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New tariff codes of aluminium scrap not yet fully implemented
Nov 23,2020 14:30CST
Source:SMM
Starting from November 1, imported recycled cast aluminium alloy raw materials that comply with the Recycled Cast Aluminium Alloy Raw Materials (GB /T 38472-2019) can be imported freely without approval and port restrictions, according to the Announcement on Regulating the Import Management of Recycled Brass Raw Materials, Recycled Copper Raw Materials and Recycled Cast Aluminium Alloy Raw Materials.

SHANGHAI, Nov 23 (SMM) — Starting from November 1, imported recycled cast aluminium alloy raw materials that comply with the Recycled Cast Aluminium Alloy Raw Materials (GB /T 38472-2019) can be imported freely without approval and port restrictions, according to the Announcement on Regulating the Import Management of Recycled Brass Raw Materials, Recycled Copper Raw Materials and Recycled Cast Aluminium Alloy Raw Materials. However, SMM’s survey has found that most customs ports have not yet recognised the new tariff code (7602000020) and are still implementing the previous tariff code.

Some freight forwarding companies have released relevant tariff rates of products under the new tariff code (7602000020), whose most-favoured-nation (MFN) import tariff rate is 1.5%. There are indeed a certain amount of imported aluminium alloy ingots and aluminium scrap that have entered China at the MFN rate of 1.5%, but the amount is limited and only a few ports allowed imports. Ningbo port has imported Indian secondary aluminium ingots under the new tariff code (the tariff rates under the previous and new tariff codes are 4.6% and 1.5% respectively). Sanshan port and Zhaoqing port in Guangdong imported scrap aluminium. However, market opinions are divided on the issue of tariff rates. Some are concerned that companies who imported at the tariff rate of 1.5% will need to pay additional tax in the future while others believe that the 1.5% tariff rate will be fully refunded.

Other ports refused to recognize the new tariff code 7602000020 on the grounds that the General Administration of Customs did not issue tariff rates of the new tariff code, and continue to implement the previous tariff codes for aluminium scrap and secondary aluminium.

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