File Picture: Francois Lenoir Reuters
File Picture: Francois Lenoir Reuters

Durban court slaps businessman with R600 000 fine after he tried to export 10 containers of scrap metal worth R1.1 million

By Lee Lawler Time of article published Oct 13, 2021

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DURBAN: A Gauteng scrap metal dealer, who tried to export 10 containers of scrap metal out of South Africa, has been given a hefty R600 000 fine by the Durban Magistrate’s Court.

Last week, the Durban Magistrate’s Court sentenced Boksburg businessman Gautam Lal to to five years imprisonment, wholly suspended for a period of five years.

It came with conditions, after he pleaded guilty to two counts of Exporting steel scrap metal without obtaining an export permit (Contravention of the International Trade Administration Act) and two counts of making a False declaration (Contravention of the Customs and Excise Act).

It was the first time a KwaZulu-Natal court convicted a person in their personal capacity, instead of their company, on such charges.

National Prosecuting Authority spokesperson Natasha Kara said the offences took place in February and March 2020.

Lal, who is a businessman from Boksburg, specialised in the buying and selling of scrap metal.

Legislation requires that no goods of a specific class or kind may be exported from South Africa, except under the authority of, and in accordance with, the conditions stated in a permit issued by the International Trade Administration Commission (ITAC).

The NPA said that, in February 2020, Lal attempted to export 10 containers of scrap metal, valued at about R1.1 million.

In March 2020, he attempted to export eight containers of scrap metal valued at about R922 000. This was done without having a permit from the ITAC.

“He planned on exporting the commodities to the Port of Mundra, in India. Further, he made false declarations by attaching false/incorrect tariff codes to the items due for export. He was arrested following an inspection by the SARS Customs Investigation Unit,” Kara said.

In giving Lal the five years wholly suspended sentence, the court imposed the following conditions:

- He must not be convicted of any offence involving a contravention of the International Trade Administration Act, which is committed during the period of suspension.

- He pays a fine of R600 000 at the clerk of the Durban Magistrate’s Court over the next 20 months.

- An instalment of R30 000 has to be paid at the end of each month, with the first instalment due at the end of October 2021.

Lal also paid an amount of about R266 000 to SARS for penalties imposed.

The matter was finalised by the Regional Court control Prosecutor Vaneshree Moodley.

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