Shipment of scrap metal for export and recycling is a good practice. Together with collection and removing of contaminants, as well as reuse of metals, it is eco-friendly and contributes to the economy.
Shipment Equipment and Regulations
Before shipping these reusable metals, these have to be cut into pieces for easier handling. It can be in large or small pieces or crushed, McCamish Metals notes.
Exporters use specialised equipment for adequately reducing the volume of scrap metals. Shears and shredding machines are examples. These must be clean or treated to make it recycle-ready. It also removes contaminants that can cause harm such as diseases. The customs in New Zealand, in fact, includes this in the export regulations.
Scrap metal operators should also have a license issued under the Secondhand Dealers and Pawnbrokers Act 2004. They must also keep a record of all the scrap metal purchases to verify the seller's identity. The same works for their export clients.
Export Scrap Metals
There are different scrap metals traded internationally. One is the ferrous metal or steel for being widely used in today's metal industry. One of its main sources is abandoned car bodies. These undergo a compaction process via a bulldozer, while lighter steel through shredding.
Heavy steel, also ferrous metal, is thick steel found in abandoned construction equipment. Shipwrecks, cranes and old engine parts, for instance, have to be cut into pieces for shipment using heavy-duty equipment. Open hold vessels and magnetic lifting gear make shipment of heavy metals less laborious and costly. Whitegold is now a complex scrap due to light-weighting and technology changes.
Compared with ferrous metal, non-ferrous metal commands a higher price when sold. Copper and brass are a few examples. Sources of copper are telephone cables, water pipes and building wires. Car radiators and brass house fittings provide brass metal scrap.
Exporting scrap metal goods require a GST tax. The zero-rating rule applies to certain circumstances as specified in the changes made under the Goods and Services Tax Act 1985.