Recently, Indian government has released a New Foreign Trade Policy 2015-2020 and added a new regulation of video graphing under Pre-shipment inspection procedures for metal Scrap imports.
Recent legal Foreign Trade Policy, 2015-2020 released by the Ministry of Commerce (Directorate General of Foreign Trade) has affected Metal Scrap importers & consumers adversely.
In the new FTP 2015-2020, all the five different schemes under FTP 2009-2014 have been merged into a single scheme viz Merchandise Export from India Scheme (MEIS). Moreover, the government amended Chapter 2 Clause 56, which is related to Pre-shipment Inspection Certification (PSIC) process. Under PSIC, all metal Scrap imports are not only inspected by DGFT, but also the entire Scrap loading in containers/vessels should be video graphed simultaneously, showing exporters face, inspector’s face, all carriage information and inspection equipment. This video in turn will be edited to 3-5 minutes and have to mail DGFT for each and every shipment. Unfortunately, this is impractical for exporters & importers (for more detail, review page 57 of the link given below).
Metal Recycling Association of India (MRAI) members are shocked and unsatisfied with the amendments proposed in the PSIC procedure.
Across the worldwide, not a single country has such regulation as the concept of making video is not feasible to several foreign suppliers because of various restrictions and local laws. Many suppliers have started canceling earlier shipments due to the PSIC procedures.
Scrap Loading to India halts from Middle East & Europe
Scrap exporters have halted to load material in the Indian market, seeking more clarity on PSIC. Some exporters have also reported for selling their cargoes at price higher by USD 5/MT on High Sea Sales basis.
Another exporter based in Europe mentioned that it is not possible to video-graph every container, when loading takes place vertically.
Every year, India imports about 6 MnT Ferrous & Non-ferrous scraps to fulfill its requirements. MRAI is hopeful that the Indian government will suitably amend the policy in order to maintain a proper flow of raw material into the country, so that the domestic industry doesn’t come to a half for want of metal Scrap.
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