Indian government pulls out the pre-inspection clause for metal scrap import, from its recently announced Foreign Trade Policy (FTP).
The Indian Commerce Ministry had made it mandatory for all exporters to record video of their scrap shipments to India, with effect from 1 Apr’15, under FTP.
Through the efforts of MRAI (Metal Recycling Association of India) and after many meetings with DGFT (Directorate General of Foreign Trade), the pre-inspection clause has been kept in abeyance, till further notice.
“DGFT has today issued a notification that till further orders, the notification issued on 1 Apr’15 (only in relation to the PSIC process) is kept in abeyance ” mentioned in an official statement issued by MRAI.
What amendment was made in the new FTP & why was it opposed?
The government amended Chapter 2 Clause 56, which is related to Pre-Shipment Inspection Certification (PSIC) process.
Under this clause, all metal scrap imports should not only be inspected by DGFT, but also the entire scrap loading in containers/vessels should be video graphed simultaneously, showing exporter’s face, inspector’s face, all carriage information and inspection equipment. This video in turn needs be edited to 3-5 minutes and have to be mailed to DGFT for each and every shipment.
The exporters, importers & other market participants opposed this, stating that it was an impractical clauses to perform in the business.
According to them, it was an unnecessary, costlier & time-consuming act, which would add up to the challenges in future while trading across the globe.
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