Importing Metal Scrap into India: Regulations and Documentation
Metal scrap imports are one of India's largest import categories by volume, but they come with specific environmental, safety, and quality requirements that importers must navigate carefully. This guide covers everything from permissible categories to documentation requirements.
Permissible Scrap Categories
India permits import of: Ferrous scrap (HS 7204) — HMS 1, HMS 2, shredded scrap, cast iron scrap. Non-ferrous scrap — Aluminium (HS 7602), Copper (HS 7404), Brass, Zinc (HS 7902), Lead (HS 7802). Stainless steel scrap. Importers must ensure their scrap category is in the 'Free' list under EXIM policy. Some categories require prior permission from Ministry of Environment.
Radiation Certificate
This is mandatory for all metal scrap imports. The certificate must be issued by an authorized radiation testing agency in the country of origin, confirming that the scrap does not contain radioactive material above permissible limits. Customs will not allow clearance without a valid radiation certificate. Aura verifies radiation certificate authenticity as part of pre-shipment checks.
Pre-Shipment Inspection (PSI)
All metal scrap imports require pre-shipment inspection by an authorized agency (CIMCO, KIPL, SGS, Bureau Veritas etc.). The PSI certificate confirms: quantity, quality/grade, absence of prohibited waste, and radiation-free status. PSI must be done before loading at origin port. The certificate accompanies the shipping documents.
Environmental Compliance
Metal scrap imports must comply with Hazardous Waste Management Rules. Some categories of e-scrap and mixed metal scrap are classified as hazardous waste and require Ministry of Environment (MoEF) permission. Pure category scrap (HMS, aluminium UBC) generally does not need environmental permission. When in doubt, get prior clarification.
Port Handling
Metal scrap is primarily imported through Mundra Port (largest volume in India), JNPT, Chennai, and Vizag. At Mundra, scrap is typically examined under First Check (physical examination of full container). Customs checks for: match between declared grade and actual material, presence of prohibited items, and radiation levels (re-checked by port). Having accurate documentation minimizes re-examination.
Duty Structure
Metal scrap generally attracts lower import duties than finished products to support the recycling industry. HMS scrap: BCD 2.5%, IGST 18%. Aluminium scrap: BCD 2.5%, IGST 18%. Copper scrap: BCD 5%, IGST 18%. However, duty rates change with CBIC notifications — always verify current rates before finalizing contracts. Aura provides pre-clearance duty calculations on request.
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Aura Clearances Services — F-card licensed CHA at Mundra, JNPT, Jaipur ICD & Jodhpur ICD.