DGFT Revises PSIC Requirements for Metallic Waste and Scrap Imports: Exemption Extended to 11 Seaports and Inland Container Depots

The Directorate General of Foreign Trade (DGFT) has introduced an important amendment to the regulatory requirements governing the import of metallic waste and scrap into India. Through Public Notice No. 35/2026-27, dated 21 October 2026, the government has revised the conditions for exemption from the mandatory Pre-Shipment Inspection Certificate (PSIC) requirement under paragraph 2.51(d)(v)(iv) of the Handbook of Procedures, 2023.

The amendment provides greater clarity regarding the circumstances in which metallic waste and scrap consignments can be imported without a PSIC. It also expands the number of seaports through which eligible consignments may enter India and expressly permits qualifying consignments to obtain Customs clearance for home consumption at Inland Container Depots (ICDs).

Previously, the provision reproduced in the Public Notice allowed the exemption for eligible consignments from designated safe countries or regions when cleared through eight specified ports. Under the amended provision, the PSIC exemption is available for qualifying imports entering through 11 designated seaports, subject to compliance with prescribed documentation, radiation screening, explosive detection and trans-shipment conditions.

The amendment is particularly relevant to businesses engaged in ferrous and non-ferrous scrap trading, metal recycling, scrap processing, industrial raw-material procurement and international logistics.

Importantly, DGFT has not abolished the PSIC requirement for all metallic waste and scrap imports. Instead, it has established a more explicit conditional exemption framework.

Understanding the Pre-Shipment Inspection Certificate (PSIC)

A Pre-Shipment Inspection Certificate is an inspection-related document required for metallic waste and scrap imports under the applicable DGFT framework, unless a specified exemption applies.

The PSIC requirement forms part of the regulatory safeguards intended to address safety risks associated with imported metallic waste and scrap, including the possible presence of radioactive materials, explosives, and other prohibited or dangerous materials.

Under the general rule retained in the amended paragraph, import consignments of metallic waste and scrap are subject to a PSIC from the country of origin.

However, DGFT recognises a conditional exemption for metallic waste and scrap originating from certain designated safe countries and regions.

This distinction is essential. An importer cannot assume that a PSIC is unnecessary merely because the consignment contains ordinary recyclable scrap, is being imported from a developed country, or is being cleared through a major Indian port.

Eligibility must be established against the specific conditions laid down in the amended provision.

Legal Basis of the Amendment

The Director General of Foreign Trade issued the Public Notice under the powers conferred by paragraphs 1.03 and 2.04 of the Foreign Trade Policy, 2023, as amended from time to time.

The amendment specifically substitutes the provision under paragraph 2.51(d)(v)(iv) of the Handbook of Procedures, 2023.

The change relates to the PSIC requirement, and its exemption conditions. It does not by itself, remove separate import conditions, Customs obligations, safety requirements, environmental restrictions or other applicable regulatory approvals.

Businesses should therefore assess the PSIC exemption alongside the other legal requirements applicable to their particular scrap category and import transaction.

Comparison of the Previous and Amended PSIC Requirements

The principal regulatory change is therefore not the removal of inspection-related safeguards, but an expansion and clarification of the circumstances in which the PSIC exemption can be claimed.

Countries and Regions Eligible for PSIC Exemption

Under the amended provision, metallic waste, and scrap imported from the following designated safe countries, or regions may qualify for exemption:

1. United States of America (USA)
2. United Kingdom (UK)
3. Canada
4. New Zealand
5. Australia
6. European Union (EU)

The EU is recognised as a designated region for the purpose of the provision.

The exemption covers both shredded and unshredded metallic waste and scrap originating from these designated countries and regions.

However, the origin requirement is only one aspect of eligibility. Importers must also satisfy the documentation, designated entry-port, safety-screening, and trans-shipment conditions.

Important clarification: Merely routing goods through a designated safe country or region does not establish eligibility for the exemption. The declared origin of the goods and the actual shipment route must be reviewed carefully.

Imports originating from countries outside the prescribed safe-country list do not qualify for this particular PSIC exemption, even when the consignment enters through one of the 11 listed seaports.

Expansion of Eligible Seaports from Eight to Eleven

One of the most significant features of Public Notice No. 35/2026-27 is the inclusion of three additional seaports in the list of entry ports eligible for PSIC-exempt consignments.

The amended provision identifies the following 11 seaports:

The addition of Hazira, Kamarajar, and Adani Gangavaram widens the available entry-port options for importers seeking the conditional PSIC exemption.

This may provide greater operational flexibility in shipment planning, routing, and subsequent inland movement.

However, the availability of a listed seaport does not automatically eliminate the PSIC requirement. Every other prescribed condition must also be fulfilled.

The 11-port list specifically identifies ports eligible for the exemption. It should not be treated as a complete statement of every port at which metallic scrap imports may otherwise be permitted under the wider import framework.

Mandatory Conditions for Claiming the PSIC Exemption

The amended provision prescribes three principal conditions. These conditions must be satisfied for the exemption to apply.

Condition A: Certificate from the Supplier or Scrap Yard Authority
Every consignment claiming the exemption must be accompanied by a certificate issued by the supplier or scrap yard authority.

The certificate must confirm that the consignment does not contain radioactive materials or explosives.

This certificate is different from a PSIC.

Although eligible consignments are exempt from obtaining a PSIC, they are not exempt from the supplier or scrap yard certification requirement.

Compliance guidance: Importers should obtain the required certificate before shipment and verify that it can be reliably linked to the relevant consignment.

For better documentation control, businesses may request identification details such as the supplier's name, consignment or container reference, material description, shipment particulars, date and authorised signature.

These additional details are recommended documentation practices, the Public Notice itself does not prescribe a detailed certificate template.

Condition B: Entry Through a Designated Seaport and Mandatory Safety Checks
The consignment must enter India through one of the 11 designated seaports specified in the amended provision.

At the designated entry port, the consignment remains subject to mandatory radiation and explosive checks through portal monitors and container scanners.

Accordingly, the exemption relates to the PSIC requirement only. It does not exempt the shipment from mandatory safety screening.

Importers, and logistics service providers should coordinate with the relevant port and Customs authorities to ensure that the prescribed checks are completed.

Businesses planning onward movement to an ICD should also establish a reliable method for obtaining and preserving evidence of screening compliance at the entry port.

Condition C: Restriction on Trans-Shipments
The amended provision specifically states that trans-shipments through the designated safe countries or regions will not be allowed the PSIC exemption.

This requirement is important because the mere involvement of a designated safe country in the transport route does not establish the eligibility of the imported goods.

Importers should assess both the actual country of origin and the shipment's trans-shipment history before claiming the exemption.

Shipping documents should be examined to identify intermediate ports and confirm that the consignment does not fall within the specified exclusion.

Where a shipment has involved complex trans-shipment arrangements, importers should obtain confirmation regarding exemption eligibility before proceeding without a PSIC.

Major Development: PSIC Exemption Extended to Inland Container Depots

The express recognition of Inland Container Depot clearance is among the most practically important aspects of the amendment.

Under the amended provision, the PSIC exemption applies to Customs clearance for home consumption either at the designated entry seaport or at an Inland Container Depot, provided the prescribed conditions are fulfilled.

For clearance at an ICD, all requirements under clauses (a), (b), and (c) must have been satisfied at the port of entry, and proof of that compliance must be furnished at the ICD.

How does this work?
Consider an Indian manufacturer importing metallic scrap from Canada.

The consignment enters India through Mundra Port, one of the 11 designated seaports.

The importer possesses the required supplier or scrap yard certificate, the shipment satisfies the trans-shipment restriction, and the mandatory radiation and explosive checks are completed at Mundra.

The consignment is subsequently moved under applicable Customs procedures to an ICD for clearance for home consumption.

Under the amended provision, the importer may claim the PSIC exemption at the ICD, provided proof demonstrating fulfilment of the prescribed conditions at the entry port is produced at the ICD.

Important Compliance Implication
The ICD provision does not mean that the mandatory radiation, and explosive checks may simply be postponed until the consignment reaches the ICD.

The Public Notice expressly links compliance with the conditions to the designated entry port.

Therefore, importers should maintain documentary continuity between the seaport entry process and the subsequent ICD clearance.

The notice does not prescribe a particular standardised format for furnishing proof at an ICD. Importers should verify the documentary evidence accepted by the jurisdictional Customs authorities.

Who Must Still Obtain a PSIC?

The general requirement of a PSIC from the country of origin continues to apply where the conditions for exemption are not satisfied.

For example, a PSIC may still be necessary where the metallic waste or scrap originates from a country outside the designated safe-country or region list.

Similarly, a consignment from an otherwise eligible country will not qualify for exemption if it fails to meet the mandatory certificate, entry-port, safety-screening, or applicable trans-shipment conditions.

An importer should not claim exemption solely because:

• The goods are shredded rather than unshredded.
• The supplier is located in a designated safe country, without establishing the relevant origin and shipment facts.
• The consignment arrives through a major Indian seaport not included in the exemption list.
• The shipment is intended for an ICD rather than direct seaport clearance.
• The importer has obtained a supplier certificate but cannot demonstrate compliance with the remaining conditions.

The guiding principle is that PSIC exemption is conditional, not automatic.

Where the exemption is unavailable, importers should arrange the applicable PSIC and comply with all other import requirements before shipment.

Step-by-Step Compliance Guide for Importers

Importers should check the exemption conditions before arranging shipment. The following steps cover the main points to review.

Step 1: Identify the Scrap
Check what the consignment contains and whether the metallic scrap is shredded or unshredded. Match the material with its customs tariff code and product description, then review the import conditions that apply to it.

Step 2: Confirm the Country of Origin
Check the documents to confirm where the scrap actually comes from. The supplier’s address or the country of shipment may be different from its country of origin.

Step 3: Check the Shipping Route
Review the route taken by the scrap before it reaches India. If the cargo passes through another port, or changes vessels, check whether the trans-shipment meets the conditions in the amended provision.

If the route changes after the booking is made, check the exemption conditions again before proceeding.

Step 4: Choose an Eligible Entry Seaport
The shipment must enter India through one of the 11 designated seaports to qualify under the stated conditions. Confirm the entry port with the shipping line, freight forwarder and customs broker, and check that the shipping documents show the correct details.

Step 5: Get the Required Certificate
Ask the supplier, or scrap yard for a certificate confirming that the shipment contains no radioactive materials, or explosives. Check that the certificate covers your consignment and keep it with the import documents.

Step 6: Complete the Required Screening
The shipment must undergo radiation and explosive checks at the designated seaport. Keep the screening records, and results with your import documents.

Step 7: Keep Records for ICD Clearance, Where Applicable
If the goods will be cleared for home consumption at an Inland Container Depot (ICD), keep evidence that the exemption conditions were met at the entry seaport. Discuss the records required for clearance with the customs broker, port operator, logistics provider and relevant ICD authorities.

Step 8: Check Eligibility Before Claiming the Exemption
Before submitting or finalising the Customs declaration, review the documents and confirm that the consignment meets the applicable conditions. Being shipped from an eligible country, or arriving at a listed seaport does not, by itself, establish eligibility.

Recommended Documentation Checklist

For businesses seeking to claim the PSIC exemption, a complete and traceable documentation file is advisable.

Note: This table covers documents used for regular import processing and records that may help establish eligibility for the PSIC exemption. The DGFT Public Notice specifically requires the supplier or scrap yard certificate, entry through the prescribed port, safety screening, compliance with trans-shipment conditions and proof at the ICD, where applicable. The notice does not list every document in this checklist as a mandatory requirement.

Practical Examples of PSIC Applicability

Example 1: Metallic Scrap Imported from the USA Through Chennai
A recycling business in India brings shredded metallic scrap from the USA through Chennai Port. The supplier provides the required certificate, and the shipment clears the prescribed safety checks, and meets the trans-shipment conditions.

PSIC status: The exemption may apply if the shipment meets all the conditions in the DGFT notice.

Example 2: Metallic Scrap Imported from Australia Through Hazira
An Indian manufacturer imports unshredded metallic scrap from Australia through Hazira Port. The PSIC exemption will apply only if the consignment meets the conditions set out in the DGFT notice.

Hazira is one of the three seaports newly included in the amended exemption list.

Position: The importer may claim the exemption if all remaining conditions are satisfied.

Example 3: Metallic Scrap Imported from Canada and Cleared at an ICD
An Indian company imports scrap originating in Canada through JNPT. Required certification, and safety checks are completed at the port of entry.

The consignment is subsequently cleared for home consumption at an ICD.

Position: The exemption may apply if the prescribed conditions were satisfied at JNPT, and the necessary proof is furnished at the ICD.

Example 4: Metallic Scrap Originating from a Non-Listed Country
An Indian business imports metallic scrap from a country not included in the designated safe-country list. The shipment arrives at Mundra Port.

Position: The shipment still requires a PSIC. Arrival at Mundra Port does not make scrap from a non-listed country eligible for the exemption.

Example 5: Eligible-Origin Scrap Entering Through a Non-Listed Seaport
An importer brings metallic scrap from the United Kingdom, but the shipment arrives at an Indian seaport that is not on the list of 11 designated ports.

Position: The importer cannot claim the exemption under the amended provision. The shipment must meet the applicable PSIC, and port-entry requirements.

Responsibilities of Importers, Suppliers and Logistics Stakeholders

Responsibilities of Indian Importers
Importers should establish whether the relevant shipment satisfies every exemption condition before relying on the amended provision.

They should confirm the material description, origin, documentation, shipment route, designated seaport, mandatory screening compliance and ICD clearance requirements.

Where required, they should arrange a PSIC rather than relying on incomplete exemption documentation.

Responsibilities of Overseas Suppliers and Scrap Yard Authorities
For eligible consignments, overseas suppliers and scrap yard authorities must provide the required certificate stating that the scrap contains no radioactive material, or explosives.

Accurate material descriptions, origin particulars, and consignment identification will also help importers assess eligibility.

Responsibilities of Customs Brokers and Freight Forwarders
Customs brokers and freight forwarders should verify the proposed entry seaport and movement arrangements, check the relevant import documentation and communicate any gaps in the exemption evidence to the importer.

For ICD clearances, they should coordinate the transfer and presentation of supporting documentation.

Responsibilities of Businesses Clearing Cargo at ICDs
Businesses planning ICD clearance should not assume that compliance at the entry seaport can be established retrospectively without supporting records.

They should verify how the prescribed screening and other conditions will be evidenced at the ICD and preserve the relevant records.

What Has Not Changed Under the New Notification?

Although the amendment expands the exemption framework, several important aspects remain unchanged.

First, the general PSIC requirement has not been withdrawn. It continues to apply unless the consignment qualifies for an exemption.

Second, the designated safe countries, and regions remain unchanged.

Third, both shredded, and unshredded metallic waste and scrap remain within the relevant exemption provision.

Fourth, the supplier, or scrap yard certification requirement has been retained.

Fifth, mandatory radiation and explosive checks at the specified seaports continue to apply.

Sixth, the restriction concerning trans-shipments through designated safe countries and regions remains in force.

Finally, the amendment does not expressly modify other independent legal requirements governing import clearance, waste management, prohibited materials, environmental compliance or Customs procedures.

Businesses should therefore avoid treating the exemption as a general relaxation of all scrap import controls.

Common Compliance Mistakes Importers Should Avoid

An incorrect interpretation of the amendment could lead to incomplete documentation, Customs queries, shipment delays, additional costs, or other consequences depending on the applicable law and circumstances.

Particular attention should be given to the following risks:

Mistake 1: Assuming PSIC has been abolished for metallic scrap imports. The notification provides a conditional exemption. It does not repeal the general requirement.
Mistake 2: Confusing the supplier certificate with a PSIC. They are different documents, and the supplier certificate remains necessary for consignments claiming the exemption.
Mistake 3: Ignoring the designated-port requirement. Eligible origin alone does not establish eligibility.
Mistake 4: Skipping mandatory screening. Radiation and explosive checks must still be carried out at the specified entry ports.
Mistake 5: Confusing transit with origin. Scrap passing through a safe country does not mean it originated there. Check where the scrap came from and whether the trans-shipment conditions have been met.
Mistake 6: Moving the consignment to an ICD without retaining adequate proof of compliance at the entry port. The amendment expressly requires proof to be produced at the ICD.
Mistake 7: Assuming the exemption also removes environmental, product-specific, or other Customs requirements. Those requirements must be assessed independently.

Business and Industry Implications

The revised framework may benefit India's metal recycling sector, scrap importers, secondary metal manufacturers, foundries, and other businesses that use imported metallic waste and scrap as industrial input.

• Greater Port Flexibility

The inclusion of Hazira, Kamarajar, and Adani Gangavaram creates additional entry-port options for qualifying consignments.

Businesses may be able to review import routes based on proximity to industrial facilities, transport connectivity, logistics arrangements and port-handling considerations.

• Improved Clarity for Inland Businesses

The express ICD provision is particularly relevant to importers whose manufacturing or processing facilities are located away from the coast.

It clarifies that an eligible shipment need not lose the PSIC exemption solely because Customs clearance for home consumption takes place at an ICD rather than at the entry seaport.

• Potential Operational Efficiencies

Eligible importers may be able to avoid the separate PSIC process where all exemption conditions are satisfied.

Depending on individual shipment arrangements, this could reduce certain certification-related administrative activities.

However, actual time and cost savings will depend on supplier readiness, port procedures, documentation completeness, screening processes, and Customs clearance arrangements.

• Continued Focus on Import Safety

Despite the expanded exemption, DGFT has retained the central safeguards concerning radioactive materials, explosives, shipment routing, and screening at the entry port.

The revised provision therefore combines trade facilitation with continuing safety controls.

Important Clarifications Regarding Implementation

• Effective Date: Public Notice No. 35/2026-27 is dated 21 October 2026. The notice does not separately state a prospective commencement date, or a detailed transitional arrangement. Importers dealing with shipments already dispatched in transit or awaiting Customs clearance should confirm the applicable implementation position with the relevant authorities.
• Certificate Format: The notice requires certification by the supplier or scrap yard authority but does not prescribe a new detailed certificate template within the amendment.
• ICD Evidence: The notification expressly requires proof of compliance at the ICD but does not identify an exhaustive list, or standard form of acceptable evidence.
• Scope of Clearance: The express ICD provision concerns Customs clearance for home consumption. Businesses should not assume that every other Customs procedure receives identical treatment without checking the applicable provisions.
• Other Approvals: The notice should not be interpreted as granting exemptions from independent statutory obligations or permissions applicable to particular types of waste or scrap.

Recommended Immediate Action for Businesses

Importers and businesses dealing in metallic scrap should review their existing import compliance procedures in light of the amended provision.

In particular, companies should update their internal PSIC eligibility checks, review shipments proposed through the three newly included seaports and establish documentation controls for consignments intended for ICD clearance.

Procurement teams should communicate the supplier-certificate requirement to overseas scrap vendors, while logistics and Customs teams should review port-entry and safety-screening documentation arrangements.

For complex shipment routes, unclear origin documentation or pending consignments, businesses should obtain appropriate clarification before relying on the exemption.

The objective should be to ensure that every claim of PSIC exemption is supported by verifiable shipment facts and records demonstrating compliance with the amended provision.

Focus Area

DGFT Public Notice No. 35/2026-27 dated 21 October 2026, represents an important development in the regulatory framework governing imports of metallic waste, and scrap into India.

By expanding the designated seaports for PSIC exemption from eight to eleven, and expressly recognising eligible Customs clearance for home consumption at Inland Container Depots the amendment provides greater flexibility and regulatory clarity for qualifying import consignments.

At the same time, the government has maintained the essential safeguards relating to safe-country origin, supplier, or scrap yard certification, mandatory radiation and explosive checks and restrictions on trans-shipments.

For importers, the key requirement is to verify eligibility before claiming exemption and maintain appropriate documentary evidence throughout the import, and Customs clearance process.

Businesses that align their procurement, shipping, port-entry and Customs documentation practices with the amended framework will be better positioned to benefit from the exemption while managing regulatory risks.