Page 53 - Plastics News September 2018

FEATURES

Chinese tariffs on U.S. scrap plastics take effect

DeAnne Toto

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applied to recovered plastics and a number of other U.S. recyclables. The 25 percent tariff now applies to
recovered PET, PE, PVC, PS and other plastics.

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Tongoing trade war, and this time tariffs have been imports from other countries, it is our understanding
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On August. 23, each country began imposing new rounds demand. This is in line with other reports that the trade
of penalties on $16 billion worth of each other’s goods. war has had an impact on the Chinese economy across
Among the hundreds of categories of products, this latest many sectors.
round included China’s 25 percent tariff on OCC, recovered ´,65, UHJUHWV WKDW WKH WUDGH GLVSXWH EHWZHHQ WKH
paper, scrap plastics and various recovered metals. 8QLWHG 6WDWHV DQG &KLQD FRQWLQXHV WR HVFDODWH ZLWKRXW
any indication that the two governments will
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these tariffs will impair the already diminishing
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are China’s unfair trade practices related to
the forced transfer of American technology and
intellectual property. This is the second round
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nearly $34 billion in Chinese goods under Section
301 of the Trade Act of 1974, went into effect July
6. The list of Chinese goods to be taxed as of Aug.
The Institute of Scrap Recycling Industries (ISRI), IURP WKH 8675·V RIÀFH FRQWDLQV RI WKH RULJLQDO
:DVKLQJWRQ VD\V WKH 8 6 H[SRUWHG D WRWDO RI ELOOLRQ tariff lines that were on a proposed list announced June
worth of scrap commodities to China in 2017. Through the &KDQJHV WR WKH SURSRVHG OLVW ZHUH PDGH DIWHU 8675
ÀUVW VL[ PRQWKV RI WKH WRWDO RI 8 6 VFUDS H[SRUWV WR and the interagency Section 301 Committee sought and
China was $2.2 billion, a decrease of 24 percent from the received written comments and testimony during a two-
same time frame last year, the association adds. According day public hearing last month.
to ISRI, the tariff codes affected by China’s retaliatory ,Q 0DUFK 8675 UHOHDVHG WKH ILQGLQJV RI LWV
measures are: 3915 Plastics; 4707 Paper; 7204 Ferrous; Section 301 investigation that found China’s acts,
7404 Copper; 7503 Nickel; 7602 Aluminum; 7802 Lead; policies and practices related to technology transfer,
7902 Zinc; 8002 Tin; and 8104 Other base metals. intellectual property and innovation are unreasonable and
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announcement has caused consternation among Chinese the investigation, China uses joint venture requirements,
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says in a statement regarding China’s most recent round and licensing processes to require or pressure technology

53 September 2018 Plastics News