Indian government provides relaxation to scrap importers by creating new provision in the stringent PSIC norms for scrap imports
According to the notification issued on 30 Jul’15, “Regardless of the procedure mentioned in the PSIC norms of Foreign Trade Policy 2015-2020, an importer is allowed to import scrap from port having scanners/radiological detection equipments (RDEs) facilities.”
Highlights of the Provision
- The metal scrap being imported must be processed metallic scrap
- The consignment must be inspected before shipment and it must not contain any explosive or radioactive material
- The importer shall furnish bank guarantee of INR 10,00,000 to the customs as security amount
- The importer shall also have to submit a copy of contract with the exporter stipulating that the consignment does not contain any type of explosive or radioactive material
- All scrap consignments shall have to compulsorily pass through the scanners / radiological detection equipments (RDEs), installed at designated Indian ports
- The importer shall be responsible for exporting back the contaminated consignment back to the exporting country at his risk and cost.
How will it benefit Indian Scrap imports?
Despite the fact that strict PSIC norms will hits scrap imports in the country to a greater extent, the Indian’s importing from nations having advanced radiation detection setups can continue to have uninterrupted trades in future. But, on the other side of the norm, the nations, lacking such setups have to follow strict PSIC norms to continue scrap trades with India. It is anticipated that offers (proposal) coming from nations such as Middle East and Africa would slowdown to a noticeable extent, whereas Europe & US having advanced yards may benefit with the changes in norms.
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