Indian DGFT announces relaxation on scrap metal import regulation

Author: Paul Ploumis21 May 2015 Last updated at 02:29:02 GMT

NEW DELHI (Scrap Monster): India’s Directorate General of Foreign Trade (DGFT) has announced certain relaxations to the earlier announced regulations on scrap metal imports into the country. The revised rule is on the back of concerns raised by several recycling bodies including Institute of Scrap Recycling Industries (ISRI), Bureau of International Recycling (BIR) and the Metal Recycling Association of India (MRAI).

The metal scrap import regulations will come into effect from July 1st. Current pre-shipment inspection certificates are valid only until June 30th, 2015. All existing certifications will go invalid by that time. According to DGFT, pre-shipment inspection agencies need to reapply for certification by an Inter-Ministerial Committee on or before 7th June. The status will be renewed once in every three years, DGFT public notice stated.

As per the stringent scrap import policy announced by Indian authorities in April this year, the Pre-Shipment Inspection Agency (PSIA) in the source country was required to make a video of duration between 3 to 5 minutes covering the inspection process carried out at containers. However, May 18 notice states that photos would be acceptable as an alternative.

The DGFT is believed to have come ahead with the new regulations after scrap shipments into the country were found containing radioactive and explosive materials in it. The Indian administrators stated that the country’s security is their top priority, while admitting that the new rules may lead to lesser scrap imports into India.

Meantime, MRAI has sought for several concessions in the proposed rule. The recycling association has urged to allow self-certification of scrap yards. In addition they also called upon DGFT to exempt shredded scrap from inspection certification requirement.