In foreign trade terminology, Scrap refers to goods that, due to damage, expiration, non-compliance with standards, or being beyond repair, have been inspected and confirmed to have lost their original use value and need to be disposed of by destruction, recycling, or abandonment. It is commonly encountered in customs, inspection and quarantine, insurance claims, and supply chain management in importing countries. Usage scenarios include: imported goods ordered destroyed by customs due to quality issues or regulatory violations; goods severely damaged in transit, with the consignee applying for scrap and filing a claim; and offcuts and defective products generated during production being exported or sold domestically as waste. Notes: Scrapped goods usually require inspection reports, scrap certificates, and photographic evidence, and local environmental regulations must be complied with; if tax refund or verification involves, timely declaration to customs and retention of documents are required. Unlike 'Return', scrap means the goods are not returned to the original shipper but disposed of locally; unlike 'Abandonment', scrap is an active, compliant disposal action, whereas abandonment may result from passive relinquishment when no one claims the goods. It is similar to 'Destruction', but scrap emphasizes the condition of the goods, while destruction emphasizes the method of disposal.
📝 Examples
1. Because this batch of electronic components failed inspection and cannot be repaired, our company has applied to customs for scrap disposal and commissioned a qualified environmental company to carry out destruction. (Note: Imported goods are scrapped and destroyed due to quality issues.)
2. A fire occurred during transportation, and some clothing was severely burned. After loss assessment, the insurance company agreed to handle it as scrap, and our company filed a claim with the inspection report. (Note: A transport accident led to scrapping of goods and an insurance claim.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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