The Scrap Recycling Industry Association (ISRI), a Washington-based association representing the recycling industry, has warned members that Section 301 tariff exemptions, including the exemption for wear parts in auto shredders, will expire at the end of the year. . The US Trade Representative (USTR) is unlikely to extend the exemption as part of a larger China trade policy, according to ISRI. According to ISRI, additional tariffs of 25% will start from January 1, 2023.
In 2018, the USTR found that China’s conduct, policies, and practices related to technology transfer, intellectual property, and innovation were unreasonable or discriminatory, pursuant to an investigation under Section 301 (Title III of the Trade Act of 1974). Yes, burdensome, or restricted U.S. commerce. As such, the Trump administration has used Section 301 to impose four additional tariffs on about two-thirds of US imports from China. However, the USTR has a policy that allows interested parties to claim “tariff exemptions” for U.S. imports that would otherwise be subject to tariffs if tariffs harm U.S. businesses. has been introduced.
In 2018, ISRI petitioned the USTR to grant an exemption for wear parts in automatic shredders, but a letter ISRI received from the U.S. government stated that “this particular product is only available from China. The association’s request was denied because it could not be shown. .
ISRI continues its argument, stating that the USTR granted the waiver on April 18, 2019.
In October 2021, when the USTR asked for public comment on whether to reinstate the previously extended exemption that included shredder wear parts, ISRI explained why the exemption for shredder wear parts should be reinstated and what the tariffs should be. provided comments describing how it caused economic damage to the United States. Small businesses, employment, manufacturing output and supply chains.
On March 23, 2022, the USTR reinstated previously granted and extended certain product exemptions in China Section 301 investigations backdated to October 21, 2021 and extended to December 31, 2022. announced the decision to The United States does not produce enough parts for the hundreds of U.S. shredders used to process automobiles and other ferrous and non-ferrous materials, exempting shredder wear parts. Supporting comments have also been submitted, and the USTR has granted waivers of these items.
ISRI said it plans to petition the USTR to request an extension of the exemption, raising concerns with the Capitol. However, the association has told members it understands that the USTR is “not likely to consider waivers before the end of the year.”
Further, ISRI said it will submit comments in response to the USTR’s four-year review of Section 301 exemptions by January 17, 2023, re-emphasizing the importance of the tariff exemption for shredder wear parts.
By the end of the year, there will be one less company manufacturing such parts in the United States.
Portland, Oregon-based Columbia Steel Castings, Inc., an American manufacturer of a variety of steel parts for basic industries, including wear parts for metal and waste shredders, announced plans to close in late August. did. The company is facing challenges to offshore competition, which is often subsidized by governments, supply chain disruptions, COVID-related restrictions on sales travel, state and local environmental regulations and increased fees to energy-intensive industries, and increased production costs. states the impact of not being able to hire and retain enough employees to Casting at a sustainable level, even after significant wage increases, contributed to the decision to close the 121-year-old company.
