China’s Ministry of Finance has decided to drop the 2pc tariff on ferrous scrap imports and renew its most favored nation (MFN) policy, beginning January 1, 2021.
In a notice published on Dec 23, the Ministry indicated that while it will discontinue the 2pc duty, it may “appropriately adjust” the temporary import tax for 2020 in line with the domestic industry as well as supply and demand factors. The Ministry is also considering waiving duties on imports of non-alloyed nickel, according to the notice. The new policy will abolish the import quotas and restrictions on imports of “solid wastes” including metal scrap into China.
By implementing the MFN policy, China will, in essence, set up a trade agreement for concessions and lower duties with certain countries. As Davis Index understands, Russia and Japan will be part of the new MFN list.