The Copper Development Association Africa

SECOND-HAND GOODS BILL

Oral Submission

John Cross

Greg Hoets

Overview

• Background to the Regional Copper Industry

• Introduction to the Copper Development association Africa

• Comments on the Second Hand Goods Bill

South African Copper Industry

• Primary Copper Sector: 100000 tons• Imported Primary copper rod (2007 trade stats)

15000 tons

• Secondary copper consumed (Industry estimate)40000 tons

• Secondary Copper exported (2007 trade Stats) . 80000 tons

• To a value of R3 billion

Copper Based scrap Exports 1997 - 2007

R 0

R 50,000,000

R 100,000,000

R 150,000,000

R 200,000,000

R 250,000,000

R 300,000,000

R 350,000,000

Rand/Month

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Kg/ Month

Export Vaue

Export Volume

Trend Volume

Trend Value

An industry trade association

• 37 member companies representing the major regional copper producers and consumers

• Regional representation includes Swaziland and Zambia

CDA Africa

Second Hand Goods Bill

The CDA would like to congratulate BAC for the formulation of the Bill and its progress through the legislative process.

It fully supports the Act and any comments made are in the spirit of improving the implementation of the Act

Second Hand Goods BillRef 2 (1)This Act does not apply to – (b). “any dealer who is a member of an accredited association to the extent

that the Minister by notice in the Gazette exempts members of such an association from any or all of the provisions of this Act.There are certain provisions of the act which are fundamental to the regulation of the industry which is largely cash based and open to abuse.These are: 1.Registration with the Commissioner

2. Maintenance of registers in the prescribed format.3. Inspection of the goods and registers by

members of the SAPS.The exclusion of certain dealers from these requirements through the membership of an accredited association could result in complications in the enforcement of the act. e.g. Should a member of SAPS request entry to a premises to view a registration certificate, goods register or inspect goods, it may be denied on the grounds that the dealer is a member of an accredited industry association and therefore exempted from the provisions of the Act

Second Hand Goods BillSection 17 (b), the accredited dealers association must establish

and maintain minimum legal and ethical standards with regard to its members and may establish different standards with regard to the different categories of dealers:

Should the obligation of an accredited industry association be not only to establish and maintain the standards but enforce them?

. The variation in legal and ethical standards envisaged in 17 (b)

should in no way permit dealers to operate with a lower ethical or legal standard than that contemplated in the provisions of the act.

Section 17 does not cater for the accredited industry association to inspect the registers or goods of its members. Thus dealer members should not be exempt from this provision in terms of 2.(1) (b)

Second Hand Goods BillMember Registers21. Every accredited association must –

(a) keep a register of all members in the prescribe form: and(b) Submit an annual report to the National Commissioner containing such information as may be prescribed

Suggest that the following be inserted:(c) Have the register available for inspection by a police official or

person appointed in terms of 32

Second Hand Goods BillIn terms of the definitions, “recycle” means to melt, smelt, granulate,

shred, dismantle, sort, grade, cut or prepare, either by hand or by the use of specialized plant machinery and equipment, for use by a consuming works such as foundries, mills, smelters, refiners and manufacturers.

In terms of Chapter 6, 26. (1) Every dealer who engages in the business of recycling any controlled metal, must apply to be registered as a recycler, in addition to having to be registered in terms of section 3.

In essence any dealer who does basic cutting, hand sorting and grading of metal would have to be registered as a recycler. Other than the most basic collector of scrap metal, most dealers would fall under this definition.

Would the registration of a dealer be more onerous than the registration as a dealer?

Should dealers who are not registered as recyclers be prohibited from changing the form or altering the appearance of the scrap metal?

Second Hand Goods BillThe simplest method of destroying the identity of copper cable is

through the burning of the cable to remove the protective covering and insulation. In the formal sector this process is unnecessary as cable can be granulated and the plastic and ferrous products separated from the non-ferrous conductors. Burning not only degrades the copper is environmentally unfriendly and is a frequently used method to destroy the identity of stolen conductors.

Should a dealer be prohibited from being in the possession of burnt copper cable?

The act is silent in this respect.

Second Hand Goods BillThe regulations regarding the format of the registers should be such

that provisions of 24(1) (d) cannot be circumvented by backdating an entry.

Schedule 2 Controlled MetalsCobalt should be included?

Thank You