Japan Traders to Watch China Custom Process for Banned Mix Metal Scrap

Chinese government prohibits basically mixed scrap import for metals including nonferrous metals and steel in June. Each custom service offices tried to check severe the scrap screening and screening standard but the central government’s severer regulation could result in severe control. Some Japanese scrap exporters stop the export to China in early June and the regulation could impact on Japanese domestic transactions.

Japanese exporters ship many types of metal scrap including steel, copper, stainless, aluminium, electric wire and motor. They ship high grade nonferrous scrap and electric wire scrap in container and steel and mixed metals in bulk cargo.

Chinese scrap import kept increasing under rapid economy growth. But the illegal import also increased. Especially, container import is used for tax evasion. Chinese custom offices tried to check the illegal import by prohibiting mixed scrap import for high grade scrap or forcing the traders to separate each metal in container. The central government’s attempt encourages custom offices to check the illegal import.

Scrap traders can import mixed metals scrap in balk cargo if they get approval in advance. However, the traders should separate the metals in bonded areas to declare the import tariff. Japanese trader source said the additional process is impossible in major ports and the actual operation is uncertain. Some Japanese traders hold the shipment in early June to watch the operation.