pre-shipment inspection certificate for import of scrap made mandatory – kamal nath reviews import policy of scrap and metallic waste

Friday, October 15, 2004


Shri Kamal Nath, Union Minister of Commerce & Industry, held a meeting here this evening to discuss and review the import policy for scrap and metallic waste. The procedure for import of metallic waste and scrap had earlier been tightened with the imposition of port restrictions and a system of 100% inspection by Customs authorities. Indicating a further tightening of norms, Shri Kamal Nath announced that pre-shipment inspection of cargo through approved certifying agencies would be made mandatory for all future consignments of unshredded scrap. Imports of unshredded scrap would be allowed only through designated ports, to be notified by the DGFT shortly. 23 certifying agencies are already recognised for the purpose of pre-shipment inspection, including several which are based abroad. Shipping companies would be advised to load cargo in the vessel only with pre-shipment inspection certificates, wherever necessary, Shri Kamal Nath said.


The Minister further said that the Home Ministry would shortly be issuing an advisory specifying a period within which voluntary disclosure of material of combustible nature in the possession of importing units, if any, would have to be made. This would prevent such material from being abandoned at various places, causing risk to human life and property.


The meeting was attended by representatives of the Department of Steel, Ministry of Shipping, Department of Commerce, Department of Industrial Policy & Promotion (IPP), Ministry of Home Affairs and the Central Board of Excise and Customs (CBEC), Ministry of Finance, besides the Director General of Foreign Trade (DGFT) and representatives of two industry associations, namely, Steel Furnace Association of India and The All India Induction Furnaces Association.


A Public Notice (No. 15) dated 9th September 2004 was issued by the DGFT laying down the revised procedure for import of metallic waste and scrap. These amendments were as follows:



Import of metallic waste and scrap shall be permitted in shredded and compacted form only; however, metallic waste and scrap in unshredded and uncompacted form may be imported through the major ports (covered by the Major Port Trusts Act, 1963) and the Inland Container Depot at Tughalakabad, New Delhi only. The customs authorities shall carry out 100% inspection of such unshredded and uncompacted materials.



"Provided in case of import of metal scrap originating from a country affected by rebellion or war, the exporter shall furnish the following documents to the Customs at the time of clearance of goods".



Notwithstanding anything contained above, the consignments, which have already arrived at the ports and which have left their ports or origin will be subject to 100% inspection by the customs authorities.