China Recycling Market Update Part 2 (11/14/2017)

China Recycling Market Update Part 2 (11/14/2017)

Albeit that plastic scraps import is scheduled to be stopped completely by end of 2018, I understand that China would not close the door entirely as “reasonableness” is the spirit of the rules. It is perceived that there is a possible leeway of certain forms of plastic scraps such as washed flakes allowed for import in 2018, if it can be justified by a “recognized standard” as feedstock for finished goods production without prior processing.

With the occasion of the CSPA Conference on 08 Nov 2017, I had the chance to discuss with the Director of General Administration of Customs before start of the meeting on the policy issue and to explore avenues of importing some forms of plastic scraps into China in 2018 such as washed flakes. While he is supportive, he sees that it is reasonable for the General Administration of Customs to consider based on a set of recognized standards. A standard recognizing that the washed flakes can be classified as industrial or secondary materials as it can be used directly as feedstock for production of finished goods without prior processing. In other words, to justify that raw materials for finished goods production need not necessarily be in the form of pellets. It is desirable that once the plastic scrap can meet such standards, it can be classified as industrial nature regardless of the origin of it and be categorized with a unique HS code tantamount to pellet and be allowed for importing.

While revision of the import permit application criteria is underway, it is expected by the industry that strict requirements aiming at reduction of quantity and control of import permit user and usage including compliance of pollutant emission controls would be the scope of consideration.

By Dr. Steve Wong

Executive President, CSPA
Chairman, Fukutomi Company Limited
Committee Member, Plastics Committee of BIR
Committee Member, WEEE Committee of BIR

14 November 2017

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