Posted on 06/07/2015 in category Legislation

India: BIR welcomes that DGFT allows certain scrap yards to self-certify processed metallic scrap for export through designated Customs Ports

The Bureau of International Recycling and a number of national trade associations including ISRI from the USA and MRAI from India had made representation to various Indian government ministries for particularly equipped scrap yards to be able to self-certify the quality and safety of their processed metallic scrap. This has resulted in the new DGFT Public Notice No. 23/2015-20 (open link) which gives a detailed explanation of the new rules. We give a brief explanation of the self-certification process below.

The categories of processed metallic scrap include: (i) Shredded, Cut Sheared, Rotor Sheared; (ii) Briquetted, Baled, Bundles; and (iii) Turnings, Borings, Granules, and Nodules.

The exporting scrap company has to complete its own 'Pre-Shipment Inspection Certificate' and the importer has to complete a 'Self-Declaration cum Legal Undertaking' and provide a bank guarantee. Furthermore the importer has to provide a copy of the contract with the exporter giving certain guarantees and agreeing to take-back in case any explosive or radioactive material is found upon arrival in India. The notice provides for penalties if the declaration given by the importer is found to be false or incorrect.

The scrap shipments have to pass through the Scanners/ Radiological Detection Equipment facilities at the designated Customs Ports at either: Cochin; Ennore; Goa; Haldia; Jawaharlal Nehru Port Trust (JNPT); Kolkata; New Mangalore; Tuticorin; or Visakhapatnam.

BIR welcomes the possibility to self-certify, however we note now three written guarantees need to be provided.