China to Introduce Fresh Batch of Scrap Import Permits

BEIJING (Scrap Monster): The Market Update Report released by the China Scrap Plastic Association (CSPA) states that the country is all set to release a new batch of scrap import permits. The 12^th batch of scrap import permits is likely to be released during mid-August this year and will be closely followed by release of 13^th batch. This is based on information obtained from various government departments, noted CSPA.

According to Dr. Steve Wong, Executive President, CSPA, an official announcement on the recently filed import ban with the World Trade Organization (WTO) is expected soon. As per the filing, Chinese ports will accept shipments with bill of lading dated prior to Sep 1^st only until the end of this year.

Only those facilities certified as licensed during the July inspections will be eligible to use the existing import licenses. However, the facilities that were imposed penalties during the inspection are required to apply for new import permits. For that, the facility needs to ensure that it has not imported prohibited waste and recyclables during the past two years. Also, facilities that are found to import secondary raw materials without permission during last two years could not claim a new license. Those facilities identified for submitting license application with false information, obtained license through deceptive means or for transfer of import permits are also ineligible to apply for new import license.

The companies will have to testify that the operations have conformed to environment rules during the past one year, in order to apply for new import license. The companies that have recorded emission of pollutants exceeding permissible levels and have not carried out treatment of harmful waste or failed to maintain environmental monitoring records for the past one year period also are not allowed to apply for license. Further, any instance of violation of environment protection rules will also make them ineligible for the application process.

According to CSPA, the Chinese administration is yet to make its stance clear on whether licensed importers not penalized during the July inspection need to apply for new licenses. A clarification on this matter is expected immediately after the release of 12^th batch of scrap import licenses, CSPA noted. The list of scrap plastic categories that will be allowed to be imported into the country is also under review and revision by authorities and will be announced before the end of this month, said Wong.

In a filing with the WTO, China had proposed to stop imports of a number of foreign recycled materials including certain types of glass, metals, plastics, paper and textiles.