Colin Staub is a reporter at Resource Recycling. He can be contacted at [email protected].Update: China has filed its official contamination proposals with the World Trade Organization, and they list a 0.5 percent threshold for most recyclables, down from the 1 percent limit that was previously considered.
China will shift its planned threshold for contamination in scrap paper imports from 0.3 percent to 1 percent, seemingly in response to concerns the original proposed limit would be impossible to hit.
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China officially announced last month that most inbound loads of recyclables will be allowed no more than 0.5 percent contamination, which is slightly less stringent than initial proposals. But industry executives recently noted that when it comes to recovered paper, that’s largely a moot point.
Multiple industry associations have renewed calls for China to reconsider its import restrictions in the weeks leading up to the country’s planned ban on certain recovered materials entering the country.
The federal tax bill before Congress this week retains tax incentives and exemptions that could boost the recycling sector.
Pratt Industries plans to break ground on a sizable recycled containerboard mill in the Midwest next year, a move that’s part of the company’s vertical integration strategy.
A key unknown during the Congressional tax negotiations was the fate of tax-exempt private activity bonds, which are frequently utilized in the solid waste and recycling industry. It now appears they’ll be retained.
China is unprepared to effectively roll out and enforce its planned Jan. 1 ban on imports of certain recyclables, according to recycling leaders who recently traveled to the country in search of answers.
Graphic Packaging closed down its Santa Clara, Calif. facility in early December. Photo: Google Maps
Graphic Packaging closed its Santa Clara, Calif. recycled paperboard mill at the beginning of December, citing high costs and market volatility as contributing to the decision.
A top Chinese environmental official recently indicated that China has plans to enforce upcoming import restrictions “to the letter.”
Tax reform legislation moving through Congress could help recycling companies deduct equipment expenditures.
Tax reform bills approved by the U.S. House and Senate include sweeping cuts to business taxes, and recycling industry associations are applauding the business-friendly measures.