The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, Government of India, has amended the provisions governing the requirement of Pre-Shipment Inspection Certificates (PSIC) for imports of metallic waste and scrap under the Handbook of Procedures (HBP), 2023. The amendment has been notified through Public Notice No. 35/2026-27 dated October 21, 2026, with the objective of expanding the scope of PSIC exemption for eligible imports from designated safe countries and regions, subject to prescribed safety and verification requirements.
As per the Public Notice, import consignments of metallic waste and scrap will continue to be subject to a Pre-Shipment Inspection Certificate (PSIC) from the country of origin as a general requirement. However, imports of both shredded and unshredded metallic waste and scrap originating from designated safe countries and regions, namely the United States of America (USA), United Kingdom (UK), Canada, New Zealand, Australia and the European Union (EU), will be eligible for exemption from the PSIC requirement, provided the specified conditions are fulfilled.
Under the amended provisions, DGFT has expanded the list of designated seaports eligible for PSIC-exempt imports. The revised list includes Chennai, Tuticorin, Kandla, Jawaharlal Nehru Port (JNPT), Mumbai, Krishnapatnam, Mundra, Kattupalli, Hazira, Kamarajar and Adani Gangavaram. The amendment increases the number of designated seaports from eight to eleven, thereby extending the availability of the exemption to additional entry points for eligible metallic waste and scrap consignments.
The Public Notice stipulates that consignments seeking exemption from PSIC must be accompanied by a certificate issued by the supplier or scrap yard authority certifying that the imported material does not contain radioactive materials or explosives. Such consignments must also undergo mandatory radiation and explosive checks through portal monitors and container scanners at the designated seaports to ensure compliance with the prescribed safety requirements.
Further, DGFT has clarified that trans-shipments through the designated safe countries or regions will not be eligible for exemption from the PSIC requirement. This condition ensures that the exemption remains applicable to eligible consignments originating from the specified safe countries and regions, rather than consignments merely routed through them.
A significant feature of the amendment is the extension of PSIC exemption to eligible consignments cleared through Inland Container Depots (ICDs). Under the revised provisions, the exemption will also apply to customs clearance for home consumption at an ICD, provided the consignment enters through one of the designated seaports and all prescribed conditions relating to certification, radiation and explosive checks, and trans-shipment are satisfied at the port of entry. Importers must furnish proof of compliance with these conditions at the concerned ICD.
The amendment has been introduced through revisions to paragraph 2.51 of the Handbook of Procedures, 2023, 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 revised provisions provide greater clarity regarding the eligibility and conditions for PSIC exemption for metallic waste and scrap imported from designated safe countries and regions. By expanding the number of eligible seaports and extending the exemption to qualifying ICD clearances, the amendment broadens the available customs clearance arrangements while retaining mandatory safety checks and certification requirements.
The Public Notice has been issued by the Directorate General of Foreign Trade, Ministry of Commerce and Industry, Government of India, and sets out the amended regulatory framework for PSIC requirements applicable to imports of metallic waste and scrap under the Handbook of Procedures, 2023.
The Public Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/10/PN-35-2026-27-English.pdf
