Extra conditions for metal scrap import

Source: Business Standard, Oct 16, 2016

The Director General of Foreign Trade (DGFT) has restricted the import of unshredded metallic scrap through only designated ports, having radiation portal monitors and container scanners, and the consignment is so examined in line with Customs protocol. However, any Inland Container Depot (ICD) can handle clearance of unshredded metallic scrap, provided this passes through any of the designated sea ports or any new ports to be notified from time to time,

The present policy is to allow 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 has to show a copy of the contract with the exporter which stipulates compliance to this effect.

Also, a Pre-shipment Inspection Certificate from the authorised agencies must be presented, that the consignment does not contain any of these items mentioned earlier 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.

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 i.e. in shredded, cut sheared, rotor sheared, briquetted, baled, bundles, turnings, borings, granule or nodule form is allowed against the presentation of a bank guarantee of Rs 10 lakh by the importer. Also subject to a Pre-shipment Inspection Certificate from the authorised agencies regarding the radiation levels, etc. The consignment so imported at the designated ports has to compulsorily pass through the scanner or radiological detection equipment installed at these ports before being cleared by the Customs, even if the containers are destined for an ICD.

Import of such waste or scrap in unshredded form, meeting international standards for such classification, was permitted only through 14 specified ports and 12 specified ICDs. This condition now stands modified. Henceforth, any sea port to be designated for import of unshredded metallic scrap will be required to install radiation portal monitors and container scanner with adequate security. Any port having done so must approach the jurisdictional Customs for inspection and certification. The latter may grant this on receipt of certification from the Atomic Energy Regulatory Board. On the Cusotms clearance, DGFT will notify such a port as a designated one for import of unshredded scrap.

The presently designated sea ports – Chennai, Cochin, Ennore, JNPT (Navi Mumbai), Kandla, Mormugao, Mumbai, New Mangalore, Paradip, Tuticorin, Visakhapatnam, Pipavav, Mundra and Kolkata – will be allowed to import unshredded scrap till end-March 2017. By which time they must install and operationalise radiation portal monitors and container scanner. Ports failing to meet the deadline will be derecognised for the purpose of import of unshredded metallic scrap from April 1.

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