Metal Scrap Import License- Check Eligibility in 5 Minutes

Metal Scrap Import License- An Overview

A Metal Scrap Import License is a mandatory authorization for businesses in India. It allows us to legally import metal scraps in ferrous and non-ferrous types from around the world. The metal scrap is listed under the restricted goods in India’s import policy, prohibiting importers from importing it within India without approval from the mandatory government authorities.

The scrap import license in India is governed under the Foreign Trade Policy (FTP). It requires compliance with DGFT, MoEFCC, and the Customs Department. Without this, any attempt for metal scrap import procedure in India is illegal. It incurs penalties, goods are seized, or stringent legal actions are taken against the importer.

In India, 300 million is the projected steel production between 2025 and 2030, which drives the demand for imported metal scrap and the regulatory scrutiny with it. Businesses in metal recycling, metal manufacturing or secondary raw materials must hold a valid metal scrap license and renew it before its expiry.

Are you seeking assistance for a metal scrap import license? If yes, Enterclimate has the best metal scrap import license consultants in India. Ensure compliance, from proper metal scrap classification to documentation, and final approval of scrap import license, assisted by Enterclimate’s experienced professionals.

Why is the Metal Scrap Import License Required?

India’s import regulations classify metal scrap as a restricted item that affects the environment and increases the quality control concerns. Imported metal scraps can carry toxic waste, hazardous materials, or contaminated substances, posing a heavy risk to public health and the environment. It mandates the metal scrap import license for every entity.

Besides, the key reasons why the license is mandatory are provided below:

• Prevention of illegal dumping of hazardous or contaminated metal scrap in India.
• Environmental compliance under the MoEFCC guidelines.
• Customs clearance at Indian ports requires a valid import authorization.
• Secures the domestic recycling industry from degraded quality metal scrap.
• A metal scrap import license is required for duty exemptions and trade benefits under the government schemes and incentives.

Who Needs a Metal Scrap License?

To know the main entities that must obtain a metal scrap license, see the list given below:

• Scrap traders and importers of metal scrap (iron, steel, aluminium, and copper)
• Metal scrap manufacturing units
• Metal scrap recyclers
• Hazardous waste handlers (require MoEFCC approval)

What are the Benefits of Obtaining a Metal Scrap Import License in India?

Here is a list of a wide range of benefits that businesses leverage for obtaining the metal scrap import license in India, see below:

• Promotes cost-effective import of material sourcing for increased profitability.
• Improves legal compliance and ensures smooth customs clearance.
• Provides easy access to high-quality global supply chain suppliers.
• Legally authorizes the import of materials for recycling, helping save energy and reduce emissions.
• Supports eligibility for government schemes and incentives on metal scrap import duties.

What are the Documents Required for a Metal Scrap Import License in India?

Before you apply for a Metal Scrap Import License in India, it is essential to have all the required documents. Find the document list provided below:

BUSINESS DOCUMENTS

• GST Registration Certificate
• Import Export Code (IEC)
• Environmental Clearance (EC)
• PAN Card of the company
• Certificate of Incorporation / Partnership Deed
• Board Authorization Letter
• Audited financial statements (last 2 to 3 years)

TECHNICAL & COMPLIANCE DOCUMENTS

• MoEFCC authorization form with facility details
• Pre-shipment inspection certificate
• Scrap composition test report from accredited labs
• DGFT import license + HS code details
• Pollution Control Board consent letter
• Site layout plan + storage capacity details

IMPORT TRANSACTION DOCUMENTS

• Invoice from the global supplier
• Packing list with weight + composition details
• Bill of Lading / Airway Bill
• Supplier’s certificate of origin
• Letter of Credit / Payment receipt
• Country of Origin Certificate

PORT CLEARANCE DOCUMENTS

• Bill of Entry filed with Indian Customs
• Advance Bill of Entry (if applicable)
• Insurance certificate for the shipment
• PSIC report issued by a recognized inspection agency
• Customs duty payment challan
• Port health clearance (for certain scrap types)

Metal Scrap Import Procedure in India

The metal scrap import procedure is given step-by-step below. Go through each step to understand how to obtain the metal scrap import license without delays or rejections.

Step 1: Obtain IEC Certificate:

Any business importing metal scrap by-products into India must secure a valid IEC license issued by DGFT. Enterclimate’s experts help to apply for and obtain a new IEC certificate.

Step 2: Identify the Correct ITC-HS Code:

Each type of metal scrap has a specific ITC-HS classification code. It determines applicable duties, license conditions, and inspection requirements. Our team of experts at Enterclimate helps businesses identify the correct code type and classify it to ensure accuracy in application filing.

Step 3: Secure MoEFCC Board Permit:

Businesses must secure MoEFCC approval for scrap import in hazardous scrap and non-ferrous categories. Obtain authorization before applying for a DGFT license. The application includes facility details, waste handling capacity, and environmental compliance credentials.

Step 4: Apply for DGFT Import License:

After the MoEFCC approval, the importer applies for a DGFT license for metal scrap.

Step 5: Organize Pre-Shipment Inspection at Origin Country:

Once a DGFT license is obtained, an importer must arrange for a pre-shipment inspection certificate for metal scrap by a DGFT-authorized inspection facility at the supplier’s location. The PSIC verifies scrap type, composition, and quantity before shipment.

Step 6: Filing Bill of Entry:

The importer files the bill of entry with a valid license and an inspection certificate.

Step 7: Customs Clearance

Customs officials examine the documents and the physical shipment before releasing the goods.

Step 8: Post-Import Compliance Reporting:

After customs clearance, importers must submit the report to the DGFT and the MoEFCC as required. Annual compliance reports, utilization certificates and license debit entries are obligations for post-import of the metal scrap.

Types of Metal Scrap Under the Import License in India

There are various types of metal scrap under the import license, classified under Non-Ferrous and Ferrous Metal Scrap. Look at the given list of metal scrap under the import license below:

Non-Ferrous Metal Scrap includes:

• Copper scrap import license in India (ITC-HS 7404)
• Aluminium scrap import license in India (ITC-HS 7602)
• Zinc scrap (ITC-HS 7902)
• Lead scrap (ITC-HS 7802)
• Nickel scrap (ITC-HS 7503)
• Brass and bronze scrap

Ferrous Metal Scrap includes:

• Iron and steel scrap (ITC-HS 7204)
• Cast iron scrap
• Stainless steel scrap
• Ship-breaking scrap (separately regulated)
• Mixed metal scrap with prior approval
• Shredded scrap with composition certification

Regulatory Authorities for Metal Scrap Import

Importing metal scrap in India is a multi-authority process. Each regulator has a specific role, and approvals must be obtained for metal scrap import in the correct sequence. To not miss any clearance, look for the regulators’ list provided below:

Directorate General of Foreign Trade:

The DGFT authority issues import licenses under the Foreign Trade Policy. The DGFT license for metal scrap import is the primary authorization document for restricted scrap categories. Businesses must have a valid IEC and apply for specific commodity licenses through the DGFT portal.

Ministry of Environment, Forest, and Climate Change:

Importers require MoEFCC approval for the metal scrap license. It is crucial for non-ferrous metal scraps, such as copper and aluminium.

Central Pollution Control Board:

The CPCB authority functions with the MoEFCC to review applications for hazardous scrap categories. The authority issues conditions or restrictions based on the nature of the metal scrap and the importer’s waste handling capacity and facility credentials.

Customs Department:

The Central Board of Indirect Taxes and Customs handles port-level clearance. Importers must submit valid licenses, import documents, and PSIC reports during customs examinations.

PSIC Agencies-Pre Shipment Inspection:

Government-recognized inspection agencies conduct physical verification of metal scrap at the origin country before shipment. The pre-shipment inspection certificate for metal scrap confirms that the type, quality, and quantity of scrap meet Indian import standards.

What is the Validity of Metal Scrap Import License in India?

A metal scrap import license in India is valid for 5 years from the date of approval by the MoEFCC/SPCB. The DGFT import license for metal scrap import is valid for 18 to 24 months.

What is the Fee Structure for Metal Scrap Import License in India?

The total cost of obtaining a metal scrap import license in India requires a mandatory IEC registration fee worth Rs. 500, which is a government fee. Also, a prescribed fee for demand draft (DD) with Professional Service Charges, Registration with inspection facility, and MoEFCC clearance fee is required for hazardous waste imports.

Why Trust Enterclimate for Metal Scrap License in India?

Enterclimate is blessed with seasoned metal scrap import license consultants in India. It provides valuable assistance to businesses willing to get a metal scrap import license. But how does it do that? With 10+ years of experience, our professionals guide you for DGFT license approval for metal scrap import. We’ve dedicated experts to handle each client case across India, covering all states and major ports.

From EPR compliance management to EPR target fulfilment and environmental audit, we handle everything for you.

Have a look at the key reasons why we are the first choice for a metal scrap license in India-

• 10+ years of scrap import licensing leadership
• 500+ metal scrap importers trust us
• 360° DGFT, MoEFCC, PSIC compliance support
• 18–24 month DGFT license validity guidance
• 30+ critical documents reviewed before filing
• 4-key authority compliance support included
• Ferrous and non-ferrous scrap license expertise
• 24/7 availability of experienced consultants
• Secured MoEFCC permission for scrap import