NEW YORK Some U.S.-based scrap exporters are experiencing significant delays on license renewals from Chinas General Administration for Quality Supervision, Inspection and Quarantine (AQSIQ).
Licenses granted by AQSIQ, a ministerial administrative organization governed by Chinas State Council, are typically renewed every three years and are needed for shipping most types of raw materials into Chinese ports.
AQSIQ renewals have recently recently been delayed, several exporters told AMM.
"This time around they are really behind," one exporter said Dec. 30, noting that his license was set to expire within the next 24 hours. Potential consequences include rejection of material or material being quarantined at port until the proper paperwork can be obtained.
"We have not received our license, and in years past customs has rejected stuff if you didnt have a license," he said, adding that he had been given "assurances by officials in Hong Kong" that material wouldnt be rejected because of the delay. "We have heard that people at port have a list of approved names. ... I think its just a bunch of red tape."
A Texas-based spokeswoman for AQSIQ said the delay was due to personnel changes at the groups headquarters in China. "Some people are experiencing delays because of changes in authorities," she said. "Right now, they cannot promise to import to China without the proper licenses, and all material will be rejected without the proper paperwork."
Administrative issues in China are nothing new to U.S. exporters, but the problems are spurring some to look to other countries as possible destinations for material.
"This time it was supposed to be perfect, but once again they are incapable of doing what they set out to do," the exporter said. "There is a sentiment building upwe dont care where our metal goes, and this is just another example of them trying to make it more difficult for the shippers."