Exporting scrap metals and fibre to Malaysia? Learn how to adapt and comply with the new inspection rules

Malaysia has become a major destination for exports of scrap metals and waste paper and cardboard for US, UK and EU recycling exporters.

For example, Malaysia was the number one destination for US exports of aluminium in the first half of 2021, and the second for copper scrap after China, according to Argus. 

When it comes to paper and cardboard, in 2020 Malaysia imported $162 million worth of material. Of this, 33% came from the UK and 24% from USA. This data is from Trend Economy. 

In recent years, China has banned imports of waste paper and cardboard, and last year only permitted very high quality scrap metal imports that were beyond the sorting capabilities of many exporters.

With Chinese metal and paper groups investing in the country, Malaysia has become a major destination for scrap metal and paper and cardboard. Often this material is processed there before being shipped as recycled metal or pulp to China. 

However, in order to ensure only high-quality material enters the country, Malaysia introduced new inspection measures and Certificates of Approval (COA) on 31 December 2021 for implementation on 10 January 2022.

Scrap metal

The following apply for imports of scrap metal into Malaysia:

• All scrap metal imports into Malaysia require a COA issued by Malaysian inspection authority SIRM.

Only these grades are permitted: 

• HS Code 7204: Ferrous waste and scrap; remelting scrap ingots of iron or steel.
• HS Code 7404: Copper waste and scrap.
• HS Code 7602: Aluminium waste or scrap. 

• Only manufacturers with a licence can import, or importers with an agreement with manufacturers to supply material.

There are also rules on the quantity of non-target metals, other recoverable materials such as plastic, and electrical waste for each grade.

Depending on the licences held by the importer, there will also be four different inspection processes that can involve both pre-shipment and dockside inspection in Malaysia.

For detailed information, view the full guidelines on the SIRIM website. 

Paper and cardboard

The following apply for imports of waste paper and cardboard into Malaysia:

• All recovered paper and cardboard imports into Malaysia require a COA issued by Malaysian inspection authority SIRM.

Only these grades are permitted: 

• HS Code 4707.10: Unbleached kraft paper or paperboard or corrugated paper or paperboard.
• HS Code 4707.20: Other paper or paperboard made mainly of bleached chemical pulp, not coloured in the mass.
• HS Code 4707.30: Paper or paperboard made mainly of mechanical pulp (for example, newspapers, journals and similar printed matter).
• Imports of HS Code 4707.90 for mixed papers are no longer permitted.

• Only manufacturers that have been approved and received a licence are permitted to import.

Depending on the licences held by the importer, there will also be four different inspection processes that can involve both pre-shipment and dockside inspection in Malaysia.

For detailed information, view the full guidelines on the SIRIM website.

How can AMCS help you if you are preparing material for export to Malaysia?

Recycling and waste management companies exporting to Malaysia (or indeed any other destination) need to ensure they meet the rules of the company they are exporting to in terms of quality.

The AMCS Grading and Quality modules help businesses ensure suppliers provide the material at the specified quality. 

This means you can provide evidence of material quality to inspectors that matches the integrity of the bale when it comes to inspection. Therefore, your business is likely to be treated more favourably by inspectors when you can show you have quality processes in place.

Additionally, our Demand Planning module helps you match supply and demand, ensuring you have the right specification of material available when Malaysian buyers require metal or paper and cardboard. 

When matched with our specialist metal recycling and paper recycling software, you can be sure that your trading is backed up by solutions that enable you to meet the new Malaysian regulations and those of any other export destination. 

By using our powerful solutions through our Platform, you can reduce the risk of rejected loads, and increase the chances of material being accepted by Malaysian authorities.  

Learn more here  about the AMCS solutions that will allow you to prepare for tightening global export restrictions.