Three persons familiar with the case told Reuters that the Russian Copper Company (RCC) and Chinese enterprises circumvented taxes and the impact of Western sanctions by trading in new copper wire rod disguised as scrap.
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Copper wire rod was shredded in the remote Xinjiang Uyghur area
Copper wire rod was shredded in the remote Xinjiang Uyghur area by an intermediary, making it difficult to differentiate from scrap, according to the sources, allowing both exporters and importers to profit from tariff disparities between scrap and new metal.
Russia’s export tariff on copper rod
Russian’s export tariff on copper rod was 7% in December, lower than the 10% levied on scrap. Copper rod imports entering China are subject to a 4% tax, but scrap imports are duty-free.
