Scrap Metal Fraud Causes Export Firm Hefty Penalties

SEATTLE (Scrap Monster): A scrap metal export company in South Africa and its director have been cited for evading export duties by misdeclaring an export consignment of scrap metal.

The SA Revenue Services (SARS) noted that Cape Town-based ScrapMania and its director Joseph Daniel Hurling made false declaration to customs authorities. A penalty of R500,000 each was imposed on the company and the director. Hurling faces an additional fine of R100,000 in the Durban Regional Court.

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The export declaration for a total of 10 containers was made by Mirage Shipping in September last year, declaring the contents as “polymers and ethylene”. The shipment, originated from Cape Town, reached Durban harbour. Upon inspection by port authorities, the shipment was found to contain scrap metal. As per law, scrap metal shipments outside of the country requires explicit permit and are liable for export duties.

Following this, a criminal case was registered against the company for violation of the Customs and Excise Act and the ITAC Act.

Edward Kieswetter, Commissioner, SARS urged traders to comply with their legal obligation and said that the incident should be a warning for all non-compliant traders who cause significant loss to the country’s economy.