Analysis on increasing transactions of imported PET flakes

Recently, many customers enquired about the imports of PET flakes. In fact, rumors about the importability of PET flakes in certain regions have been circulating since Jul-Aug. However, these rumors are not accurate.

In reality, after the ban on solid waste imports in 2018, a letter from the Ministry of Ecology and Environment's Office to the General Administration of Customs in May clearly stated: "If imported high-purity recycled PET flakes have undergone sorting, crushing and cleaning overseas, and meet the performance and index requirements of Class A, B, and C as stated in the 'Recycled PET Flakes' (FZ/T51008-2014) standard, they can be used as a direct substitute for virgin PET without being subject to solid waste regulation." This policy not only solved the raw material sourcing issue for the industry but also provided strong support for the development of China's recycled chemical fiber industry and effectively eliminated the import of low-quality waste materials. It received positive responses from industry enterprises. Since May 2018 to the present, some companies have successfully imported high-purity PET flakes. However, the import of PET flakes is not smooth due to high standards and complex inspections. Since its implementation, customs have repeatedly seized non-compliant PET flakes and returned them, resulting in significant losses for early-stage trial companies. As a result, most companies are hesitant to import.

The recent increase in imported supply in the market may be related to the implementation of the new national standard for PET flakes (GB/T4006.9-2021 Plastic, Recycled Plastics, Part 9: Polyethylene Terephthalate (PET) Materials). It is heard that some customs laboratories have conducted tests based on this standard, which has relatively loose requirements compared to the aforementioned industry standard. From what is known in the market, the imported supply currently being traded mainly comes from suppliers (Chinese operating overseas factories) who import on their own or from traders who import and sell to Chinese domestic downstream customers in Chinese yuan. Some domestic recycled chemical fiber plants have the intention to import independently, but no action has been seen, mainly due to concerns about the risk of return shipments. Based on the information available, there are no specific documents from relevant departments indicating which standard to use for inspections. If companies have the intention to import, it is recommended to directly inquire with the corresponding customs authorities.

It remains to be seen whether there will be a significant increase in the import volume of PET flakes in the future.