Tariff exemptions to have little impact on China’s aluminium scrap imports

SHANGHAI, Feb 20 (SMM) – China’s imports of aluminium scrap are to be hardly impacted by the exemption of a 25% tariff on US products, either in terms of volumes of imports or modes of trades.

Starting from March 2, Chinese aluminium scrap importers can apply for one-year exemptions to tariffs of 25% on US materials imposed in the protracted trade war with Washington, according to the statement from the Customs Tariff Commission of the State Council.

US aluminium scrap will still be subject to a tariff of 25% before entering China, even if the application for the tariff exemption is approved. Chinese importers are set to continue to import US aluminium scrap via processing trade to avoid the tariff.

The tariff exemption is unlikely to affect the volume of China’s aluminium scrap imports, either, as scrap metal imports are restricted by the import quota system.