International Trade in Recyclable and Hazardous Waste in Asia

International Trade in Recyclable and Hazardous Waste in Asia

Edited by Michikazu Kojima and Etsuyo Michida

Little is known about the volume of international recycling in Asia, the problems caused and the struggle to properly manage the trade. This pathbreaking book addresses this gap in the literature, and provides a comprehensive overview of the international trade flow of recyclable waste in Asia and related issues.

Chapter 8: Impact of the raw material import duty reduction system on international waste trading

So Sasaki

Subjects: asian studies, asian economics, asian environment, economics and finance, asian economics, environmental economics, international economics, environment, asian environment, environmental economics


Many Asian countries have pursued export-oriented industrialization for their growth strategies. One of the core policy measures for export-oriented industrialization is the establishment of export processing zones (EPZs) using the raw material import duty reduction system (Table 8.1). Amano (2005) pointed out that “in Asian countries, although the contents of export-oriented industrialization policies are characterized by individual countries and regions, the policies oblige foreign companies to export their products, in return for providing the import permit and the duty exemption on materials and/or equipment, and the other tax incentives.” Many foreign companies have invested in export-oriented industrial parks in developing Asian countries such as China, Thailand, Malaysia, Indonesia, and the Philippines. They import raw material for the processing and assembly of their products, and export the products to other countries. Import duty reduction systems stimulate investment incentives for foreign companies. However, the import duty reduction system can be utilized as a route for smuggling into the domestic market.

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