Metal Scrap is an essential commodity as it enjoys a huge demand for the purposes of both production and recycling. It has a prime importance in the construction industry and the market for scrap metal is increasing. In fact, according to Sunil Barthwal, joint secretary of the India’s Steel Ministry, has claimed that the imports of Metal Scrap in India are likely to double to around 10 million tonnes per annum by as early as 2020.

The metals recycling business in India is disorganised and the government does not give it an industry status. It, at best, may be described as a cottage industry. But it has a lot of potential . The huge amount of metal which is used by the country, if recycled, could generate a lot of profit considering the huge demand for the Metal Scrap consumption. Furthermore higher prices on exporting could also  yield greater financial returns.

Once you have set up a Metal Scrap business you can venture into to the procedure of  import or export metal in and out of India but for this there is a need for the businessman to know the following things:

Import of any form of metallic scrap is subject to the following laws:

  • It should not contain any hazardous/toxic waste
  • The scrap should not contain any radioactive material
  • There should not be  import of any forms of arms, ammunition, or explosive metal.

Import of the following metallic waste and scrap can is free but it is  subject to conditions given below it:

  1. Waste and scrap of cast iron
  2. Other
  3. High-speed steel
  4. Waste and scrap of tinned iron or steel
  5. Turnings, shavings, chips, milling waste, sawdust, fillings, trimmings and stampings, whether or not in bundles.
  6. Re-melting scrap ingots
  7. Copper scrap
  8. Nickel scrap
  9. Brass scrap
  10. Aluminium scrap
  11. Tin scrap
  12. Zinc scrap
  13. Magnesium scrap

The above listed ‘freely’ imported metallic scrap (shredded) will thus be permitted through all port of India on the following conditions:

  1. At the time of the clearance of goods, the importer will have to provide the Customs pre-shipment inspection certificate as per the format to Appendix 2H. This can thus  be obtained from any of the Inspection & Certification agencies which is given in Appendix-2G. This will be a proof of checking of the consignment for radiation level and the scrap does not contain radiation level (gamma and neutron) in excess of natural background.   The certificate shall give the value of background radiation level at that place as also the maximum radiation level on the scrap.
  2. The importer shall also furnish the copy of the contract with the exporter stipulating that the consignment does not contain any radioactively contaminated material in any form.
  3. Import from Hodeidah, Yemen and Bandar Abbas, Iran should be in shredded form only.

If you are importing unshredded or loose form of the metals which is  given in the list above; then you are subject to the following rules:

  1. The imported item is actually a metal scrap/ seconds/ material and it is not the detective as per the internationally accepted measures for such a classification.
  2. A copy of the form specifying that the consignment does not have any arms, ammunitions, shells, cartridges, radioactive, contaminated or any other explosive material in any form which is  either used or is otherwise.
  3. The import of scraps will also be via the following ports only and no exception will be made even in the case of soz or SEZs:
  • Chennai
  • Cochin
  • Ennore
  • JNPT
  • Marmagao
  • Kandla
  • Mumbai
  • New Mangalore
  • Paragraphdip
  • Tuticorin
  • Vishakhapatnam
  • ICD Loni, Ghaziabad
  • Pipava
  • Mundra
  • Kolkata
  • ICD Ludhiana
  • ICD (Dadri) Greater Noida
  • ICD Nagpur
  • ICD Jodhpur
  • ICD Jaipur
  • ICD Udaipur
  • CSF Mulund
  • ICD Kanpur
  • ICD Ahmedabad
  • ICD Pithampur
  • ICD Malanpur

If you want to Apply Import Export Code, you can go with Apply IEC Online.

Related Post: Documents Required for Exports Customs Clearance