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India Eliminates Pre-Shipment Inspection Certification (PSIC) for Metal Scrap

ISRI’s advocacy efforts paid off in India with last month’s announcement that the Director General Foreign Trade (DGFT) lifted the Pre-Shipment Inspection Certification (PSIC) requirement for all metal scrap from the United States,

United Kingdom, Canada, New Zealand, and Australia that enters the Ports of Chennai, Tuticorin, Kandla, Jawaharlal Nehru Port Trust (JNPT), Mumbai, and Krishnapatnam.  

Why this matters: The move was a recognition that these five source countries do not contain the type of “conflict” material that the Indian government was concerned could cause harm within India. India continues to be a strong and growing market for U.S. scrap metal (as well as other materials), and the removal of the PSIC should help better facilitate trade.

But, but, but…Consignments must still be accompanied by a “certificate from the supplier/ship yard authority to the effect that it does not contain any radioactive materials/explosives” and be subject to “radiation and explosive checks” at these ports, which were fitted with appropriate equipment. Furthermore, we were told that the nine other ports still authorized to take in material with PSIC are in the process of installing radiation detection equipment. It is important to know that the removal of PSIC is not a blanket import approval, and exporters need to ensure that the material can pass through Indian customs inspections (especially in light of what is happening in China).

How did this happen? This action comes after more than three years of advocacy by the Materials Recycling Association of India (MRAI), which ISRI strongly supported because of the opportunity to remove an administrative burden on scrap shipments to India. ISRI met directly with DGFT and other government stakeholders in October 2017 to appeal for this policy change. The joint effort was instrumental in providing the government confidence that trade between the United States and India remains strong.

For questions about international issues facing the scrap recycling industry, please contact Adina Renee Adler.

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