The China Ministry of Ecology and Environment has announced that starting from January 1, 2021, it officially allows imports of scrap as a recycled steel raw material. Scrap under HS codes 7204100010, 7204210010, 7204290010, 7204410010 and 7204490030 is classified as recycled steel raw material and can be free of the ban. For now only these HS codes were announced as allowed for imports. No further details have been announced officially yet regarding the additional grades and impurities, like in the detailed explanation document issued by Metallurgical Information and Standardization Institute earlier this month.

Starting from January 1, the new MFN duty rate will be zero for the items under customs tariff numbers 72042100, 72042900, 72044900 – stainless steel scrap, shredded scrap of other alloy steel and other shredded steel scrap. The MFN duty rate will be two percent for the items under 72041000 and 72044100, which are cast iron shredded scrap and scrap from machining.

The national standards called “Recycled Iron and Steel Raw Materials” were proposed by the China Iron and Steel Association and the Metallurgical Industry and Standardization Institute, while China Scrap Association was responsible for issuing the drafting.