished product and ban on rail exports
November 2023
ProposePPS extended for 4 years up to 31 July 2027d further restriction on copper semi-finished product and ban on rail exports
November 2023
Proposed extension of the export ban for another six month (the ban was not extended)
July 2024
Proposed amendments
Proposed amendments to the Second Hand Goods Act, 2009, which will bolster the applicable metal trading registration regime, will be implemented as part of Phase 2.