China customs rules to have no effect on scrap imports

Many Chinese buyers of imported ferrous scrap today said newly announced customs rules that ease inspection requirements will have no significant impact on ferrous scrap imports, as they do not cover the grades that Chinese buyers are permitted to import.

China will halt import inspections on 234 products, including some common ferrous scrap HS codes, but HS codes for scrap that meet the China's new scrap import standards are not included.

Ferrous scrap that does not meet the new import standards is classified as solid waste and therefore not permitted for import.

Under the new rules, imported recycled raw material including ferrous and copper scrap will have to follow the customs supervision category A standard, which means they will be required to pass inspection by China's customs authority and obtain any relevant documents before being cleared by customs.

Exports of billet and pig iron have been added to customs supervision category B. This category follows a similar procedure to category A. And imports of 234 products — such as electronics, metal products and chemicals — will no longer require import inspection, China's General Administration of Customs said today.

The new customs requirement for imports and exports will come into effect from 10 June.

China enabled imports of ferrous scrap as recycled raw material under five HS codes — 7204100010, 7204210010, 7204290010, 7204410010 and 7204490030 — from 1 January. Most HS scrap imported from Japan falls under HS code 7204490030.

By Terry Chuay and Ji Xia