In recent years, the high-end segment of the powder coating market has increasingly been dominated by well-known foreign brands, while domestic raw material prices for "waste powder" have steadily climbed. As a result, some small and micro enterprises are taking risky actions to maximize their profits, smuggling imported waste powder from abroad for processing and production. These illegal activities have created a shadow industry, with unscrupulous freight forwarding companies playing a key role in facilitating these operations behind the scenes.
The powder coating industry in China is characterized by low entry barriers and severe overcapacity. For many years, most companies have relied on a model of "small profits, fast turnover, and winning through volume." To cope with rising raw material costs and stagnant product prices, some smaller firms have turned to smuggling imported waste powder as a way to gain an unfair advantage. This not only undermines fair competition but also poses serious risks to the environment and public health.
According to the investigation into the "1203" case, unscrupulous freight forwarding companies disguised their illegal imports by falsely labeling them as "calcium carbonate" or "flux" when applying for customs clearance at Shanghai, Nanjing, Taicang, and Tianjin Customs. They used 18 different Chinese titles and 13 product codes to obscure the true nature of the goods, making it extremely difficult for authorities to detect.
Nanjing Customs recently announced that they successfully dismantled the "1203" smuggling case, which involved 19 criminal gangs operating across Shanghai, Tianjin, Hebei's Langfang, and cities in Jiangsu such as Yangzhou, Taizhou, and Suzhou. A total of 590 tons of waste powder were seized during raids, along with 30,000 tons of smuggled materials. This operation marked a major victory in the fight against illegal imports in the powder coating sector.
What makes this issue even more alarming is that the smuggling and importation of "waste powder" pose significant threats to environmental protection and public health. These materials often contain harmful substances that can pollute soil, water, and air, endangering both ecosystems and human lives. The long-term consequences of such illegal practices could be devastating if left unchecked.
It’s clear that stronger regulations, stricter enforcement, and increased awareness are urgently needed to curb this growing problem and ensure a safer, more sustainable future for the powder coating industry.Steel Structure Materials,Galvanized Steel Pipe,Hot Rolled Steel,I Beam
Guangdong Tianchen Steel Structure Engineering Co. Ltd. , https://www.tcsteeltech.com