BIS Determines Export Monitoring & Controls Are Not Necessary on Recyclable Metallic Materials Container Copper
The Bureau of Industry and Security (BIS) has issued a press release announcing that it has determined that neither monitoring nor controls on exports of copper and copper-alloy scrap are necessary.
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According to BIS, on April 7, 2004, the Copper & Brass Fabricators Council, Inc. and the Non-Ferrous Founders' Society filed a short supply petition requesting that BIS impose monitoring and controls on exports of recyclable metallic materials containing copper. BIS states that it carefully reviewed and analyzed this petition in accordance with Sections 3(2)(C) and 7(c) of the Export Administration Act (EAA), as amended (as implemented by 15 CFR 754.7).
BIS' findings on volume of exports, domestic prices, etc.BIS' findings include that the volume of exports of copper-based scrap has increased significantly over the subject time period (1999-2003 and year-to-date 2004), and that decreased domestic consumption, including the closure of the last independent U.S. secondary smelter, has been an important factor in the rise of exports.
BIS also found that copper scrap prices have increased significantly during the subject time period, but evidence does not demonstrate the existence of a shortage. BIS further states that the world market for copper cathode, not the level of U.S. exports of copper-based scrap, is the most important determinant in the fluctuation of domestic copper scrap prices, and evidence does not demonstrate a significant adverse effect on the U.S. economy or any sector thereof resulting from the domestic copper scrap price increase.
Therefore, BIS found that monitoring, export controls, or both, are unnecessary at this time in order to achieve the policy of Section 3(2)(C) of the EAA.
Schedule B classifications for copper/copper-alloy scrap to be refined. Although it did not find sufficient evidence to warrant imposing monitoring or export controls, BIS states that it will work to refine the Schedule B classifications for copper and copper-alloy scrap in order to better delineate the varieties of scrap that are being exported. BIS states that it will also work closely with the Office of the U.S. Trade Representative (USTR) and the Department of State to address any foreign government practices that are distorting trade in copper and copper-alloy scrap.
(BIS has previously stated that the commodities considered in this proceeding, identified by Schedule B number, are 7404.00.0020, 7404.00.0045, 7404.00.0062, and 7404.00.0080.)
(See ITT's Online Archives or 05/25/04 news, 04052535, for BP summary of BIS' comment request on additional questions regarding this petition. See ITT's Online Archives or 06/25/04 news, 04062599 5, for BP summary of the posting of the comments received.)
BIS press release (dated 07/21/04) available at http://www.bis.doc.gov/News/2004/copperjuly21.htm
BIS determination available at http://www.bis.doc.gov/DefenseIndustrialBasePrograms/OSIES/ShortSupply/CopperDetermination.pdf