Restrictions to Spur Fresh Investments in U.S. Recycling Industry

SEATTLE (Scrap Monster): The Chinese Ministry of Commerce (MOFCOM) has responded to concerns raised by several WTO member nations and industry stakeholders on the recent import restrictions imposed by the Chinese Customs authorities. According to sources, the Chinese comments directly address the ‘waste versus scrap’ debate.

According to the response letter, the restrictions imposed on imports are likely to spur U.S. economic development, thus proving beneficial to the U.S recycling industry. The import limitations will result in increased volumes being kept within the US, which in turn may spur fresh investments in processing industries. Additionally, this could bring in more employment opportunities to the U.S recycling industry, noted Chinese officials.

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The Chinese regulators refuted the charges that China is not fully aware of the difference between waste and scrap. According to them, the Chinese administration had followed the internationally recognized HS code system to list out the materials to be restricted from imports. Further, it noted that there exists no global standard for scrap materials and recyclable materials. Also, the letter notes that China is well aware of the difference between solid waste and raw materials.

Referring to the testimony of ISRI with respect to highly efficient infrastructure and processing technologies with in the U.S, China noted that the ISRI statement confirms that the U.S. has the ability to manage its recyclables domestically. By doing so, the U.S. would be able to comply with China’s ‘disposal to the nearest’ principle, thereby eliminating the need for countries to export recyclables to overseas destinations by recycling them domestically.

Finally, the letter reiterates Chinese view that the 0.5% contamination limit is realistic. It highlighted that the limit was deferred until March 1, following concerns raised by various stakeholders. The exporters must ensure that the wastes are properly categorized or pretreated at their sources, it said.