Malaysia applies new scrap import regulations

Posted on 11 January 2022

Malaysia's new scrap import policy came into force on Monday. It puts forward new requirements on importers and scrap content, according to the Ministry of International Trade and Industry (Miti).

The only importers qualified to apply for metal scrap imports are manufacturers with a Manufacturing Licence (ML) approved by Miti, or those who have gained a Confirmation Letter (ICA 10), Kallanish notes. Third-party importers or trading arms which plan to import scrap to Malaysia need to provide invoices and a Memorandum of Agreement (MoA) from ML or ICA 10 companies. The new rules apply to product under HS code heading 7204 for ferrous scrap.

Government departments should ensure the applied-for imported metal scrap volume is based on the quota of raw material required and does not exceed the maximum annual production capacity of the ML holder or ICA 10 manufacturer, the document stipulates.

The rules also mean that ferrous scrap imports must be at least 94.75% pure ferrous metal, plus up to 5% non-ferrous metal and 0.25% plastic. The expected total shipment weight of metal scrap (solid ferrous & solid nonferrous) will be up to 99.75%, and crushed or shredded metal scrap of sizes less than 5mm is not allowed. These quality limits were already in force under temporary measures imposed since November.

Source : Kallanish