MITI Formulates Tougher Rules to Restrict Imports of Scrap Metal

This will likely impact imports of certain items such as baled wire and cables.

SEATTLE (Scrap Monster): Malaysia is reportedly gearing up for rampant changes in scrap metal import rules.

According to SIRIM QAS International Sdn. Bhd., which is wholly owned by Malaysia’s Ministry of Finance, the country’s Ministry of International Trade and Industry (MITI) plans to make pre-shipment inspection process mandatory for all scrap metal shipments. Furthermore, scrap in crushed form will not be allowed for import.

Also, all inspected and approved nonferrous shipments are required to meet 94.75% metallic content threshold. This will likely impact imports of certain items such as baled wire and cables.

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SIRIM indicated that ferrous as well as nonferrous shipments will not be allowed to enter the country through any of the nation’s land borders with Thailand, Indonesia, Brunei or Singapore. Instead, they will have to arrive by sea. The cargoes through sea will need to have a Certificate of Approval (CoA), following pre-inspection by SIRIM or any accredited inspection agency. Non-compliant shipments will be returned to the country of origin.

Furthermore, the CoA requires a bank guarantee to be purchased by local Malaysian companies that have an approved MITI manufacturing license. The funds from the bank guarantee will be used to cover transportation and incidental costs in connection with return of shipments.