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Scrap Imports to China Dramatically Lower

Starting March 1, China began implementing the GB import standards that require scrap imports meet the strict “carried waste” thresholds of 0.5 percent for most scrap commodities (1 percent for nonferrous metals, not including wires and motors).

The Chinese Government has not clearly defined “carried waste,” and therefore reports are coming in that shipments of a mix of recyclables are being rejected. We believe there is and will continue to be for the foreseeable future inconsistencies at Chinese ports on the interpretations of the rules. It is also believed that the Government will only allow “pure” shipments, i.e. 100 percent of one type of scrap that is uniform in content. For example, the Ningbo Customs Inspection service sent a letter to CCIC North America about the rejection of a shipment of ONP that had contained 10 percent OCC. It would appear that the authorities considered this a shipment of mixed paper, which is banned. 

Additionally, the Chinese Government continues to issue import permits to Chinese companies for annual quotas that are much as 95-97 percent smaller than last year. There are fewer companies being issued permits, and importers are being given a year’s quota that would normally be for just one quarter.

Companies preparing shipments for export to China are reminded to ensure there is as little waste as possible in your shipments, take extra photos and be as clear as possible in your documentation. Also, ensure you know who your customer is and whether or not your customer has an import permit with available quota. 

Paper Beat

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