China removes import tax for ferrous scrap

Market: Metals
23/12/20

China will cut its ferrous scrap import tax to zero for 2021, effectively ending its import ban on ferrous scrap, and reinstate a most favoured nation (MFN) duty system for scrap imports, it said today.

Steel scrap under HS codes 72041000, stainless scrap under HS code 72042100 and alloy steel scrap under HS code 72042900 will face no import tax from 1 January. The MFN duty for steel scrap is set at 2pc while MFN duties for stainless and alloy steel scrap are zero.

China will also implement new ferrous scrap import standards from 1 January that set out physical specifications for six groups of metal. Beijing has not yet announced other details on the implementation of the new standards, but its removal of import taxes may mean that the release of further information is imminent.

By Chi Hin Ling

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