
The Washington-based Institute of Scrap Recycling Industries (ISRI) has notified its members that the Office of the United States Trade Representative (USTR) has decided to exclude parts used in automobile shredders from a 25 percent tariff on items imported from China.
Often referred to as “wear parts” because of their need to be frequently replaced, the components are vital to scrap recyclers in the U.S., says ISRI.
“USTR’s decision to exclude wear parts is not only a major relief for America’s recycling industry, but also good news to the nation’s steel and aluminum producers that rely heavily on scrap materials for the manufacture of new products,” says Robin Wiener, president of ISRI. “Using scrap materials saves manufacturers money and reduces energy costs, which is a win-win for recyclers and the nation.”
The USTR 25 percent tariff waiver will apply for one year, and auto shredder operators who import directly from China can apply for the full refund of all duties paid since the tariffs were implemented on July 6, 2018, according to ISRI.
“While the waiver is in place for just one year, the retroactive application of the policy will help the industry save tens of millions of dollars in tariffs,” Wiener comments. “We remain hopeful that the negotiations between the U.S. and China will yield additional tariff relieve on scrap materials traded between the two countries.”
Automobile shredders in the U.S., which on average process combined 365,000 metric tons of material per day, source as much as 85 percent of their wear parts from China. While there is one domestic supplier, the operation is too small to meet the needs of more than 300 auto shredder machines in the U.S., says ISRI.
Wear parts from other markets, including Germany, Canada, India and Mexico, raise issues of higher prices, capacity constraints, quality concerns and transportation costs, adds the association.
The text of the USTR notice on the topic can be found on this web page.
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