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The Director General of Foreign Trade (DGFT) plays a pivotal role in the regulation of India's foreign trade, with the issuance of various notices and guidelines. Keeping in line with this, DGFT has recently released a series of notices in the 2022-23 period which significantly affect the import and export of metal scrap. In this blog post, we will dissect these updates and explain how they impact the procedures related to the import and export of metal scrap in India.

Online Module for Pre-Shipment Inspection Agency (PSIA) Recognition

As per DGFT Trade Notice No.03/2022-23 dated 26-04-22, the DGFT has initiated a new online module to streamline the application process for recognition as a Pre-Shipment Inspection Agency (PSIA). This also covers the issuance and electronic verification of Pre-Shipment Inspection Certificates (PSICs) for metal scrap.

This system, effective from 1st July 2022, mandates all PSICs to be generated online via the DGFT website. This means any PSICs dated on or after 1st July 2022 that are not generated through the DGFT online systems may not be accepted by Indian customs authorities.

Standard Operating Procedures (SOP) for Imported Consignments

DGFT's Public Notice No.37/2015-20 dated 15-11-2021 outlines the SOP for random checking of imported metal scrap consignments with respect to radioactive contamination. It's imperative for all importers and customs officials to be familiar with these procedures to ensure safety and regulatory compliance.

Compulsory Registration under Steel Import Monitoring System (SIMS)

SIMS registration is a compulsory requirement for import under the DGFT policy. According to the policy condition No.5 of Chapter-72 and DGFT NTFN 33/2015-20 dated 28-09-20, the re-import of goods of steel for packaging purposes will not be covered under SIMS, as it is not primarily meant for value addition. Also, if the steel/steel item is exported from DTA to SEZ and then imported into DTA from SEZ with or without value addition, SIMS registration isn't required.

Clearance of Metallic Scrap

As per DGFT PN 64/2015-20 and PN 46/2015-20, the clearance of metallic scrap, shredded or non-shredded, is permitted at specific ports/locations. However, they must comply with the conditions outlined in Para 2.54 of HBP, which includes submission of PSICs from the exporting countries.

Hazardous Waste Management

The import of wastes should adhere to the rules stated in Para 8(B) of General Notes regarding the Import Policy of ITC (HS) and the Hazardous Waste (Management & Transboundary Movement) Rules, 2016. Relevant documentation and verification forms must accompany the imported consignment to ensure compliance with these rules.

PGA Facilitated Bills

For PGA facilitated bills that haven't been routed through PGA for NOC, officers should verify that mandatory documents, including PSIC [856001], have been uploaded in the E-Sanchit system before granting clearance.

Advanced Information Submission under SIMS

The Steel Importing Monitoring System (SIMS) has further implemented a system to obtain advance information for the import of items. This requires the importer to submit information in an online system and obtain an automatic registration number. This can be done up to 60 days prior to the expected date of arrival of the import consignment, with the registration number being valid for a period of 75 days.

FTP Compliance

Importers are to ensure compliance with Para 2.32 of FTP and Para 2.54 and 2.55 of FTP procedure, which specify import and export policies for various commodities, including metallic scrap.

Import of Un-shredded Scrap

Procedure for the import of un-shredded scrap (HMS-I and HMS-II) under Para 2.54 of HBP(2015-2020) as per DGFT PN No 38/2015-2020 dated 06-10-2016 has been detailed. Amendments to these procedures over time should be referred to in order to ensure compliance.

As an Export-Import Guru, it is crucial to stay updated with these changes and implement them effectively to ensure a smooth trade process. By understanding and applying these changes, you can ensure a compliant, efficient, and productive business operation in the metal scrap import and export sector. Stay tuned for more updates and insights in the world of foreign trade!

Here's a point by point explanation:

1. DGFT Trade Notice No.03/2022-23 (26-04-22): A new online module will be introduced for applications to be recognized as a Pre-Shipment Inspection Agency (PSIA), as well as for the issuance and electronic verification of Pre-Shipment Inspection Certificates (PSIC) for metal scrap. All PSICs must be generated online via the DGFT website from 1st July 2022. Any PSICs issued on or after this date that are not generated using this system may not be accepted by the Indian Customs authorities.

2. Standard Operating Procedures (SOP) for Radioactive Contamination: Imported metal scrap consignments must be randomly checked for radioactive contamination. The procedures for these checks are detailed in the annexure to DGFT Public Notice No.37/2015-20 (dated 15-11-2021).

3. Steel Import Monitoring System (SIMS) Registration: Import of metal scrap under this Commodity Trade Index (CTI) requires mandatory registration under SIMS, as per Policy Condition No.5 of Chapter-72 and DGFT Notification 33/2015-20 (dated 28-09-20). However, certain types of re-imports of goods of steel for packaging purposes and value addition cases are exempted from SIMS registration as per DGFT Policy Circular No.38/2015-20 (19-01-22).

4. Clearance of Metallic Scrap: Clearance of metallic scrap is allowed at certain ports and locations (SPFD Ports), under specific conditions as outlined in Para 2.54 of the Handbook of Procedures (HBP), which also includes the submission of PSIC. Some exemptions are granted if the export is from certain 'safe' countries or regions and if imported through specified ports.

5. Import of Wastes: This is subject to compliance with certain regulations, including Para 8(B) of the General Notes on Import Policy of the ITC (HS) and Rules 11, 12, & 13 of the Hazardous Waste (Management & Transboundary Movement) Rules, 2016. Certain forms and documents are required for verification in accordance with these rules.

6. PGA Facilitated Bills: For bills that haven't been routed through Pre-Gate Appointment (PGA) for No Objection Certificate (NOC), the proper officer should verify that mandatory documents, including the Pre-Shipment Inspection Certificate, have been uploaded in the e-Sanchit system before clearing the cargo.

7. SIMS Requirements: Importers must submit advance information in an online system for import of items and obtain an automatic registration number by paying a registration fee. Details about the fee structure and the process are provided. The requirement of advance registration of minimum 15 days from the expected date of arrival of the import consignment has been abolished.

8. FTP Compliance: The compliance of Para 2.32 of the Foreign Trade Policy (FTP) and Para 2.54 and 2.55 of the FTP procedure must be ensured.

9. CBIC Circulars on Metal Scrap Import Procedures: The import of metal scrap procedure is detailed in certain Central Board of Indirect Taxes and Customs (CBIC) circulars that are mentioned.

10. DGFT Public Notices on Un-shredded Scrap Import: Procedure governing import of un-shredded scrap under Para 2.54 of the HBP is mentioned in DGFT Public Notice 38/2015-2020 (dated 06-10-2016) and its subsequent corrigendum.

11. DGFT Public Notice No 63/2015-2020 and Trade Notice No.19/2017: This notice and the clarification have also been referred to and likely contain further stipulations for the import of metal scrap.