China will reduce the tax on imports of ferrous scrap to zero by 2021, which will effectively lift the ban on imports of ferrous scrap and restore the most favored nation (MFN) duty system for scrap imports, the report said.
Steel scrap HS 72041000, stainless steel scrap HS 72042100 and alloy steel scrap HS 72042900 will not be subject to import tax from January 1st. The MFN duty for steel scrap is set at 2%, while the MFN duty for stainless and alloy steel scrap is zero.
From January 1, China will also introduce new standards for the import of ferrous scrap, which set physical characteristics for six groups of metals. Beijing has yet to announce other details about the new standards, but its removal of import taxes could mean more information is inevitable.