DGFT Notice Expands Scrap Import Ports and PSIC Exemption

Introduction:

The Directorate General of Foreign Trade (DGFT) issued Public Notice No. 43/2023 on February 14, 2024, introducing significant amendments to the Handbook of Procedures, 2023. These changes aim to facilitate the import of metallic waste and scrap by expanding the designated sea ports and exempting certain consignments from Pre-Shipment Inspection Certificate (PSIC) requirements.

Amendment Details:

In exercise of its powers under the Foreign Trade Policy (FTP) 2023, the DGFT amended Para 2.51 of the Handbook of Procedures (HBP), 2023. Specifically, Para 2.51 (d)(iv) and 2.51 (d)(v)(iv) were amended to include Adani Gangavaram Port in the list of designated sea ports for scrap import and to exempt PSIC for metallic waste and scrap from safe countries/regions.

Designated Ports for Scrap Import:

Following the amendment, import of scrap will now take place through a total of 19 designated ports. These include Chennai, Cochin, Ennore, JNPT, Kandla, Mormugao, Mumbai, New Mangalore, Paradip, Tuticorin, Vishakhapatnam, Pipava, Mundra, Kolkata, Krishnapatnam, Kattupalli, Hazira, Kamarajar, and Adani Gangavaram Port.

PSIC Exemption Criteria:

The amended Para 2.51 (d)(v)(iv) of HBP exempts metallic waste and scrap from safe countries/regions – USA, UK, Canada, New Zealand, Australia, and the EU – from PSIC requirements if imported through 11 designated ports. These ports include Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra, Kattupalli, Hazira, Kamarajar, and Adani Gangavaram Port. However, consignments from these countries/regions must be accompanied by a certificate from the supplier/scrap yard authority confirming the absence of radioactive materials/explosives.

Effect of the Public Notice:

This Public Notice marks a significant change in the import procedures for metallic waste and scrap. By expanding the number of designated ports and exempting PSIC for certain consignments, the DGFT aims to streamline the import process and facilitate trade in this sector. The amendment increases the total number of sea ports for scrap import from 18 to 19 and PSIC exempted sea ports from 10 to 11 under Para 2.51 of HBP, 2023.