Malaysia’s Ministry of International Trade & Industry (MITI) announced on Sept. 1 an extension of the interim period for preparing for the implementation of the new import requirements on ferrous and nonferrous metals. Instead of the regulations being in place Sept. 1 as many observers expected, the preparation period will extend to Oct. 31. Enforcement of the requirements developed by SIRIM-QAS, a government-owned company, is expected to start Nov. 1.
In a memorandum to ISRI members, Adina Renee Adler, ISRI’s vice president of advocacy, states: “I am working to confirm if this delay applies to recovered paper shipments, too.” She further states: “What we are considering now is how we can use the two-month extension to advocate for revisions that would allow trade to continue in most, if not all, specification grades.” ISRI is working with partners in Malaysia to continue advocating for revisions.
Under the guidelines, only a manufacturer or a subsidiary of a manufacturer can make the imports; a third-party trader broker is not eligible. Volume is based on the quota of raw material required not to exceed maximum annual production. Importers must provide a bank guarantee based on the maximum shipping and incidental costs.
ISRI has also learned China is studying trade flows through Malaysia and other countries with the intent of imposing tariffs on processed metal from those countries where the commodity originally was sourced from the United States. If implemented, this would negatively impact U.S. exports.
The Biden administration has yet to announce a timeline for new trade negotiations with China. U.S. Trade Representative Katherine Tai met Aug. 24 with the U.S. Chamber of Commerce’s China Center advisory board and the leadership of the US-China Business Council. She “acknowledged the significance of the U.S. trade relationship with China, and emphasized the importance of a thorough strategic assessment to craft resilient trade policy that supports the administration’s efforts to create jobs, raise wages, and strengthen our communities,” according to an agency readout of the meeting.
Featured photo courtesy of mkjr on Unsplash. Body photo courtesy of Fredrick Filix on Unsplash. Body photo caption: A container ship docks in Port Klang, Malaysia’s largest seaport.