Industry body welcomes proposed curbs on scrap metal export

KAMPALA (Scrap Monster): The Cape Chamber of Commerce and Industry has welcomed the proposed curbs on scrap metal exports by the South African government. According to the Chamber, the new curbs on exports will provide boost to domestic manufacturing industry, thereby creating more job opportunities.

The new regulations propose outright ban on cash payments for scrap. In addition, all scrap metal that has been approved for export has to be routed only through Port Elizabeth harbor. The main intention behind restricting exports through a single harbor is to ensure proper monitoring of goods. Janine Myburgh, President of the Chamber stated that they are delighted to know that some of their long-pending demands are now being considered by the government.

The Chamber, in a letter addressed to the International Trade Administration Commission of SA, welcomed the decision to ban cash payments for scrap metal transactions. Implementing bank transfers as the sole mode of payment makes clear record of transactions which could be traced after any period of time. It will also help to bring small players into the formal sector, thereby making them operate in accordance with commonly practiced business policies.

The Chamber had earlier demanded complete ban on scrap metal exports out of the country, so as to ensure supply of scrap to domestic manufacturing industry. It had also demanded imposition of heavy duty on exports out of the country. Although both these demands were not considered, the decision to restrict exports only through Port Elizabeth harbor is almost equivalent to imposing outright ban on exports. It expressed the hope that the proposed regulations will help to bring down rising incidents of copper theft in the country. The move will ensure availability of quality scrap top manufacturing industries in the country. This in turn will create increased number of job opportunities, it noted.