Pre-Shipment Inspection FAQ\'s

Q: Where can one find out provisions related to import of metal scrap to India?

A: It is advised to refer the “Hand Book of Procedure Vol-1” for Imports & Exports- published by Directorate General of Foreign Trade, Ministry of Commerce, Government of India. It is advised to refer the amendments to it published as Public Notices/ Notifications and Circulars. Section 2.32 in HBP lists majority of provisions for metal scrap.

Q: Is it possible to find the provisions related to import of metal scrap to India on Internet?

A: The URL is http://dgft.delhi.nic.in

Q: What are the restrictions related to type of metal scrap is allowed for import to India?

A: Import of any form of metallic waste, scrap is allowed subject to the condition that it does not contain hazardous, toxic waste, radioactive contaminated waste / scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridge or any other explosive material in any form either used or otherwise.

Q: What can be the action if the scrap contains explosives/ toxic waste/ radioactive material/ arms or ammunitions?

A: There are stringent actions possible – criminal proceedings including actions related to National Security. The exporter is also banned permanently to export to India

Q: What different types of metal scrap are allowed freely for export to India?

A:

EXIM Code Item
720410 00 Waste and scrap of cast iron
72042190 Other
72042920 Of High speed steel
72042990 Other
72043000 Waste and scrap of tinned iron or steel
72044100 Turnings, shavings, chips, milling waste, saw dust, fillings, trimmings and stampings, whether or not in bundles
72044900 Other
72045000 Re-melting scrap ingots
74040010 Copper scrap
74040022 Brass scrap
75030010 Nickel scrap
76020010 Aluminum scrap
79020010 Zinc scrap
80020010 Tin scrap
81042010 Magnesium scrap

Q: What are the provisions for types of metallic waste and scrap other than above?

A: Import of other kinds of metallic waste and scrap is allowed in terms of conditions of ITC (HS).

Q: What are the documents to be furnished by the Importer of metal scrap for Custom clearance?

A: a) Pre-shipment inspection certificate as per the format in Annexure-I to Appendix 5 from any Inspection & Certification agencies given in Appendix-5 to the effect that:

  1. The consignment does not contain any type of arms, ammunition, mines, shells, cartridges, radioactive, contaminated or any other explosive material in any form either used or otherwise
  2. The imported item (s) is actually a metallic waste/ scrap/ seconds/ defective as per the internationally accepted parameters for such a classification.

b) Copy of the contract between the importer and the exporter stipulating that the consignment does not contain any type of arms, ammunition, mines, shells, cartridges, radioactive contaminated, or any other explosive material in any form either used or otherwise.

Q: What is Appendix-5 as mentioned above?

A: Appendix-5 is a List of “Inspection Agencies” who can carry out Inspection and Certification known as “Pre-Shipment Inspection” or “PSI” or “PSI-C”. Ravi Energie Inc.  is one of the Inspection Agency enlisted in Appendix-5 of Hand Book of Procedure.

Q: What are the provisions for clearance of metallic waste and scrap imported without a Pre-shipment Inspection Certificate in the prescribed form in India?

A:Imported metal scrap in Unshredded, compressed or loose form not accompanied by the prescribed pre-shipment inspection certificate will be subject to 100% examination apart from stringent penal action for violation of provisions of the FTP. The examination may be done in the presence of police authorities, if considered necessary by the Commissioner, at the risk and cost of the importer. (Listed in para 10(6) of CUSTOMS MANUAL, 2011 – Central Board of Excise & Customs, Department of Revenue, Ministry of Finance) - URL is http://www.cbec.gov.in/cs_manual2011.pdf 

Q: Which are the Ports where Custom clearance is done?

A: Shredded form: Import of metallic waste and scrap mentioned above (listed in para 2.32.2 of HBP Vol. 1) in shredded form is permitted through all ports of India.
Un-shredded form: Import of scrap is allowed only through following designated ports and no exceptions are allowed even in case of EOUs, SEZs:-
Chennai, Cochin, Ennore, JNPT, Kandla, Mormugao, Mumbai, New Mangalore, Paradip, Tuticorin, Vishakhapatnam, ICD Loni, Ghaziabad, Pipava, Mundra, Kolkata, ICD Ludhiana, ICD Dadri (Greater Noida), ICD Nagpur, ICD Jodhpur, ICD Jaipur, ICD Udaipur, CFS Mulund, ICD Kanpur, ICD Ahmedabad, ICD Pitampur and ICD Malanpur”.

Q: Is High Sea sale possible for metallic scrap?

A: There is no restriction so far imposed on “High Sea Sale” as a trade procedure

Q: Which are the Professional Bodies or Associations active for improvements in the field of metal recycling?
A: BIR- Bureau International Recycling- URL is www.bir.org
ISRI- Institute of Scrap Recycling Industries, Inc. – USA URL is www.isri.org

Q: How is metal scrap classified?
A: Internationally accepted code is ISRI Code and it can be referred to on ISRI website http://www.isri.org

Q: Is mixed metal scrap allowed for Import to India?
A: As of today there are no restrictions. However quantitative details or percentage-wise classification is required

Q: Are the machine components or parts allowed as metal scrap for imports in India?
A: No. But the legal opinion with us is- if the rejected or damaged parts which cannot be used as machines or machine parts and can only be recycled (e.g. melting) are to be allowed to be imported to India. 

Q: Are defective or secondary metals/ secondary steels allowed for import to India?
A: The wordings in Section 2.32 of HBP Vol. 1 are: “Import of any form of metallic waste, scrap will be subject to the condition that it will not contain hazardous, toxic waste, radioactive contaminated waste / scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridge or any other explosive material in any form either used or otherwise”.  Hence, secondary steels/ metals are allowed upon the Inspection and Certification by an Agency enlisted in Appendix-5 of HBP Vol-1 like Ravi Energie Inc. There are separate Customs Notifications for Secondary Metals which are advised to be referred to.

Q: What are the prices of metal scrap considered for valuation purpose by Customs in India?
A: For some items (like nickel and other), there are notifications published by Government of India from time to time which are referred to for the purpose of calculation of Custom Duty.

Q: Can the composition of scrap of metallic alloy be asked for by the Customs in India?
A: Yes as the composition has some relation to the prices, Customs can ask for the details or analysis.

Q: Is metal waste with other non-metallic items allowed for imports to India?
A: Yes but it is for certain recyclers who have other permissions like those related to Pollution.

Q: What are the policies and procedures for seconds and defective, rags, PET bottles / waste and ships?
A: Import policy for seconds and defective, rags, PET bottles / waste, and ships is given in ITC (HS) published by Ministry of Commerce, Government of India.

Q: Does the Pre Shipment Inspection charge needs to be added to the assessable value of goods?
A: Yes, the customs Circular No. 936/26/2010 –CX mentions that the After-sale Service and Pre-delivery Inspection charges were liable to be included in the assessable value under Section 4 of the Central Excise Act 1944. Please click here to read the Customs Circular.

Contents published on this website have no legal sanctity and are for general reference only. Visitors to this website are required to refer to the official documents published by respective authorities to ascertain the facts.

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