ITAC pushes for SA to bar cash sales of scrap steel for export

The International Trade Administration Commission of South Africa (ITAC) wants to bar the export of scrap steel through cash transactions.

The move is part of the review of the 2013 price preference system (PPS) for scrap metal, and comes as South Africa's finally been removed from the Financial Action Task Force (FATF) grey list.

RELATED: South Africa removed from FATF grey list after two years of scrutiny

ITAC's mandate is to foster economic growth by establishing an efficient system for the administration of international trade subject to the International TradeAdministration Act.

On The Money Show, Chief Commissioner Ayabonga Cawe explains that they are targeting the scrap that would otherwise be destined for (legal) export.

"Under our export control regulations, this scrap would require a permit from the Commission, and if it indeed constitutes a duly completed offer to the domestic buyer, then that transaction must not happen in cash."

"Looking at the broad questions around the FATF, there is this need for these transactions on controlled metals to be undertaken through the national payments system so that they can be picked up there."

Cawe notes that this development of government moving towards these transactions having to be undertaken through an electronic system rather than cash on delivery, was already signaled in 2022.

Also on the cards, is a change to the discount offered through the PPS, for scrap metal which at the moment cannot be exported unless it's been offered to domestic customers at a discount to the international price at the time of sale.

ITAC wants the discount cut from the current 30% to 25%.

Cawe expands on the background to, and reasons for these decisions - take a listen in the interview audio at the top of the article