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November 1, 2018

ISRI’s Section 301 Tariff Exclusion Request for Wear Parts Denied

At the ISRI Fall Board meeting, there was much discussion about the dual impact of U.S. and Chinese trade policy on the recycling industry.

The Section 232 and Section 301 tariffs imposed by both countries are compounding the effects already being felt from China’s import restrictions. Among those tariffs are a 25% tariff rate being assessed by the U.S. Government on auto shredder wear parts from China. Thanks to a strong participation by ISRI members to our survey of wear parts procurement in preparation for the request that these products be excluded from the tariff, we know that the industry sources about 85% of wear parts from China. Furthermore, the Steel Manufacturers Association (SMA) filed comments that expressed support for ISRI’s exclusion request.

Unfortunately, we learned immediately after the Board meeting that the U.S. Government denied our tariff exclusion request. In the official letter, the Administration claims that we “failed to show that this particular product is available only from China.” Our interpretation is that the Administration may only support these requests if 100% of a product is sourced from China. ISRI is disappointed by this outcome and will continue to press the Administration to resume talks with China to resolve their trade differences. We know that some wear parts importers have filed their own requests, and are aware that a couple were also denied. If any company is successful in their bid, it is our understanding that the entire industry will benefit. But we do not believe that anyone sources all parts from China.

If you have any questions, please contact Adina Renee Adler.
 

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Have Questions?

Billy Johnson
Chief Lobbyist
BJohnson@isri.org
(202) 662-8548
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