Metal Material Circular Market

Scrap Import Quality Standards in India

India regulates scrap imports to keep out radioactive, explosive and hazardous material. Imported metallic scrap is generally subject to the applicable Pre-Shipment Inspection Certificate (PSIC) requirements unless a specified exemption applies, and unshredded metallic scrap may enter only through designated ports with radiation detection.

Plastic and paper scrap are assessed against the import conditions for their own categories and ITC(HS) codes. Importers also need an Import Export Code from DGFT, and specified metallic and other wastes can fall under the Hazardous and Other Wastes Rules administered by MoEFCC. BIS requirements apply to specified goods rather than to scrap generally.

Requirement Authority What it checks or allows
Pre-Shipment Inspection Certificate DGFT-recognised inspection agency at origin Freedom from radioactive contamination, explosives, arms and ammunition, where a PSIC is required
Radiation screening Inspection agency at origin; portal monitors at designated ports Radiation readings of background, scrap and container
Designated ports DGFT, under the Handbook of Procedures Entry of unshredded metallic scrap restricted to listed ports
Import Export Code DGFT Permission to import commercially
Hazardous and Other Wastes Rules MoEFCC Schedule entry, documents, authorisation and consent for specified metallic and other wastes
Pollution control consent CPCB or the State Pollution Control Board Handling and processing of the imported material

What Are the Quality Standards for Importing Scrap into India?

Scrap imported into India passes through three kinds of control: a pre-shipment inspection confirming the consignment is free of radioactive and hazardous material, entry of unshredded scrap restricted to designated ports with radiation screening, and the Hazardous and Other Wastes Rules where a schedule entry applies. The aim is to keep unsafe material out while letting recycling feedstock in.

Four authorities divide the work. DGFT sets import policy, the inspection requirement and the port list, as covered in India’s scrap import policy. BIS sets product standards and quality control orders. MoEFCC and the pollution control boards administer the hazardous waste rules and consents. Customs assesses, examines and clears at the port.

The requirements below apply to metal scrap. Plastic and paper scrap are assessed against the import conditions for their own categories and ITC(HS) codes, rather than under the metallic scrap inspection framework.

What Is a Pre-Shipment Inspection Certificate (PSIC) for Scrap?

A PSIC is issued by a DGFT-recognised inspection agency in the exporting country, confirming that a scrap consignment is free of radioactive contamination, explosives, arms, ammunition, shells and cartridges. It is issued before loading, and customs will generally not clear metallic scrap without it or a recognised exemption.

The inspection follows a set sequence. The exporter submits the commercial invoice, packing list and supporting documents. The agency carries out a field inspection covering material quality against recognised specifications, radiation readings and weight verification, then supervises container loading. The certificate issues once the applicable requirements are met and the final shipping documents have been reviewed.

Quality is assessed against internationally recognised scrap classification specifications, which is why the trade grades covered in scrap metal grading appear on inspection paperwork. Use the current DGFT list of recognised agencies rather than an agency’s own claim.

How Is Imported Scrap Checked for Radiation?

Imported metallic scrap undergoes radiation screening at two stages: before shipment and again when the consignment arrives in India. The checks are designed to detect radioactive sources that may have entered the scrap stream before they reach a recycling or melting facility.

  • Pre-shipment inspection: An authorised inspection agency checks the radiation level of the surrounding area, the scrap and the container before issuing the Pre-Shipment Inspection Certificate (PSIC).
  • Screening at Indian ports: On arrival, consignments are screened using radiation portal monitors and container scanners at designated ports.
  • Why the check matters: Sealed radioactive sources from equipment such as industrial gauges and medical devices can accidentally enter scrap. If one reaches a melting furnace, it can contaminate the furnace, resulting metal and surrounding facility.
  • Designated ports: Unshredded metallic scrap must enter through ports specified in the Handbook of Procedures, while shredded scrap is not restricted to those ports.
  • PSIC exemptions: Scrap from specified countries and regions is exempt from the PSIC requirement only when all applicable conditions are met. These include a supplier certificate, entry through a port listed for the exemption with mandatory radiation and explosive checks, and no trans-shipment. DGFT Public Notice 35/2026-27 of 21 October 2026 sets out the current conditions.
  • Verify current requirements: Both the designated-port and PSIC-exemption lists have been amended over time, so importers should check the latest entries in the Handbook of Procedures and DGFT public notices before arranging shipment.

What BIS Standards Apply to Imported Scrap?

BIS requirements depend on the specific material and the Quality Control Order (QCO) that covers it. The current position differs between steel and non-ferrous raw materials.

Material BIS position Import implication
Steel QCOs remain in force Applies to specified steel products, not scrap generally
Aluminium Standard pending notification No mandatory requirement from the draft
Specified non-ferrous metal products Several QCOs withdrawn in November 2025 Not a blanket exemption for scrap or other products made from those metals; check the exact product description and applicable order
Other covered goods BIS certification may apply Check the specific QCO before import

Aluminium Scrap Standard Is Still Pending

The aluminium scrap standard, “Aluminium & Aluminium Alloy Scrap – Requirements & Conditions of Delivery”, was circulated as a BIS draft (MTD 7 (20323)). No notified Indian Standard under that title was found in BIS records checked in October 2026. In July 2026, the Aluminium Association of India urged the government to notify it, citing aluminium scrap imports of 2,028 KTPA in FY26.

A draft standard has no mandatory effect until it is formally notified. Importers should therefore distinguish between a published draft and an enforceable BIS requirement when assessing compliance.

Check the Product Scope

The Steel and Steel Products (Quality Control) Order covers specified products such as bars, sheets, billets and coated products. This means an importer should identify the exact product description and applicable order before assuming that a BIS requirement applies to a scrap shipment. The same check applies to non-ferrous goods, because the November 2025 withdrawals covered specified products, not every product made from those metals.

For overseas manufacturers supplying goods that fall within a BIS order, the Foreign Manufacturers Certification Scheme (FMCS) provides a route to obtain a BIS licence and use the BIS Standard Mark.

What Are the DGFT Rules for Importing Scrap?

DGFT governs whether scrap may be imported, by whom, and through which ports. An Import Export Code is mandatory for any commercial importer. Beyond that the conditions attach to the consignment: inspection certification where required, designated port entry for unshredded scrap, and conformity with recognised scrap classification specifications.

Import policy is set in the ITC(HS) schedule and differs by heading. Most metallic scrap headings are importable subject to those conditions rather than requiring a consignment licence. The entry for the specific heading governs, and entries are amended by public notice, so check the current one.

Duty is assessed alongside these conditions without being one of them. The rate position for heading 7204 is covered in ferrous scrap import duty.

Which Environmental Clearances Are Needed to Import Scrap?

The Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, as amended, may apply to specified imported metallic wastes and other waste categories. Many metal scrap entries fall in Part D of Schedule III, importable by actual users or authorised traders without MoEFCC permission, subject to Schedule VIII documents. Importers should verify the applicable schedule entry and meet its documentation, authorisation and consent requirements.

Processing consent is separate from import permission. A facility handling imported scrap generally requires consent from the State Pollution Control Board, or registration with CPCB where the category calls for it, attaching to the site and its capacity rather than to the consignment. A consignment can therefore clear customs and still leave the importer unable to process it lawfully.

What Documents Are Required to Import Scrap into India?

The document set divides between registrations an importer holds once and papers travelling with each consignment. Customs examines both at clearance, and a gap in either is a more common reason for a hold at port than any dispute about the material itself.

  • Held by the importer: Import Export Code, GST registration, pollution control board consent where the category requires it, and an import licence where the ITC(HS) entry calls for one.
  • Travelling with the shipment: commercial invoice, packing list, bill of lading, certificate of origin, insurance certificate, the PSIC or applicable exemption documentation, and the radiation-free certificate.
  • Filed at clearance: the bill of entry, followed by valuation and duty assessment, document examination and any physical inspection.

Records are kept after clearance for audit, and non-compliance carries penalties including fines and confiscation. Where a PSIC is required, the inspection agency issues it only after the required inspection, and Customs clears the consignment against a valid certificate or the conditions of an applicable exemption.

Conclusion

The requirements form a sequence rather than a list. Registrations and site consents are established once. The inspection and radiation check happen at origin for each consignment that requires a PSIC. Port entry and customs examination follow on arrival, and BIS conformity applies where an order covers the specific goods.

BIS is the point to verify against a primary source. Published summaries describe quality control orders as a general gate on imported scrap, whereas the steel order covers finished products, several orders covering specified non-ferrous metal products were withdrawn in November 2025, and the aluminium scrap standard remains a draft.

FAQs

Is a PSIC required for plastic and paper scrap too? 

The PSIC provisions in the DGFT Handbook of Procedures apply to metallic waste and scrap. Plastic and paper scrap are assessed against the import conditions for their own categories and ITC(HS) codes, and other rules, including the Hazardous and Other Wastes Rules, may apply. The importer should check the current entry for the specific category before contracting.

 Who can issue a PSIC for scrap shipped to India? 

An inspection agency recognised by DGFT and operating in the exporting country. Verify recognition against the current DGFT list rather than an agency’s own claim.

 What is the FMCS licence? 

The Foreign Manufacturers Certification Scheme allows a manufacturer outside India to obtain BIS certification and apply the BIS mark to goods covered by an Indian standard.

 Which ports can metal scrap be imported through? 

Unshredded metallic scrap can enter only through ports designated in the DGFT Handbook of Procedures, which must have radiation portal monitors and container scanners. Shredded scrap is not restricted to those ports. Both lists have been amended by public notice, most recently in October 2026, so importers should verify the current entries.

What happens if a consignment fails inspection at origin? 

Where a PSIC is required, the inspection agency issues the certificate only after the required inspection, and Customs clears metallic scrap against a valid PSIC or an applicable exemption. Without either, the consignment cannot be cleared in India. The outcome for other scrap categories depends on their own import conditions.

 Does every type of scrap need a DGFT import licence? 

Not generally. Most metallic scrap headings are importable subject to inspection and port conditions, but the ITC(HS) entry for the specific heading governs.

How do domestic scrapping facilities document material for buyers? 

RVSFs registered under MoRTH’s 2021 scrapping rules can use MMCM’s AutoLoop to record dismantling and AIS-129 checks per vehicle, giving mills documented domestic material.

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