US approves Chinese tariff waiver extension on auto shredder wear parts

The Office of the United States Trade Representative (USTR) has announced it will reinstate certain previously granted and extended product exclusions in its Section 301 investigation into China’s acts, policies and practices related to technology transfer, intellectual property and innovation by excluding certain products from additional duties.   

This includes the tariff exclusion on shredder wear parts, retroactive to 2021, and extends the exclusion through Dec. 31, 2022. Shredder wear parts imported from China will not be assessed the additional 25 percent tariff that former President Donald Trump imposed in 2019 during this period.  

The Institute of Scrap Recycling Industries (ISRI), Washington, says the USTR granted an exemption in 2019, and in 2020 the government allowed companies and organizations to request the continuation of the exemption for one year, which was granted to all that requested it.  

Last year, the USTR invited public comments on whether to reinstate previously extended exclusions of 549 products, including shredder wear parts. ISRI says it submitted comments explaining why the exclusion for shredder wear parts should be reinstated. It also explained how tariffs have caused economic harm to U.S. small businesses, employment, manufacturing output and critical supply chains.  

ISRI says wear parts are essentially the heart of a shredder and need to be replaced almost daily, so having them in bulk is vital for U.S. recyclers. Since more than 85 percent of shredder wear parts are sourced from China, and those costs amount to 60 percent to 70 percent of the cost of operations in this sector, the 25 percent tariff would make a huge difference, especially to smaller operators.