China's Changing Import Regulations- What Does It All Mean? - Brought to you by: 1 Waste360
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China’s Changing Import
Regulations—
What Does It All Mean?
Brought to you by:
1 Waste360
There’s a new normal in the world of filmed live at WasteExpo 2018
recycling. Once the largest importer featuring the following speakers:
of post-consumer recyclables, China Dylan DeThomas, vice president of
decided it didn’t want “foreign industry collaboration, The Recycling
garbage” inundating its country Partnership; Mark Reiter, assistant vice
anymore. president and chief lobbyist, Institute
Other resources of So, it instituted a waste import ban of Scrap Recycling Industries (ISRI);
interest: on 24 kinds of solid wastes in January and Susan Robinson, director of public
2018; a new contamination standard of affairs, Waste Management. We’re all in
The China Conundrum 0.5 percent went into effect in March— this together.
and even more restrictions may be
ISRI, NWRA, SWANA coming down the pike. Needless to say, What caused this sudden
Respond to China’s Finalized it’s a tough time for the U.S. recycling change to China’s waste import
Contamination Standard industry as it scrambles to find both regulations?
short-term and long-term solutions. In 2017, China notified the World
China’s Import Regulations - As a stakeholder, what do you need Trade Organization (WTO) of its
What You Need to Know to know about this new and evolving intent to forbid 24 kinds of solid
situation? Below, we’ve rounded up wastes by the end of the year and to
articles and other resources to help lower contamination thresholds. The
answer your most pressing questions. rationale was to stop “foreign garbage”
In addition to providing key from inundating China, and the moves
points from the linked articles, were characterized as environmentally
we’ve also interspersed takeaways driven.
from “China’s Import Regulations - Though the moves seemed sudden,
What you need to know,” a session DeThomas reminds us that trouble
with the Chinese market has been
brewing for some time.
It was around the turn of the
21st century when China started
consuming recyclables in significant
volumes from the U.S.—and it
wanted these materials, even paying a
premium. Slowly, however, materials
recovery facilities (MRFs) started
sending lower quality scrap and trash
due to a lack of regulations.
As Chinese consumers were
continuing to purchase these “dirty”
materials, a media scandal erupted
after photos were circulated of
2 Waste360
disgusting-looking paper bales In response to the 2017
coming from Europe. In response, the announcement that China would
government pushed back and passed soon institute a ban and lower
a solid waste law in 2008, which led to contamination thresholds, three major
“Green Fence” (a customs enforcement waste and recycling associations—the
‘‘
protocol that took place during 2013), Solid Waste Association of North
a 2016 effectively resetting the quality level of America (SWANA), the Institute of
documentary called what China would accept. Scrap Recycling Industries (ISRI),
“PLASTIC CHINA” More recently, a 2016 documentary and the National Waste & Recycling
called “PLASTIC CHINA” garnered Association (NWRA)—submitted
garnered much much attention and caused deep multiple filings and feedback
attention and caused embarrassment to the Chinese regarding those intentions. They
deep embarrassment government yet again. The film urged modifications and delays, but
depicted the lives of two families who the Chinese pushed forward. The
to the Chinese make a living recycling imported associations expressed their responses
government yet plastic waste. Ultimately, this film as below:
’’
again. may have been the straw that broke “SWANA is disappointed the
the proverbial camel’s back—leading Chinese government did not modify
China President Xi Jinping to push its waste import restrictions in
for the current ban and emphasizing response to the serious concerns raised
phrases like “Chinese dream” and by North American, European and
“beautiful China” along with a desire Asian governmental authorities and
for environmental improvement. associations. We support the efforts to
DeThomas says that this “still is a improve the environment in China,
political issue just as it was in 2013.” but these extraordinary restrictions are
already adversely impacting recycling
programs throughout North America.”
—David Biderman, executive director
and CEO of SWANA.
“ISRI is very disappointed to see
the Chinese government finalizing
its Environmental Protection
Control Standards … We continue
to be supportive of the Chinese
government’s drive to improve
the environment in China, but we
continue to hope that such support
can be realized through collaboration
that achieves China’s environmental
improvement goals without impairing
3 Waste360
trade of high-quality, specification- What exactly are “National
grade scrap commodities required by Sword” and “Blue Sky 2018”?
China’s manufacturing sector.” “National Sword” was an initiative that
—Robin Wiener, president of ISRI. took place in 2017, which inspected
“NWRA has always supported Chinese recyclables processing
China’s efforts to improve its facilities and shuttered many of the
Other resources of interest: environment. However, we believe smaller ones.
there are better ways to achieve those We are now in the midst of “Blue Sky
Chinese Customs Authority goals than to tighten restrictions on 2018,” scheduled to run March through
Launches “Blue Sky 2018” imported recyclables. We have said December of 2018. China’s customs
before that the 0.5 percent standard authority, the General Administration
How National Sword is would be nearly impossible for our of Customs of the People’s Republic of
Upending Exports members to meet, and it could cause China, has announced this period of
some short-term disruptions in the special actions against foreign garbage
Impressions and Insights from industry. However, it could also smuggling.
WasteExpo 2018 present opportunities as our members Zhang Guangzhi, spokesperson
continue to adjust.” —Darrell Smith, for the General Administration of
president and CEO of NWRA. Customs, said that the organization
SWANA, ISRI and NWRA have is fully committed to “investigating
all pledged to continue following a number of large-scale smuggling
developments related to this issue and cases of wastes, eradicating a number
their impact on the industry—as well of smuggling gangs and cutting off
as to work closely with governments, a number of smuggling routes and
stakeholders and the public and private chains of rubbish, and resolutely
sectors on education efforts and blocking ‘foreign rubbish.’”
contamination reduction efforts. Though it’s impossible to know
exactly what China is thinking, it is
250
assumed that some of its ultimate goals
Cumulative Chinese plastic waste imports (MMT)
n Historical n Projected Import ban with these programs are:
200
Displaced • A consolidation of recycling
plastic
150 waste = facilities into “Eco-Parks”
111MMT
• Larger, cleaner, better-regulated
facilities
100 • To bolster its own domestic
markets
50
Consequently, due to all of the new
regulations, U.S. exporters are seeing
0
1990 2000 2010 2020 2030
more inspections at ports both here
4 Waste360
and in China, as well as rejected loads. is now banned. That means there are
more than 13 million tons of paper on
What is the magnitude of the the global market looking for a place
impact on the U.S. recycling to go. Between the banned material
industry? and the 0.5 percent contamination
ISRI put the U.S.’ total scrap export standard, there is an oversupply of
Other resources of interest: market to China at $5.6 billion last paper and a demand for higher quality
year. And from West Coast ports, product at a lower price point.
The China Conundrum recyclables export (mostly to China)
was the single biggest export—24 What are some of the biggest
SWANA Provides Update on percent of the total. Needless to say, a challenges for recyclers in the
How China’s Waste Import number of states and localities are in a U.S.?
Restrictions are Impacting bind. Mark Reiter, assistant vice president
Recycling Programs There has thus far been a lack of and chief lobbyist at ISRI, categorizes
other markets for some of these the main challenges as below:
Industry Builds the Future of materials, which has depressed their
Recycling Amid China Ban Woes costs and resulted in them being • Meeting strict quality standards
stockpiled or sent to the landfill. • Inspection inconsistencies
China: One Year On “Without action from the federal • Market competition from China
government, this could shake public
confidence in recycling and create Robinson adds that:
long-term consequences,” said Smith.
One other illustration: in 2016, • Supply is inelastic, producing an
China consumed 28.5 million tons of unfortunate mismatch between
paper, more than 13 million of which supply and demand. MRFs are
expected to recycle curbside
materials regardless of end markets,
which is obviously presenting
challenges at the moment.
• Consumers, whether they are aware
of these new regulations or not,
expect whatever they put into their
recycling carts to be recycled—and,
they expect the service to be “free.”
What have been some specific
effects of the ban so far?
Waste Dive has been tracking the
effects of China’s scrap import policies
across the U.S. since 2017, offering a
5 Waste360
state-by-state breakdown and updates industry.” In light of the current ban
on its website. On the whole, Southern and regulations, and the fact that
states are feeling the least effect; China intends to phase out imports of
Western states the most. all recyclables by 2021, she urges the
For instance, hundreds of tons following actions:
of mixed paper recyclables in the
Other resources of interest: greater Seattle area are being sent • Work on quality; partner with local
to landfills. And Republic Services, stakeholders; look for solutions.
What Chinese Import Policies
which processes the recyclables from • Remember why we recycle—not to
Mean for All 50 States
Seattle and other surrounding cities, is divert the material but to “create a
seeking permission to send even more. valuable product that offsets the use
Recyclables in Seattle are Being Biderman reminds us of the overall of virgin resources.”
Landfilled Due to China’s significance of the changes: “A year • Create programs that prioritize
Restrictions ago, more than 200,000 tons of mixed actions for the greatest
paper and about 75,000 tons of scrap environmental good for the long
Waste Management Feels plastics were sent to China, and now, run.
Impact of China’s in the first quarter of 2018, nearly • Educate residents and businesses
Contamination Standard, zero tons were sent due to the new to “recycle right,” not just “recycle
Import Ban in Q1 2018 restrictions.” often.” We have to reduce confusion
on the part of people using
What can municipalities and recycling containers and services.
recyclers do?
Robinson advises that this is the The National Recycling Coalition
beginning of “the next recycling (NRC) elaborates that, “Residents may
be unsure about what can and cannot
U.S. Exports to China of Scrap be recycled, and cities and companies
Plastics & Mixed Paper don’t all accept the same materials for
recycling. This confusion often leads
250,000 to ‘wishful recycling’ from residents
and business that want to do the
200,000
right thing, but this concept actually
hurts the economy and environment
150,000
more than anything because it can
100,000 mix a dirty product in with a clean,
recyclable product, resulting in
50,000 contamination.”
From Biderman’s perspective: “In
0 the short term, we need to prioritize
Jan ‘17 Mar ‘17 May ‘17 Jul ‘17 Sep ‘17 Nov ‘17 Jan ‘18 Mar ‘18
education, update technology in
n Mixed Paper n Scrap Plastics MRFs, identify new markets for
6 Waste360materials and be more transparent and helping people understand the
about costs associated with recycling importance of recycling, is pushing for
as well as the revenue that’s generated society-wide standardized labels on
from the sale of recyclable material.” recycling bins.
For tools, webinars and further “Around 2009, contamination was
resources, visit RecyclingPartnership. such a large issue, and China was
Other resources of interest: org. The organization also provides already starting to warn the U.S.
infrastructure grants and consulting about the importance of keeping
NRC Calls for U.S. Recycling for communities to better their its recyclables clean,” noted Mitch
Improvements Amid China recycling programs. Hedlund, founder and executive
Crackdown director of Recycle Across America.
What are some of the longer- “Fast-forward to 2013, and China
Industry Associations Respond term implications for recycling officially warns the U.S. with its Green
to China’s Expanded Waste operations in the U.S.? Fence policy to restrict the amount
Import Ban NRC has recently explained that the of recyclables it would buy from the
recent moves from China have shined U.S. until the country cleans up the
Thailand Temporarily Halts a light on the United States’ poor materials. Nothing was done about
Imports of Plastic Waste, E- recycling efforts—and that citizens can it, so now, in 2018, China is banning
waste no longer pretend that waste diversion certain materials, which is causing
equals recycling. It is calling for the everyone to finally wake up about this
Could Standardized Recycling U.S. to improve these efforts as soon as issue.”
Labels Be the Solution to possible. NRC is calling for every aspect of
Overcoming the Industry's Toward that end, Recycle Across the industry to work together, and
China Ban Woes? America, a nonprofit dedicated to it’s working through collaboratives,
expediting environmental progress its series of Market Development
Workshops and Quarterly Market
Calls to take the necessary steps to
turn recycling into an industry with
quality products.
On top of the existing problems
and bans, China’s Ministry of Ecology
and Environment (MEE) says more
changes are coming. Sixteen types of
solid waste, including compressed
car scraps and scrapped ships, will
be banned from import beginning
December 31, 2018, and another 16
types, including stainless-steel scraps,
will be banned beginning December
31, 2019.
7 Waste360“The announcement serves as a energy-saving scrap commodities and
timely reminder that no one should will instead promote an increased use
be expecting China to roll back the of virgin materials in China, offsetting
recently implemented waste import the government’s intent to protect the
restrictions, and that we need to environment.”
support domestic, job-creating
Other resources of recycling markets here in the U.S.,” Are there any silver linings?
interest: said Biderman. Despite the array of both short- and
Wiener also commented on longer-term challenges, the Chinese
NRC Calls for U.S. Recycling the announcement: “The Chinese import ban does give U.S. recyclers the
Improvements Amid China government’s announcement will chance, and imperative, to clean up
Crackdown have an impact on more than 676,000 their act as well as get innovative and
metric tons, worth about $278 million, creative.
ISRI Advocacy Delivers for in U.S. scrap commodity exports to Among the opportunities that are
Recyclers in Latest Tariff China in the first year and another presenting themselves:
Measures 85,000 metric tons worth more than
$117 million in the second year. • Growth for companies that will
Vietnam Temporarily Although we anticipated more import consume plastics
Suspends Scrap Plastic Imports restrictions would be announced, we • A chance to invest in domestic
remain concerned about the effect processing capacity for plastics
these policies have on the global supply • Opportunities to sell into India,
chain of environmentally friendly, Canada, Mexico and Southeast Asia
We need to find more uses for our
Mainland China’s Share of Global Imports for materials, both domestically and
Selected Recycled Comodities, 2016 abroad. And make sure the materials
are of the highest possible quality.
100 %
90
80
How does the recent talk of
70
45% 45% 49% tariffs and the escalating trade
60 76%
war impact all of this?
50 97% The bottom line is that, “We are in the
40 midst of global uncertainty when it
30 55% 55% 51% comes to trade policies impacting the
20 recycling industry,” said Wiener.
24%
10
0 What’s next?
Iron and Copper Aluminum Recovered Plastic
Steel Scrap Scrap Paper & Fiber Scrap As we’ve witnessed, and in the words
n RoW n China Note: Values less than 10% are not labelled of Leone Young, principal of LTY ERC,
LLC, “China is not bluffing.”
Source: UN Comtrade Database
8 Waste360The recycling industry has to face Recycling is one tool in the toolbox
this new normal head on, work to achieve the goal of improving the
together, improve its processes and environment, and we need to focus on
capabilities, educate customers and recycling correctly … By bettering our
find new markets for its materials. education efforts and improving the
Many advocates hope the recent quality of materials, we can maneuver
Other resources of interest:
changes will force more domestic through this market challenge and
recycled product markets to develop, create a better future for recycling.”l
Why Your Recycling May End
but this will take time.
Up in Landfills
Hopefully, and ultimately, a
challenge like this encourages Visit Waste360.com for
China Stops Buying the World’s
our smartest and most innovative continuing coverage of this
Trash, Leaving 120 Million Tons
companies to find solutions and see important topic.
Up for Grabs
the possibilities in this crisis.
As noted by Jim Fish, president and
SWANA Provides Update on
CEO of Waste Management, “… We
How China’s Waste Import
simply cannot continue with the model
Restrictions are Impacting
in its current state.” Municipalities and
Recycling Programs
recyclers that are able to quickly adapt
will set themselves up for success.
The China Conundrum
Concludes Robinson: “As the cost of
recycling increases, maybe we should
start focusing more on upstream
recycling, which is really where we
get the most environmental benefits.
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