India's existing pre-shipment inspection requirement for imported metal scrap remains in force, while the government reviews a representation from the recycling industry seeking changes to the current system.
The Directorate General of Foreign Trade (DGFT) has clarified that no decision has been taken to discontinue the pre-shipment inspection requirement.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: Government reviews a proposal to change the pre-shipment inspection framework for imported metal scrap.
Location: India and international scrap-exporting markets.
Authority/Organisation: Directorate General of Foreign Trade.
Action Taken: Industry representation is being examined; no decision has been taken to discontinue pre-shipment inspection.
Impact: Importers and recyclers continue to operate under the existing PSIC requirement while possible compliance changes are considered.
Under the existing framework, imported metal scrap is subject to inspection and certification requirements intended to help identify non-compliant or potentially hazardous material before it enters India's supply chain.
The recycling industry has proposed shifting greater emphasis towards inspection and screening at Indian ports. The proposal argues that port-based infrastructure, including scanning and radiation-monitoring systems, could help address difficulties caused by limited availability of authorised inspection agencies in some source countries.
The government is considering the representation, but the existing pre-shipment inspection requirement continues to apply unless and until the applicable rules are changed.
Editorial Analysis
Why This Matters
India has a large recycling and secondary-metal industry that depends on a steady supply of recyclable scrap. Changes to inspection procedures can affect import compliance, shipment processing, documentation and logistics costs. At the same time, pre-shipment checks serve a regulatory and safety purpose by helping identify problematic consignments before they are shipped. The current policy discussion is therefore focused on balancing trade facilitation, inspection capacity and safety safeguards.
The DGFT has also recently revised the operational timeline for issuing Pre-Shipment Inspection Certificates (PSICs). Under the September 16 trade notice, recognised inspection agencies are required to generate and issue the certificate within two days of inspection, while a one-time relaxation was provided for certain backlog certificates.
