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Importing Scrap Metal: A Guide to U.S. Regulations and Policies

An illustrated graphic showing industrial magnets picking up various pieces of metal scrap.
Importing scrap metal into the USA requires knowledge of specific customs rules and regulations. Learn all about them here.
December 22, 2023
Last Modified: May 23, 2025
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Importing scrap metal into the U.S. can be a lucrative business, especially with stricter tariffs in place for steel and aluminum. However, materials must still meet U.S. standards and rules, which can change with little notice. With a little experience and know-how on your side, you can realize the benefits of this venture.

Key Takeaways: 

  • Understanding metal types, proper HTS classification, and supplier reliability is essential to avoid customs delays and ensure compliance upon entry.
  • Most imports of scrap metal enter the US through Canada and Mexico, which reduces shipping costs for businesses. 
  • Imported scrap metal must comply with CBP’s standard processes as well as quality standards and licensing through the EPA if applicable. 
  • Steel and aluminum scrap are not currently subject to Section 232 tariffs, making them more cost-effective to import than some finished metal products or raw materials. 

We'll walk you through the whole scrap metal importing process, from understanding the standards to ensuring your scrap clears customs without any issues.

Scrap Metal Imports: Terms and Definitions

Like any other import business, understanding your product is vital for success. Whether you're importing scrap metal for resale or as a manufacturing component, you'll need to be familiar with certain terms unique to the business.

Let's break down some of these key terms and their significance in the scrap metal importing process.

  • Scrap Metal: Essentially, this is recycled metal. It includes bits and pieces of metal objects that are no longer in use, or parts leftover from manufacturing and usage.
  • Ingot: Ingots are metal pieces of relatively uniform size intended for easy processing. They can be made of iron, aluminum, copper, and other metals.
  • Pig and Sow: In metalworking, 'pig' refers to the crude iron cast into a block or bar shape using a pig casting machine. These blocks look like piglets, hence the name. The 'sow' is the main channel in the mold where the liquid metal is poured and from which the 'pigs' are formed.
  • Bale: A bale in scrap metal terms refers to a compressed metal scrap import, bound together, making it easier to handle, transport, and recycle.
  • Shred: Shredding is a process of cutting scrap metal into smaller pieces. This is often done to make melting the metal down easier.
  • Birch/Cliff: In the scrap metal industry, 'Birch' refers to clean, uncoated, unalloyed copper wire, whereas 'Cliff' is typically the term for copper with a tin coating or soldering.
  • Foundry Grade: This is a specific quality of scrap metal, suitable for use in a foundry for melting down and creating new products.
  • HMS1: HMS stands for Heavy Melting Steel. HMS1 refers to clean iron and steel with a thickness of 1/4 inch or more that doesn’t contain blackened or galvanized steel. 
  • HMS2: HMS2 includes steel and iron thinner with a minimum thickness of 1/8-inch that includes galvanized or blackened steel.

HMS is further categorized according to overall dimensions using an ISRI (Institute of Scrap Recycling Industries) number. 

A double layer table. First table breaks down HMS 1 Scrap metal dimensions. First column is for the ISRI number and the second column is for the HMS sizing. Under HMS 1, there are two entries: ISRI 200 measuring smaller than 36”x18”, and ISRI 201 measuring smaller than 60”x18”. The second table is for HMS 2 Scrap Metal dimensions with the same column labels. From top to bottom they are: ISRI 203 measuring any width and length at least ⅛ of an inch thick, ISRI 204 measuring smaller than 36”x18”, ISRI 205 measuring the same as a 204 with thin gauge scrap from vehicles, and ISRI 206 measuring smaller than 60”x18”. 

Graphic provided by USA Customs Clearance. Source: metalmenrecycling.com

Understanding these terms and dimensions is essential for anyone in the business of reselling or processing imported scrap metals. 

For that, you’ll need to know the various types of scrap metal eligible for import. 

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Types of Imported Scrap Metal

Depending on your purposes, you may need to import several kinds of scrap metal. At their most basic, they can be separated into ferrous and non-ferrous categories.

Ferrous metals contain iron, are usually structural, and include:

  • Stainless and alloy steel varieties: Often made up of construction materials, old vehicles, and manufacturing scrap. It's magnetic and known for strength and durability.
  • Cast and/or wrought iron: Different varieties are prized for their strength and malleability, and can be easily remade into other products.

Non-ferrous metals do not contain iron and have more specialized applications:  

  • Copper: A highly conductive metal which makes it a vital component of most electronic devices.
  • Aluminum: Lightweight and resistant to corrosion, easily formed into other materials.
  • Brass: Often found in plumbing fixtures, decorative items, and musical instruments, brass is a mixture of copper and zinc.
  • Lead: A heavy metal often recycled from batteries and old pipes, but its toxicity makes handling and recycling more difficult.
  • Nickel: Valued for its high corrosion resistance, it is a key component of stainless steel.
  • Zinc: Common in die-casting alloys, zinc scrap can be sourced from galvanized steel and automotive parts.

Differentiating between these types is important for several reasons; not only for recycling and processing purposes, but also for complying with regulations and paying the correct duty assigned.  

What US Agencies Regulate Scrap Metal Imports?

Several government agencies and systems play a key role in the process of importing scrap metal. Understanding their function and authority can help you handle the import process more effectively. As with all imports, Customs and Border Protection (CBP) is the main agency you need to deal with.

Here’s a rundown of other major agencies involved and their roles.

  • Environmental Protection Agency (EPA): They set guidelines to ensure that imported metals are free from hazardous materials to prevent the entry of contaminated scrap into the US.
  • Steel Import Monitoring and Analysis (SIMA) System: Used to license and monitor the import of steel. This is mostly done for the purposes of adjusting tariffs. 
  • Aluminum Import Monitoring (AIM) System: Similar to SIMA, but used for aluminum.

Each agency develops and enforces its own regulations, which can sometimes overlap. It’s important to be thorough in your compliance efforts if you decide to import scrap.

How Much Scrap Metal Does the US Import?

The United States is one of the world’s largest scrap metal importing countries. In 2022 alone, over 4.72 million metric tons of scrap steel, copper, and more made its way to American shores. 

The following three countries accounted for the lion’s share of scrap metal imported to the USA in 2022.

Table titled, “2022 Scrap Metal Imports to US”. There are two columns, one for the Country of Origin and the other indicating the Metric Tons of Scrap imported from that country. First is Canada with 3.51 million, next is Mexico with 628 thousand, and finally is Sweden with 175 thousand. 

Graphic by USA Customs Clearance. Source: statista.com

Canada and Mexico continue to be the most popular sources of scrap due to the variety of metals available and the reduced shipping time. 

How to Import Scrap Metal into the US in 7 Steps

Scrap metal importers should consult CBP guidelines for the specific type or types of metal they plan to import. However, the basic steps are more or less universal.

Let’s review seven steps you’ll need to focus on.

  1. Identify which import regulations apply to your shipment: Before anything else, familiarize yourself with regulations specific to the scrap metal you plan on sourcing. 
  2. Identify a reliable supplier: Find a supplier you can trust, one with a good track record in quality and consistency. 
  3. Verify the quality and type of metal: Make sure the scrap you’re importing meets U.S. standards and confirm is tariff classification beforehand.
  4. Obtain necessary licenses and permits: These may vary by type. For instance, if you're importing steel, you'll need a SIMA registration.
  5. Prepare import and clearance documents: This includes bills of lading, purchase orders, shipping documents, and any other required paperwork which can be requested by CBP or another involved agency.
  6. Logistics and shipping arrangements: Decide on the best way to bring your goods into the country, and work with the carrier to ensure everything is packaged and labeled to comply with entry regulations. You’ll want this done well in advance of your goods arriving.
  7. Customs clearance: Final entry requires proper declaration, paying any applicable duties and taxes, and undergoing any necessary inspections.

Accurate documentation is critical to avoid holds that are often attached to costly fees. The best way to accomplish that is with the right support services, usually in the form of full service customs brokerage that can manage details from origin to destination. 

Related: What Documents Do I Need To Import and Export?

Import Costs: Scrap Metal Tariffs and Duties

Given the wide variety of materials covered by the term ‘scrap metal’, duties and tariffs will differ. To determine your exact costs, first find the exact Harmonized Tariff Schedule (HTS) code(s) that describes your import(s). 

HTS code assigned duty rates will vary by metal. Typically, your fee will be based on value per kilogram. 

Depending on where you import from, there may be additional fees involved. As of April 2025, for example, there is a 10% baseline reciprocal tariff in place for nearly all trading partners. 

Mexico and Canada are the only current exceptions to this rule. However, scrap from there may still be subject to an executive order tariff that was put in place in March 2025, which can add a 25% ad valorem flat rate to your import. 

If your shipment exceeds $2,500 in value, which scrap metal typically does, you will also need to secure a Customs Bond sufficient to cover any applicable duties and fees. The same applies if the scrap metal requires further documentation with another agency, such as the EPA. 

Is Scrap Metal Exempt From Section 232 Tariffs? 

Currently, steel and aluminum imports to the U.S., and various downstream products, are subject to a 25% additional ad valorem tariff imposed by Section 232. 

At this time, no HTS codes describing steel or aluminum scrap metal are included in the orders, so these are exempt from the 25% tariff

However, be aware this is specific to scrap. Finished metal products that have been made with scrap or recycled metal may still be listed among the downstream products that are subject to the additional ad valorem tariff imposed by Section 232. 

How USA Customs Clearance Can Help 

Importing scrap metal has many benefits, not just for businesses, but for the environment as well. However, bringing scrap into the USA can be a challenge without the right help. That’s where we come in.

USA Customs Clearance brokers have over a century of combined experience assisting businesses who need to bring imported goods to the United States.  No matter what questions or complications you face in your import journey, we have the know-how you need to excel.

Trust our team for assistance with:

Don’t be deterred by the complexity of U.S. customs. Give us a call at (855) 912-0406 or complete a contact form with a direct inquiry online today. We’re standing by to help you with every aspect of the import process.

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Latest comments (1)

Abner Castro

Hi, I would like to ask regarding the importation of Scrap Aluminum UBC Beverage Cans in China. Can I buy thru Alibaba Delivery Duty Paid . That item from China can deliver to my address in Oceanside CA.

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