Clearance of imported metal scrap - CBEC's Customs Manual 2023 - Customs

11. Clearance of imported metal scrap: 11.1 In terms of the relevant provisions of the Foreign Trade Policy, the following procedure is prescribed for clearance of imported metal scrap. (i) Import of any form of metallic waste, scrap will be subject to the condition that it will not contain hazardous, toxic waste, radioactive contaminated waste / scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridge or any other explosive material in any form either used or otherwise. (ii) In view of Circular No. 48/2016-CustomsImport of metallic waste and scrap (both ferrous and non-ferrous) of certain categories, listed in Para 2.54 of Handbook of Procedures (2015-2020)in shredded form shall be permitted through all ports of India without any pre-shipment certificate as per the existing practice. [Refer Circular No.48/2016 dated 26.10.2016 and Circular No.53/2016-Customs dated 18.11.2016 ] (iii) Import of metallic waste, scrap(both ferrous and non-ferrous), Para 2.54 of Handbook of Procedures (2015-2020). , in unshredded compressed and loose form shall be subject to the guidelines issued the Director General of Foreign Trade, Ministry of Commerce and Industry, Government of India under Public Notice No. 38/2015-2020 dated 06.10.2016 (followed by a Corrigendum by way of a Public Notice No. 40/2015- 2020 dated 25.10.2016 ) and as per the following procedure: (a) The consignments of un-shredded, compressed or loose scrap shall be cleared only through those EDI ports where Risk Management Module is operational. These consignments will be subjected to documentary or physical check on the basis of selection done by Risk Management System. (b) All the designated seaports as specified in the DGFT Public Notice No. 38/2015-2020 dated 06.10.2016 are expected to install and operationalize Radiation Portal Monitors and Container Scanners by 31.03.2017 and till such time, the consignments of un-shredded, compressed or loose scrap shall be subjected to scanning based on risk assessment at those ports where such facilities for scanning are currently existing. (c) Depending upon the congestion at the Port/ICD, the availability of manpower and the antecedents of the importer, the concerned Principal Commissioner/Commissioner of Customs or Principal Commissioner/Commissioner of Central Excise, as the case may be, may permit the importer to remove the sealed container at his own risk and cost to his factory premises under re-warehousing procedure. This would be subject to conditions specified in (a) (b). The importer shall furnish the following documents to the Customs at the time of clearance of goods: (a) Pre-shipment inspection certificate as per the format in Annexure-I to the said Appendix 5 from any Inspection Certification agencies given in the said Appendix 5 to the effect that: (i) The consignment does not contain any type of arms, ammunition, mines, shells, cartridges, radioactive contaminated or any other explosive material in any form either used or otherwise. (ii) The imported item(s) is actually a metallic waste/ scrap/ seconds/ defective as per the internationally accepted parameters for such a classification. (b) Copy of the contract between the importer and the exporter stipulating that the consignment does not contain any type of arms, ammunition, mines, shells, cartridges, radioactive contaminated, or any other explosive material in any form either used or otherwise. (c) Import of scrap would take place only through following designated ports and no exception is allowed even in case of EOUs and SEZs listed below in table 7.1. Table 8.1: List of designated ports and ICDs for Import of scrap S.No. Ports S.No. Port/ICDs 1. Chennai 16. Kattupalli 2. Cochin 17. Hazira 3. Ennore 18. Kamarajar 4. JNPT 15. Ahmedabad ICD 5. Kandla 16. Dadri (Greater Noida) ICD 6. Kolkata 17. Jaipur ICD 7. Mormogua 18. Jodhpur ICD 8. New Mangalore 19. Kanpur ICD 9. Mumbai 20. Loni. Ghaziabad 10. Mundra 21. Ludhiana ICD 11. Paradip 22. Malanpur ICD 12. Pipava 23. Mulund ICD 13. Tuticoron 24. Nagpur ICD 14. Vishakaptnam 25 . Pitampur ICD 15. Krishnapatnam 26. Udaipur ICD [Refer DGFT Public Notice 15/2015-2020 dated 20.07.2021 ] (iv) Import of other kinds of metallic waste and scrap will be allowed in terms of conditions of ITC (HS). Further, import from Hodaideh, Yemen and Bandar Abbas, Iran will be in shredded form only. (v) In respect of metal scrap in unshredded, compressed or loose form accompanied by a pre-shipment inspection certificate, examination will be 25% of the containers in respect of manufacturer-importers and 50% in respect of traders, for each import consignment, subject to examination of a minimum of one container. The container selected will be examined 100%. Where EDI with Risk Management Module (RMM) is operational, the percentage of examination will be determined by the RMM. (vi) Imported metal scrap in unshredded, compressed or loose form not accompanied by the prescribed pre-shipment inspection certificate will be subject to 100% examination apart from stringent penal action for violation of provisions of the FTP. The examination may be done in the presence of police authorities, if considered necessary by the Commissioner, at the risk and cost of the importer. (vii) For scrap imported in shredded form examination may be limited to 10% of the consignment subject to examination of minimum one container. The identified container should be examined 100%. (viii) In respect of metal scrap consignments meant for EOUs and SEZ units the existing procedure is relevant subject to 100% examination at the premises of the EOU or the SEZ unit, in the presence of police authorities, if considered necessary by the proper officer. (ix) It will be the responsibility of the shipping line to ensure that every consignment of metal scrap in unshredded, compressed or loose form is accompanied by such a preshipment inspection certificate before it is loaded on the ship. Failure to observe this precaution would invite penal action for abetment regarding irregular import of metal scrap. [Refer Circulars No. 43/2001-Cus., dated 6-8-2001 , No.58/2001-Cus., dated 25-10-2001 , No.21/2003-Cus., dated 28-3- 2003 , No.23/2004-Cus., 5-3-2004 , No.39/2004-Cus., dated 3-6-2004 , No.60/2004-Cus., dated 26-10-2004 , No.40/2005-Cus. dated 3-10-2005 , No.48/2005-Cus., dated 28-11-2005 , No.28/2006-Cus., dated 6-11-2006 , No.13/2007Cus., dated 2-3-2007, No. 2/2010-Cus., dated 9-2-2010, and No.8/2010-Cus., dated 26-3-2010 , No.48/2016 dated 26.10.2016 and Instructions F.No.450/80/2000-Cus.IV, dated 24-7-2000, F.No.450/132/2004-Cus.IV, dated 4-1-2005 , F.No.450/122/2005-Cus-IV, dated 13-10-2005, F.No.450/08/2007-Cus.IV, dated 22-1-2007 , and F.No.450/19/2005-Cus.IV, dated 2-4-2009 ]