China and Hong Kong Strengthen Inspection on Scrap Imports

Authorities of China and Hong Kong are strengthening inspection of imported metal scrap. The authorities are introducing all container inspection on departing and arriving metal scrap to prevent illegal imports. Japanese scrap exporters should reinforce quality control on the export for China and Hong Kong, the largest importers of Japanese metal scrap, to meet severer demand.

Most of the illegal exports are hiding tax-dodging scrap inside cheap scrap or exporting prohibited items. Chinese authority has offered Japan China Commodities Inspection Company (JCIC), the company headed in Tokyo to inspect scrap shipped for China, to strengthen control on departing containers. The authority seems to have announced same offers to other country’s inspectors. JCIC started all container inspection in May.

The authority in Hong Kong is also starting all container inspection for cargos arriving at Hong Kong. Japanese scrap exporter said there have been more illegal imports in Hong Kong than in China due to no obligation for inspection before shipment or exporting license. In addition, inspection for arriving cargos has been easier than that of China.

JCIC’s director said Chinese authority would strengthen quality and tax control on imported scrap. For example, the director indicated, the authority may obligate container separation in the case one container includes several different scrap items. By the separation, the authority would stiffen weight and grade check for severer tax collection.