Learn / Export Scrap Metal: Australia to Malaysia

How to Export Scrap Metal from Australia to Malaysia

Malaysia has quietly become one of the world's biggest scrap import markets. Here's what's involved on both ends, including the permit system that decides whether your shipment clears customs at all.

Why This Trade Route Exists

Malaysia absorbs roughly 11% of the world's traded scrap volume, making it the third-largest destination globally, much of it picked up after China tightened what qualifies for entry into its own market. Malaysia's own processing and manufacturing base has kept expanding to match, making it a genuine, growing buyer rather than a temporary overflow market.

On the Australia Side

1. Check whether your material needs an export licence

Depending on the type and quantity of scrap you're shipping, Australian export controls may require a licence before the shipment can leave. Confirm this early, it affects your timeline more than any other step.

2. Prepare accurate customs declarations

Metal type, value, and destination all need to be declared correctly. Errors here are one of the most common causes of shipment delays.

3. Meet the minimum shipment thresholds

Export runs typically make sense from around 1 to 5 tonnes depending on the metal, with a standard container holding 20 to 25 tonnes. Plan your load size around what's actually economical to ship.

On the Malaysia Side

1. Confirm your material's HS code is COA-controlled

Malaysia's Certificate of Approval requirement originally covered ferrous scrap (HS 7204), copper scrap (7404), and aluminium scrap (7602) from January 2022, and was expanded to further categories in April 2024. Check your specific HS code against the current list.

2. Your buyer needs a SIRIM Certificate of Approval (COA)

Administered by SIRIM under Malaysia's Ministry of Investment, Trade and Industry (MITI), the COA is required for customs clearance under the Customs (Prohibition of Imports) Order. It's applied for online, and your buyer needs it in place before the shipment arrives, not after.

3. Factor in the bank guarantee requirement

SIRIM requires a bank guarantee from the applicant as security for compliance with its import guidelines. This is a lead-time item for your buyer to sort out, worth confirming is in place before you commit to a shipping date.

The COA sits with your buyer, not you, but a deal can still fall through late if it isn't sorted out in advance. Confirm your buyer's COA status as part of agreeing terms, not after the container is already booked. Rules and controlled-category lists change; confirm current requirements before committing to a shipment rather than relying on any single guide, including this one.

Finding a Buyer and Getting Paid Safely

Getting your buyer's SIRIM paperwork sorted is necessary, but it's not the same as knowing they're a legitimate counterparty who'll actually pay. ScrapTrade verifies accounts on both sides and holds payment in escrow until delivery is confirmed, which customs clearance alone doesn't cover. Check today's reference prices before you agree to a rate.

Frequently Asked Questions

Why is Malaysia a real destination for Australian scrap?

Malaysia is the world's third-largest scrap metal destination by volume, absorbing significant demand that shifted away from China after China tightened its own import rules. It continues to expand as a regional processing and manufacturing hub in Southeast Asia in its own right.

What exactly is a SIRIM Certificate of Approval?

It's an import permit for controlled metal scrap categories, issued by SIRIM QAS under Malaysia's Customs (Prohibition of Imports) Order, and it's the document actually required at the point of customs clearance. It's held by the importer (your buyer), not the exporter, but a shipment can't clear without it.

Does every type of scrap metal need a COA to enter Malaysia?

The original 2022 guidelines covered ferrous, copper, and aluminium scrap specifically. The list of controlled categories was expanded in April 2024, so confirm your exact HS code against the current requirements rather than assuming based on an older list.

How long does it take a buyer to get set up to import from Australia?

It depends on how quickly the bank guarantee and COA application are processed, this isn't something to leave until a shipment is already booked. If you're working with a buyer for the first time, confirm their COA status early in the conversation.

How do I find a buyer and get paid safely on a deal like this?

Listing on ScrapTrade puts your material in front of verified Malaysian buyers directly, with escrow holding payment until delivery is confirmed, which matters more on an international deal than almost anywhere else. Check today's reference prices before you agree to a rate.

Ready to List Your Material?

Reach verified buyers in Malaysia and beyond, with escrow protecting every deal.

Get Started Free