New Chinese Policy to Remove Tariffs on Recovered Fiber Imports

SEATTLE (Scrap Monster): The Chinese government announced that it will consider tariff exemption for OCC and other recovered fiber imports.

The Chinese Ministry of Finance announced a new process that allows for tariff exemptions for certain categories of products. The applicants should use the online exclusion declaration system to complete and submit a market-based procurement exclusion application. The applicants needs to mention the purchase plan amount and details on the impact of tariffs. The decision will be taken on company-to-company basis.

ALSO READ: Tariffs on Recovered Fiber Imports Continue Despite U.S.-China Trade Deal

The new policy by the Chinese administration states that all grades of recovered fiber are eligible for exemption from tariffs. The Chinese importers of the above said material could now apply for exemptions.

Last month, China had lifted the 20% tariffs on imports of pulp made from recycled fiber. Also the Customs Tariff Commission of China's State Council had lifted the tariff on U.S. recycled paper pulp shipments for a period of one year, effective from Feb 28 to Feb 27, 2021. Further to the ban, some U.S. companies had started shipping finished pulp to China, after domestic processing of recycled fiber.

The latest move is considered part of Chinese efforts to further cool off trade tensions with the U.S.