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DGFT Clarifies PSIC Exemption for Metallic Scrap Imports and ICD Clearance

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Summary: The Directorate General of Foreign Trade, through Public Notice No. 35/2026-27 dated 21 October 2026, has amended paragraph 2.51(d)(v)(iv) of the Handbook of Procedures, 2023, to specify the scope and conditions of exemption from the Pre-Shipment Inspection Certificate (PSIC) requirement for metallic waste and scrap imports. The amended provision retains the general requirement for a PSIC from the country of origin. However, both shredded and unshredded metallic waste and scrap imported from designated safe countries or regions—the USA, UK, Canada, New Zealand, Australia and the EU—qualify for exemption subject to specified safeguards. The consignment must carry a certificate from the supplier or scrap yard authority confirming that it contains no radioactive materials or explosives. It must enter through one of eleven specified sea ports: Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra, Kattupalli, Hazira, Kamarajar and Adani Gangavaram. Mandatory radiation and explosive checks through portal monitors and container scanners must be conducted at these ports. Trans-shipments through the designated safe countries or regions remain ineligible for exemption. The amendment expressly permits Customs clearance for home consumption either at the designated entry sea port or at an Inland Container Depot (ICD). For ICD clearance, all prescribed conditions must first be satisfied at the entry port, and proof of compliance must be provided at the ICD.

Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi

Public Notice No. 35/2026-27-DGFT |Dated: 21st October, 2026

Subject: Amendment to the provisions relating to PSIC requirements for import of metallic waste and scrap under the Handbook of Procedures, 2023 – reg.

In exercise of the powers conferred under paragraphs 1.03 and 2.04 of the Foreign Trade Policy (FTP), 2023, as amended from time to time, the Director General of Foreign Trade hereby makes the following amendment to paragraph 2.51 (d) (v) (iv) of the Handbook of Procedures (HBP), 2023:

Para No. Existing Provision Amended Provision
Para 2.51(d) (v) (iv) Import consignments of metallic waste and scrap shall be subject to pre-shipment inspection certificate (PSIC) from the country of origin. However, metallic waste and scrap (both shredded and unshredded) imported from safe countries/region i.e., the USA, the UK, Canada, New Zealand, Australia and the EU will not require PSIC if consignments are cleared through eight (8) ports namely, Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra and Kattupalli. Consignments from these six countries/regions will be accompanied by certificate from the supplier/scrap yard authority to the effect that it does not contain any radioactive materials/explosives. These will, however, be subject to radiation and explosive checks through portal monitors and container scanner at these ports. Trans-shipments through these countries/regions will not be allowed this facility. Import through remaining eight (8) other ports (for both shredded and unshredded scrap/waste), irrespective of country of origin, will be subject to PSIC. Import consignments of metallic waste and scrap shall be subject to a Pre-Shipment Inspection Certificate (PSIC) from the country of origin.

Provided that import of metallic waste and scrap (both shredded and unshredded) imported from designated safe countries/regions, namely the USA, UK, Canada, New Zealand, Australia, and the EU, shall be exempt from requiring a PSIC, subject to the fulfillment of the following conditions:

(a) The consignment is accompanied by a certificate from the supplier or scrap yard authority certifying that it does not contain any radioactive materials or explosives;

(b) The consignment enters through any of the following sea ports, namely Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra, Kattupalli, Hazira, Kamarajar, and Adani Gangavaram, subject to mandatory radiation and explosive checks through portal monitors and container scanners at these ports; and

(c) Trans-shipments through these countries/regions will not be allowed exemption from PSIC.

The exemption from PSIC specified herein shall apply for Customs clearance for home consumption at the designated entry sea port or at an Inland Container Depot (ICD), provided that all conditions specified under clauses (a) to (c) above are satisfied at the port of entry and, in case of clearance at an ICD, proof of the same is provided at the ICD.”

Effect of this Public Notice: Para 2.51(d)(v)(iv) of the Handbook of Procedures, 2023 is amended to set out in more precise terms the scope of the PSIC exemption for metallic waste and scrap imported from Safe Countries/Regions, including its applicability to eligible consignments cleared through an Inland Container Depot, subject to the conditions specified.

(Lav Agarwal)
Director General of Foreign Trade &
Ex-Officio Additional Secretary to the Government of India
E-mail: [email protected]

(Issued from F. No.01/89/180/38/PSIA/AM-26/PC-2(A)/E-47154)

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