China announces additional RCP import tariffs

According to information from the Institute of Scrap Recycling Industries (ISRI), from December 15, 2019, China will add a 5% import tax on some HS codes of recovered paper, bringing the total import tax rate of recovered paper from the US to China to 30%.

HS Code	Description according to ISRI standards
4707.10.00 ...	Recycled type paper or cardboard (scrap and scrap): Kraft paper or kraft board or corrugated paper or paperboard, unbleached.   (including odd codes: 4, 5, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21; and special codes: 8-S and 11-S).
4707.30.10 ...	Recycled paper or paperboard (scrap and scrap): Paper or paperboard made primarily of pulp obtained from mechanical processes (e.g., newsprint, magazines, and similar publications)   (including odd codes: 9, 10, 22, 23, 24, 25, 26, 27, 44, 56, 58; and special codes: 25-S, 32-S, 33-S, 36-S).
4707.90.00 ...	Recycled paper or cardboard (scrap and scrap): Other, including scrap and scrap that have not been sorted.   (including odd codes: 52, 54; and special types from codes 1-S to 7-S, 10-S, 12-S, 14-S and codes 20-S, 22-S, 31-S, 34-S).

Currently, unclassified mixed paper (code 4707.90.00) is prohibited from being imported into China, but according to the regulations of the HS system, it is still included in the list of additional taxes.

The United States is reacting negatively to this announcement. However, with the implementation milestone from December 15, 2019, there may be changes from now until then if a new agreement on trade and tariffs is reached between the US and China.

FastMarkets RISI/8.2019