India revises scrap metal import regulations

By the end of Q1 2017, unshredded scrap metal imports will have to use designated ports.

October 27, 2016

The Indian Director General of Foreign Trade (DGFT) has released a public notice stating that by the end of the first quarter of 2017 all unshredded scrap metal imports must be shipped to designated ports equipped with radiation detection equipment and container scanners.

A DGFT statement says the following existing designated sea ports in India will be able to accept unshredded scrap until March 31, 2017, at which time they must have radiation portal monitors and container scanners installed and operational: Chennai, Cochin, Ennore, JNPT (Navi Mumbai), Kandla, Mormugao, Mumbai, New Mangalore, Paradip, Tuticorin, Visakhapatnam, Pipavav, Mundra and Kolkata

The DGFT adds that any of the designated sea ports that fail to meet the deadline will no longer be recognized as ports that can accept unshredded scrap metal.

The notice adds that any inland container depots (ICD) can handle the clearance of unshredded scrap metal, provided the metal passes through any of the designated sea ports where radiation detectors and container scanners are in operation and the consignment is subjected to risk based scanning/monitoring per customs.

According to the Business Standard, the present policy is to allow the import of any form of metallic waste or scrap, as long as it doesn't contain any hazardous material, toxic waste, radioactive contaminated waste or scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridges or any other explosive material in any form.

The importer of the material also has to show a copy of the contract with the exporter, which stipulates compliance to this effect.

Also, a preshipment inspection certificate from the authorized agencies must be presented, that the shipment does not contain any of the restricted items and that it was checked for radiation levels and contains none in excess of the natural background. The certificate must give the value of the background radiation level at that place and the level on the scrap.

The Business Standard adds that in the case of waste or scrap of certain metals (brass, copper, iron, nickel, tin, aluminium, zinc, magnesium, steel) coming under specified entries in the ITC (HS) classification, import is permitted in shredded form through all ports without any license. Such freely importable processed metallic scrap is allowed against the presentation of a bank guarantee of Rs 10 lakh (US$15,000) by the importer.

In the event the declaration given by the importer is found to be false and/or incorrect, the importer will be responsible for exporting back the contaminated consignment back to the exporting country at his risk and cost and shall also be liable for enforcement of bond/forfeiture of security amount, in addition to any other action under India law.