In recent years, the high-end segment of the powder coating market has increasingly been dominated by well-known foreign manufacturers. At the same time, the price of domestic "waste powder" raw materials has continued to rise, pushing some small and micro enterprises to take risks in pursuit of profit. These companies have resorted to smuggling imported waste powder for processing and production. In turn, unscrupulous freight forwarding companies have exploited this situation, acting as hidden smugglers behind the scenes.
The powder coating industry in China is characterized by low entry barriers and severe overcapacity. For many years, most powder coating companies have followed a development model of "small profits, fast turnover, and winning through volume." To address the growing gap between rising raw material costs and stagnant product prices, some small and micro enterprises have directly participated in the smuggling of imported waste powder or purchased illegally imported waste powder from the domestic distribution market. This practice has further intensified market chaos and unfair competition.
According to the investigation into the "1203" case, these unethical freight forwarders went to great lengths to misrepresent the contents of their shipments. When applying for imports of powder coatings to Shanghai Customs, Nanjing Customs, Taicang Customs, and Tianjin Customs, they disguised the goods as "calcium carbonate" and "flux." They used 18 Chinese names and 13 different product codes, making it extremely difficult to detect.
Nanjing Customs revealed that they successfully dismantled the "1203" smuggling operation, which targeted the import of waste powder coatings. The operation led to the destruction of 19 smuggling networks across multiple regions, including Shanghai, Tianjin, Hebei's Langfang, and cities like Yangzhou, Taizhou, and Suzhou in Jiangsu Province. A total of 590 tons of waste powder were seized, along with 30,000 tons of smuggled goods involved in the case.
What makes this issue even more alarming is that the smuggling and importation of "waste powder" pose serious threats to environmental protection and public health. The illegal trade not only undermines the legal market but also endangers the environment and the well-being of people. It highlights the urgent need for stricter regulations, enhanced customs enforcement, and greater awareness among industry players to ensure sustainable and ethical business practices.
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