Import Iron Ore Agency Operation Guide

Import Iron Ore Agency System: A Practical Guide from Clearance to Compliance

Last year,a Mr.Gu entrusted us to act as an agency for importing Australian iron ore.Upon arrival,the draft survey report showed a 3% weight difference from the contract.The buyer requested a deduction for shortage.By verifying the ship’s remarks in advance and coordinating with the commodity inspection agency for an on-site re-check,we finally reached a compromise based on the industry practice of "allowing a ±2% error in draft survey," avoiding a loss of over 2 million.This is the value of the iron ore agency system—using expertise to avoid 90% of hidden risks.

I.Core Value of the Agency System: Dual Control of Qualifications and Risks

As a bulk commodity,the essence of the iron ore import agency system is "specialization of labor." We need to assist clients in completing four core tasks:

• Compliance Access: Ensure goods comply with the "Administrative Measures on the Import of Solid Wastes" to avoid customs return due to suspicion of being "foreign garbage."
• Process Optimization: Integrate the entire chain of booking,bill of lading release,customs declaration,and inspection application,shortening the time at Shanghai Port by an average of 3-5 working days.
• Cost Control: Reduce demurrage charges through long-term cooperation agreements with shipping companies; for a certain Brazil route in 2026,a single shipment saved over 150,000.
• Forex Safety: Connect with bank cross-border RMB settlement channels to avoid exchange loss risks caused by exchange rate fluctuations.

Relying on 20 years of experience,Zhongshitong has built a "three audits and three checks" risk control system: auditing documents,processes,and prices; checking weight,composition,and compliance.

II.Customs Valuation and Tariff Classification: Key Operations and Risk Points

The HS code for iron ore is usually 72011000 (unwrought iron and non-alloy steel),but special attention is needed:

• 2026 Tariff Adjustment: For iron ore imported from certain countries,due to the "non-full tailings" attribute,the tax rate rose from 3% to 5%,requiring confirmation of the Certificate of Origin in advance.
• Transaction Price Dispute: Customs often audits prices on the grounds of "whether the landed cost includes port miscellaneous charges." We suggest the contract clearly states "CIF + lump sum port charges" to avoid disputes.
• Classification Skills: If the ore contains Vanadium (V2O5≥0.5%),the HS code may change to 72059900,applying a 0% tariff,requiring advance communication with the customs classification department.

Practical Suggestion: The agency needs to submit a "Price Explanation Letter" 7 working days in advance,attaching the ocean bill of lading,commercial invoice,and packing list,with special emphasis on marking the weight source of the "Draft Survey Report" (e.g.ship’s remarks).

III.Commodity Inspection Pre-review and Quality Inspection Certificate (MTC)

Commodity inspection for iron ore is a core link,and the MTC certificate directly determines the payment ratio of the goods.New requirements for 2026:

• Harmful Element Testing: Arsenic (As) ≤0.005%,Lead (Pb) ≤0.008%; exceeding standards may trigger environmental detention.
• Moisture Control: Australian mines usually require a moisture content of ≤8%,while some mining areas in Brazil allow 10%; the threshold must be clarified in the contract.
• Appearance Inspection: Strictly prohibit mixing with scrap steel or slag; the quality inspection report at the loading port must be checked in advance.

IV.Import License and Solid Waste Identification

After the revision of the "Administrative Measures on the Import of Solid Wastes" in 2026,the iron ore identification process is stricter:

• Submission Materials: "Environmental Assessment Report for Imported Waste Raw Materials," "Pre-shipment Inspection Certificate," and foreign supplier qualifications.
• Identification Standards: Must comply with GB 30770-2014 "Identification Standards for Hazardous Wastes," focusing on excluding "industrial waste with excessive heavy metals."
• Special Cases: If goods come from RCEP member countries (e.g.Indonesia),you can apply for a FORM E Certificate of Origin,reducing tariffs by 1-3 percentage points.

Risk Warning: A steel mill once failed to submit a radioactivity detection report,causing goods to be detained at Yangshan Port for 12 days,generating 320,000 in demurrage charges.Zhongshitong ensures identification is completed within 24 hours after arrival by booking a "radioactivity detection green channel" with the Shanghai Commodity Inspection Bureau in advance.

V.Three Major Risk Warnings for Iron Ore Agency in 2026

1.Demurrage Trap: Routes to Brazil and Australia often extend loading times due to the rainy season,so the demurrage cap needs to be locked in advance.We suggest signing a "Demurrage Cap Agreement" with the shipping company,capping at 8,000 per day; one client saved 350,000 this way.

2.Exchange Rate Fluctuation: Iron ore imports are mostly settled in US dollars.Under the Fed’s rate hike cycle in 2026,exchange rate fluctuations may cause a surge in costs.Through the "Lock Exchange Rate + Batch Settlement" strategy,exchange loss can be reduced by 1.2%-1.8%.

3.Upgrade of Environmental Standards: The EU’s "Carbon Border Adjustment Mechanism (CBAM)" expands its coverage in 2026.Iron ore imports require an additional carbon emission report,and the agency needs to check the supplier’s carbon footprint data in advance.

VI.Zhongshitong’s Iron Ore Agency Service Advantages

1.Port Collaboration: Capable of "remote declaration" at Shanghai Yangshan Port,Waigaoqiao Port,and Ningbo Port,directly connected to the General Administration of Customs’ "Single Window," with customs declaration speed 2-3 days faster than peers.

2.Global Agency Network: Overseas liaison offices set up at Dampier Port in Australia and Santos Port in Brazil,locking berths 3 days in advance to avoid port congestion.

3.Risk Control System: Established a "Three Audits and Three Checks" mechanism (auditing documents,processes,prices; checking weight,composition,compliance).Since 2026,there has not been a single return caused by agency errors.

The iron ore import agency system is not simply "running errands," but using 20 years of experience to turn "passive risks" into "active control." Whether you are a first-time contact or a senior practitioner,you can contact Zhongshitong to get a free "Iron Ore Import Risk Self-Check List" to help enterprises maximize benefits within the compliance framework.