Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The Institute of Scrap Recycling Industries (ISRI) has supported the exclusion of shredder wear parts from section 301 tariffs in its recently submitted comments to the Office of the U.S. Trade Representative (USTR).


ISRI has explained why the exclusion on shredder wear parts should be reinstated and how the tariff has caused economic harm to U.S. small businesses, employment, manufacturing output, and critical supply chains, all of which are directly impacted by the work of recyclers, specifically shredders.


The institute also notes that wear parts keep shredders operating through the day but need to be replaced almost daily. Thus having them in bulk quantities is imperative for U.S. recyclers.


Specifically, here is ISRI’s position on the exclusion:


 ISRI is commenting in support of reinstating the exclusion from the section 301 tariff on HTS subheading 8479.90.94.96.  These comments are submitted on behalf of 217 of the auto shredders operating throughout the United States whose business operations shred end-of-life vehicles and other metal for purposes of recycling these metals to create commodity-grade raw materials. 


The 25pc import tariff on auto shredder wear parts severely impairs this essential manufacturing supply chain and the businesses involved in the process, placing the opportunity to deliver essential materials for infrastructure in great jeopardy.


… Reinstating the section 301 tariff exclusion on shredder wear parts will have substantial and broad-reaching positive impacts on the industry and its ability to aid in carrying out President Biden’s infrastructure plans in an environmentally responsible manner. The recycling industry is critical to the Circular Economy, connecting the ends of the manufacturing supply chain by taking products at the end of their original life and processing them into a usable commodity that can be manufactured into something new.  


From our cars, and roadways, to our bridges, train stations, airports, and more, America’s transportation system relies on the work of the recycling industry, which decreases our reliance on virgin materials and protects our limited natural resources. This offers real sustainable solutions for balancing economic growth and environmental stewardship.


… In the end, auto shredders in the United States must source at least 85pc of their parts from China, and demand for material is only going to increase in the coming years in response to the United States’ efforts to improve our infrastructure in the coming decade.


Click here to read the full text of ISRI’s comments to USTR.

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