The import permit belongs to your buyer, and it comes first
Malaysia is one of the biggest destinations for the world's scrap, and many Australian exporters first meet its rules when a buyer mentions an acronym and a requirement that decides whether the shipment can happen at all. The good news is that the system is well defined. The key point is that the main permit belongs to your buyer, not to you, and it needs to be in place before your cargo arrives.
This covers general metal scrap, not e-waste. Rules change, so verify the current position with Malaysian authorities before you commit.
Why Malaysia
Malaysia is a significant scrap importer, particularly of non-ferrous metal, and a regional processing hub. Some of that role grew after China tightened its own scrap import rules from 2018: Malaysia's copper scrap imports, for example, rose from about 17,000 tonnes in 2017 to a peak of about 570,000 tonnes in 2019, and it has been a leading supplier of aluminium scrap to China. For an Australian exporter, it is a relatively close, established market with many mills and processors. To see how it ranks against the other big importers, read The World's Biggest Scrap Metal Markets.
The permit that matters: the Certificate of Approval
Malaysia controls imports of metal scrap through a Certificate of Approval, usually shortened to COA. It is issued by SIRIM QAS under the Customs (Prohibition of Imports) Order, with the policy administered by the Ministry of Investment, Trade and Industry (MITI). It is applied for online, and it is the document actually needed at the point of customs clearance.
The most important thing to understand is who holds it. The COA is held by the importer, your buyer, not the exporter. But a shipment cannot clear without it, so you need to confirm it is in place before you ship, not after the cargo is at sea.
Which materials are covered
| Tariff code | Material | Note |
|---|---|---|
| HS 7204 | Ferrous waste and scrap, including remelting ingots of iron or steel | Covered from the January 2022 guidelines |
| HS 7404 | Copper waste and scrap | Covered from the January 2022 guidelines |
| HS 7602 | Aluminium waste and scrap | Covered from the January 2022 guidelines |
The list of controlled categories was expanded in April 2024, so do not rely on an older list. Check your exact tariff code against the current requirements. The same goes for the detail of who may import: under the 2022 guidelines, imports have been limited to licensed manufacturers, or to importers who have an agreement to supply them, which is a further reason to verify your buyer's status early.
Know what your aluminium, copper or steel is worth before you quote.
Check live pricesOn the Malaysian side: what your buyer must have
The right tariff code
Confirm that your material's code is one that the COA system controls, and that your buyer's COA covers it. A COA for ferrous scrap does not cover aluminium.
A valid SIRIM Certificate of Approval
Your buyer applies online, and it must be approved before the shipment arrives. If the buyer has not yet applied, the timeline is the main risk.
A bank guarantee
SIRIM requires the applicant to provide a bank guarantee as security for compliance with its import guidelines. It is a lead-time item for your buyer to arrange, so confirm that it is in place before you commit to a shipping date.
On the Australian side
Check whether you need an export licence
Depending on the type and quantity of scrap, Australian export controls may require a licence before the shipment leaves. Check early, since it affects your timeline more than any other step.
Prepare accurate customs declarations
Metal type, value and destination must be declared correctly, and errors are one of the most common causes of delay. Make every document describe the material in the same way.
Prepare for inspection requirements
Malaysia's guidelines have described inspection of scrap, including checks at origin by a certified third party, limits on contamination such as electronic waste, and a depollution certificate for scrap from vehicles and machines. These details have been revised over time, so ask your buyer exactly what evidence they need from you and confirm it with current Malaysian guidance.
Plan a load that suits the freight
Export runs typically make sense from around one to five tonnes, depending on the metal, and a standard container holds roughly 20 to 25 tonnes. Plan the load size around what is economical to ship.
How long does the set-up take?
It depends on how quickly a buyer's bank guarantee and COA application are processed, and that is not something to leave until the shipment is booked. If you are working with a buyer for the first time, ask about their COA status in the first conversation. A buyer who already holds one, and who has imported from Australia before, can usually move quickly. One who has not may need weeks, and a shipment that sails before they are ready will sit at the port accruing charges.
The most common mistakes
"The buyer says it is all handled. Do I still need to check?"
Yes, at least at the level of asking for evidence. The COA is the buyer's responsibility, but the cost of getting it wrong lands on the cargo, and therefore on you if the deal is structured so that you carry the risk until delivery. Ask for the COA number and the tariff codes it covers, confirm that the material you plan to ship matches those codes, and agree in writing who pays for demurrage and storage if the cargo is held. A reliable buyer will not mind the questions.
- Shipping before the buyer's COA is approved.
- Assuming that a COA for one metal covers another.
- Relying on an outdated list of controlled categories.
- Mixing electronic waste or hazardous items into a general scrap container.
- Documents that describe the material differently from one another.
Finding a buyer and getting paid safely
An exporter needs more than a compliant buyer. They need one they can trust with a long, expensive shipment. Listing on ScrapTrade puts your material in front of verified Malaysian buyers directly. Each buyer has passed KYC verification, your listing can carry a GPS-verified video, and a deposit is held in escrow until the buyer confirms the cargo matches the listing. Check today's reference price before you agree a rate.
ScrapTrade does not handle customs, export licensing or freight, and the settlement of the balance on a large shipment is agreed between the parties and their banks. Its role is the verified marketplace layer, described in trading scrap internationally. For other Australian export routes, see Export Scrap Metal: Australia to UAE, and for why a verified online introduction often beats a flight to meet the buyer, The Real Cost of Sourcing Scrap Abroad. If you are choosing between a fixed price and an auction, Fixed Price vs Auction vs Wanted Board explains how. And from the home market side, how scrap auctions work in Australia is a useful comparison.
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List your material freeFrequently asked questions
Why is Malaysia a real destination for Australian scrap?
Malaysia is a significant importer of scrap, particularly non-ferrous metal, and a regional processing hub. Some of that role grew after China tightened its own import rules from 2018, when material was redirected through Malaysia.
What is a SIRIM Certificate of Approval?
An import permit for controlled metal scrap categories, issued by SIRIM QAS under Malaysia's Customs (Prohibition of Imports) Order and required at customs clearance. It is held by the importer, your buyer, not the exporter, but a shipment cannot clear without it.
Does every type of scrap metal need a COA to enter Malaysia?
The original guidelines covered ferrous, copper and aluminium scrap, with tariff codes 7204, 7404 and 7602. The list of controlled categories was expanded in April 2024, so confirm your exact code against the current requirements instead of an older list.
How long does it take a buyer to get set up?
It depends on how quickly the bank guarantee and COA application are processed, so do not leave it until a shipment is booked. With a new buyer, ask about their COA status in the first conversation.
How do I find a buyer and get paid safely?
Malaysian buyers who have passed KYC verification can respond to your listing directly. Ask early whether they hold a COA, because escrow protects the payment but cannot replace the permit that the cargo needs to clear.
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Related reading: Export Scrap Metal: Australia to UAE · The World's Biggest Scrap Metal Markets · The Real Cost of Sourcing Scrap Abroad · Fixed Price vs Auction vs Wanted Board