How to import metal scrap into India

Licences and registrations you need

• IEC

  An Importer-Exporter Code from DGFT is compulsory for imports, apart from the few exempted categories in HBP para 2.07.

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• GST registration

  IGST at 18% is paid at import on all the scrap headings covered here. The importer needs a GSTIN to claim input tax credit of that IGST. Confirm registration needs for your business model with a GST practitioner.

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• SPCB consent / HOWM rules registration (Form 5/6 etc. as applicable for metal scrap in Schedule VI / Part D)

  Metal scrap is imported as 'other waste' under Part D of Schedule III of the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. No MoEFCC permission is needed, which is why Form 5 does not apply. Instead the importer gives Customs Form 6 (movement document) with: (i) for actual users, valid consents to operate under the Water and Air Acts plus authorisation under these Rules from the State Pollution Control Board (SPCB); (ii) for traders importing on behalf of actual users, a one-time SPCB authorisation in Form 7; (iii) a chemical analysis report; and (iv) an acknowledged copy of last year's annual return to the SPCB (Form 4). Schedule VI lists wastes whose import is prohibited. We could not retrieve the current consolidated Part D list to confirm the exact entry for each metal, so check it against the latest MoEFCC text.

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• RCMC (if relevant)

  An RCMC is issued by an Export Promotion Council to exporters (HBP para 2.79). It is not listed in para 2.51 or in HOWM Schedule VIII as a requirement for importing scrap. It matters only if you claim FTP export benefits.

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• Contract clause, supplier certificate and genuineness condition

  The import contract must state that the consignment contains no radioactive-contaminated material, arms, ammunition, mines, shells, cartridges or explosives. The goods must genuinely be waste, scrap, seconds or defectives by internationally accepted parameters. Safe-country shipments relying on the PSIC exemption need the supplier or scrap-yard certificate. EOUs and SEZs get no exception from the designated-port rule.

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PSIC: pre-shipment inspection by a DGFT-recognised agency (PSIA)

What it is

A Pre-Shipment Inspection Certificate (format: Appendix 2H) is issued in the country of export by a DGFT-recognised Pre-Shipment Inspection Agency (PSIA). It certifies that the consignment was checked for radiation and does not exceed natural background levels (gamma and neutron), recording both the background and the maximum reading. For unshredded scrap it also certifies that the consignment contains no arms, ammunition, mines, shells, cartridges or other explosives. The PSIA generates the PSIC online on the DGFT portal and uploads photo or video evidence of the inspection, container stuffing and sealing.

Who needs it

Every import consignment of metallic waste and scrap needs a PSIC from the country of origin (HBP 2023 para 2.51(d)(v)(iv), as amended by Public Notice 35/2026-27). Exception: scrap, shredded or unshredded, originating in the USA, UK, Canada, New Zealand, Australia or the EU does not need a PSIC if three conditions are met: (a) a supplier or scrap-yard certificate states it contains no radioactive materials or explosives; (b) it enters through Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra, Kattupalli, Hazira, Kamarajar or Adani Gangavaram and passes the mandatory radiation and explosive checks there; and (c) it is not a trans-shipment through those countries. The exemption also applies when goods are cleared at an Inland Container Depot (ICD) after entering through one of those ports, provided proof of compliance is shown at the ICD.

Validity

HBP 2023 does not state a separate validity period for a PSIC. It is issued per consignment after inspection and container sealing, so treat it as tied to that shipment. PSIAs themselves are recognised for three years (HBP para 2.52(c)).

Radiation check

The PSIC must record background and maximum radiation (gamma and neutron) levels. At designated Indian sea ports, radiation portal monitors and container scanners are mandatory, and a port is designated only after Customs clearance based on AERB certification (HBP para 2.51(d)(v)(i)).

Exemptions

There is no general exemption for shredded scrap: shredded scrap also needs a PSIC under para 2.51(b), although it may enter through any port. The only PSIC exemption is the safe-country route described above, which covers both shredded and unshredded scrap.

Approved agencies

Appendix 2G of the FTP 2023 Appendices lists the recognised PSIAs. DGFT updates it by Public Notice (most recently PN 08/2026-27 of 8 May 2026, which added 14 agencies, as reported by secondary sources). Check the live 'Approved PSIA List' on the DGFT Pre-Shipment Inspection page rather than relying on an old copy, because recognitions lapse after three years if not renewed.

Which ports accept metal scrap

Shredded scrap listed in HBP para 2.51(a) may come through any port in India, with a PSIC. Unshredded, compressed or loose scrap may come only through designated entry sea ports, with no exception for EOUs or SEZs. A sea port is designated only after it installs radiation portal monitors and container scanners, Customs inspects it, AERB certifies it and DGFT notifies it. Any ICD may clear unshredded scrap if the container first passed through a designated sea port where those systems operate and Customs' risk-based scanning applies. Imports from Hodeidah (Yemen) and Bandar Abbas (Iran) must be shredded only.

• Chennai
• Cochin
• Ennore
• JNPT
• Kandla
• Mormugao
• Mumbai
• New Mangalore
• Paradip
• Tuticorin
• Vishakhapatnam
• Pipava
• Mundra
• Kolkata
• Krishnapatnam
• Kattupalli
• Hazira
• Kamarajar
• Adani Gangavaram

The 18-port list is copied exactly from the official HBP 2023 PDF, including DGFT's spellings 'Vishakhapatnam' and 'Pipava'. We did not read PN 43/2023 itself, but PN 35/2026-27 (read from a scanned copy) lists Adani Gangavaram among the sea ports for the PSIC exemption. The HBP text we read may predate other amendments, so confirm against the latest HBP on dgft.gov.in. The PSIC-exempt subset of 11 ports is in the psic section.

HBP 2023 para 2.51(d)(iv) (18 ports, as in the DGFT HBP 2023 PDF). Adani Gangavaram is added per DGFT Public Notice 43/2023 dated 14.02.2024 (secondary report) and is named as a designated sea port in DGFT Public Notice 35/2026-27 dated 21.10.2026. Source

Customs duty on metal scrap

SWS is charged as a percentage of BCD. Rates checked on 29 October 2026; exemptions have end dates — confirm on the date of import.

Landed cost and duty estimator

Enter your grade, price and freight to see duty, IGST and the cost per tonne at your yard.

Top risks in scrap import — and how to manage them

• Radioactive contamination

  Scrap must not exceed natural background radiation. Consignments are screened by portal monitors and container scanners at designated ports. Contaminated cargo breaches HBP para 2.51 and can lead to penal action under the Foreign Trade (Development and Regulation) Act against both importer and exporter.

• Explosives and ordnance in scrap

  Arms, ammunition, mines, shells and live or used cartridges are prohibited in any metallic scrap. Unshredded scrap carries the highest risk, which is why it is limited to designated ports with scanners and the PSIC must certify that none are present.

• Misdeclaration of grade or tariff line

  Duty depends on the exact 8-digit line. For example, 7404 00 12/19/22 are Free while other 7404 lines are not. Importer and exporter are jointly liable for any mismatch with the PSIC declaration (HBP para 2.53).

• Hazardous-waste reclassification

  Scrap that is contaminated (oil, coatings, batteries) or does not match a Part D entry may be treated as hazardous waste, which needs MoEFCC permission or is prohibited (Schedule VI). Lead-bearing scrap is a particular concern.

• Price volatility

  Non-ferrous scrap is usually priced off LME benchmarks, so prices can move sharply between contract and arrival. Agree the pricing basis and settlement date in the contract.

• Wrong port or missing PSIC

  Unshredded scrap landed at a non-designated port, or any consignment without a valid PSIC or exemption, cannot be cleared as declared. Holds like this lead to demurrage and container detention charges.

• Policy changes

  Duty exemptions carry end dates (ferrous scrap: 31.03.2028), and DGFT amends port and PSIA lists by Public Notice. Re-check before each contract.