China is expected to postpone the launch of its regulations to restrain scrap steel imports to this fall. The General Administration of Quality Supervision, Inspection and Quarantine originally had earmarked July 1 for when the registrations needed to be completed.
According to the regulations, all scrap exporters will have to apply to GAQSIQ for qualification before exporting any scrap metal into China.
"We have already published provisions for application and registration procedures for scrap importers which are scheduled to take effect on July 1. These regulations were promulgated to protect the environment in China and will be applied to all scrap materials, including scrap steel, coming from foreign countries," said an official from the customs affair department in GAQSIQ.
Under the provisions, all overseas scrap suppliers will have to apply to GAQSIQ for registration if they plan to export scrap materials to China. The provisions also say that an approved supplier must be a legal company in its own country with offices or factories, understand Chinese environmental protection regulations and other related laws, own basic equipment for quarantine, have already been approved by a local environment department in its own country, have stable scrap supply with safe environment control systems and have had no problems caused by lack of environmental protection, or hygiene quality in the last three years.
Successful applicants will have to undergo an inspection, which should take place within three months of their application being approved, before being issued a temporary certificate with a validity of two years.
Several resources have reported that suppliers from Europe are worried these regulations will have a negative impact on China's increasing need for scrap steel, as the period of delay before GAQSIQ approves and releases certificates may mean suppliers have to stop exporting scrap steel to China.
While the September deadline has given scrap recyclers some breathing room, in a letter to members, Francis Veys, executive director for the BIR said that any decision to extend the deadline would still have to be officially ratified by the head of the AQSIA. Also, Veys notes, “It is understood but still needs to be confirmed that this deadline applies to the moment ‘when the company registration procedure has to be finalized and not for sending the application.
An official from the customs affair department in GAQSIQ today confirmed these discussions and said, "We considered suppliers' concerns over exporting scrap, so we will suspend the date accordingly, perhaps until September 1 2004. Our
final decision will be released within a few days," he explained.
Additionally, the applications must be made in both English and Chinese, and requires 17 different documents, including the application form.
Some local customs authorities have already forbidden importing scrap metals. According to a report from China Economy Information, Huizhou port, based in South-China's Guangdong province, decided to forbid fixed metal scrap being imported as of the end of June. Interfax