Quick Summary
The Directorate General of Foreign Trade (DGFT) has clarified that eligible imports of metallic waste and scrap from designated safe countries and regions can qualify for exemption from the Pre-Shipment Inspection Certificate (PSIC) requirement even when customs clearance for home consumption takes place at an Inland Container Depot (ICD).
Issued through Public Notice No. 35/2026-27 dated 21 October 2026, the amendment also expands the list of designated entry seaports from eight to eleven. However, importers must meet the prescribed certification, port-entry and safety-screening conditions to claim the exemption.
Key Highlights
- DGFT issued Public Notice No. 35/2026-27 on 21 October 2026.
- The exemption covers eligible shredded and unshredded metallic waste and scrap.
- Designated origins include the USA, UK, Canada, New Zealand, Australia and the European Union.
- The list of designated entry seaports has expanded to eleven.
- Eligible consignments can be cleared for home consumption at an ICD if all prescribed conditions are met.
- Mandatory radiation and explosive checks remain in place.
- Trans-shipments through designated safe countries or regions are not eligible for the exemption.
What Has DGFT Changed in the PSIC Rules for Metal Scrap Imports?
DGFT has amended paragraph 2.51(d)(v)(iv) of the Handbook of Procedures (HBP), 2023, under the Foreign Trade Policy (FTP), 2023.
Under the amended provision, the general requirement for a Pre-Shipment Inspection Certificate remains applicable to metallic waste and scrap imports. However, eligible consignments originating from designated safe countries and regions can qualify for exemption if they satisfy the specified conditions.
The key clarification is that the exemption applies not only to customs clearance at the designated entry seaport but also to clearance for home consumption at an Inland Container Depot.
For ICD clearance, the prescribed conditions must be fulfilled at the port of entry, and the importer must provide proof of compliance at the ICD.
This clarification gives importers and customs brokers greater certainty when planning inland cargo clearance. It does not remove the other import restrictions or safety requirements applicable to metallic scrap.
What Is a Pre-Shipment Inspection Certificate (PSIC)?
A Pre-Shipment Inspection Certificate is a document required under India’s import framework for specified metallic waste and scrap consignments. It helps establish compliance with applicable inspection requirements before shipment.
The inspection framework is important because imported scrap may pose risks associated with radioactive contamination, explosives or other prohibited materials.
Under the specified exemption, eligible consignments must instead be accompanied by a certificate from the supplier or scrap yard authority confirming that the material does not contain radioactive materials or explosives.
Importers must understand that exemption from PSIC does not mean exemption from safety checks. The prescribed radiation and explosive screening at designated entry seaports remains mandatory.
Which Countries Qualify for the PSIC Exemption?
Metallic waste and scrap imported from the following designated safe countries or regions may qualify for the exemption:
- United States of America (USA)
- United Kingdom (UK)
- Canada
- New Zealand
- Australia
- European Union (EU)
The exemption covers both shredded and unshredded metallic waste and scrap, subject to the prescribed conditions.
However, the country through which cargo passes is not necessarily its country of origin. DGFT has expressly stated that trans-shipments through the designated safe countries or regions will not qualify for the exemption.
Importers should therefore verify the shipment’s origin and routing before relying on the PSIC exemption.
List of 11 Designated Seaports for Metal Scrap Imports
The amended DGFT provision identifies the following eleven entry seaports for eligible metallic waste and scrap consignments:
| No. | Designated seaport |
| 1 | Chennai |
| 2 | Tuticorin |
| 3 | Kandla |
| 4 | Jawaharlal Nehru Port (JNPT) |
| 5 | Mumbai |
| 6 | Krishnapatnam |
| 7 | Mundra |
| 8 | Kattupalli |
| 9 | Hazira |
| 10 | Kamarajar |
| 11 | Adani Gangavaram |
The expansion adds Hazira, Kamarajar and Adani Gangavaram to the previous list of eight designated ports.
All eligible consignments must undergo the prescribed radiation and explosive checks using portal monitors and container scanners at the designated entry port.
Entry through one of these ports alone does not guarantee an exemption. The origin, supplier certificate and other applicable conditions must also be satisfied.
How Does the PSIC Exemption Apply to ICD Customs Clearance?
An Inland Container Depot is an inland facility where import cargo can undergo customs clearance procedures, subject to applicable regulations and operational arrangements.
The DGFT amendment expressly permits eligible metallic scrap consignments to be cleared for home consumption at an ICD without a PSIC, provided the conditions specified in the amended provision have been met at the entry seaport.
Practical example
Consider an Indian importer bringing metallic scrap from the United States through Mundra Port and planning to clear the shipment for home consumption at an ICD.
The consignment may qualify for the PSIC exemption if:
- The supplier or scrap yard authority provides the required certificate confirming the absence of radioactive materials and explosives.
- The cargo enters India through Mundra, which is a designated seaport.
- The prescribed radiation and explosive checks are completed at the entry port.
- The shipment is not an excluded trans-shipment through a designated safe country or region.
- Documentary proof of compliance at the entry port is provided at the ICD.
If all these conditions are met, the importer may claim the exemption during the eligible ICD clearance process, subject to applicable Customs requirements and verification.
The example illustrates how the rule operates; actual eligibility depends on the specific shipment and supporting documentation.
What Importers and Customs Brokers Should Do
The amendment makes documentation, shipment routing and coordination between the entry port and ICD particularly important.
1. Verify the country of origin
Confirm that the shipment originates from an eligible country or region. Do not assume that routing cargo through an eligible country automatically qualifies it for the exemption.
2. Obtain the supplier certificate
Ensure that the supplier or scrap yard authority issues the prescribed certificate confirming that the consignment does not contain radioactive materials or explosives.
3. Confirm the designated entry port
Verify that the shipment enters India through one of the eleven ports specified in the amended provision.
4. Confirm safety-screening compliance
Coordinate with the relevant port and customs stakeholders to confirm that mandatory radiation and explosive checks have been completed.
5. Maintain evidence for ICD clearance
If the shipment will be cleared at an ICD, ensure that proof of compliance with the prescribed conditions at the entry port is available for submission at the ICD.
6. Check the applicable requirements before shipment
Where a shipment does not qualify for the exemption, the general PSIC requirement continues to apply. Importers should confirm the applicable rules before dispatch to avoid preventable clearance delays and additional costs.
Importers should also verify other applicable import restrictions and customs requirements for the specific commodity.
What Does the Amendment Mean for the Logistics Industry?
The DGFT clarification has practical implications for India’s metal recycling and logistics supply chains.
Greater clarity for ICD users: Importers can better assess whether eligible metallic scrap consignments may be cleared for home consumption at an ICD without obtaining a PSIC.
Improved documentation coordination: Importers, customs brokers, port operators and ICD teams need to coordinate certification and evidence of safety checks.
Potential compliance-cost savings: Eligible shipments may avoid the need to obtain a PSIC, although actual savings depend on the shipment and applicable costs.
Continued focus on cargo safety: Radiation and explosive checks remain mandatory at designated entry ports.
More careful shipment planning: Importers must verify origin, routing and port eligibility before dispatching cargo.
The practical value of the amendment lies in clarifying the scope of the exemption and expanding eligible port options while retaining the safeguards required for metallic scrap imports.
What Happens If a Shipment Does Not Qualify?
The PSIC exemption is conditional. A shipment may not qualify if it originates outside the designated safe countries or regions, enters through a non-designated port, lacks the required supplier certificate, fails to meet the prescribed safety conditions or falls within the excluded trans-shipment category.
In these circumstances, importers should not assume that the PSIC requirement has been waived. They should verify the applicable certification and import conditions before shipment or customs clearance.
The amendment also does not remove other restrictions applicable to metallic waste and scrap, including safeguards against radioactive contamination and prohibited materials.
Conclusion
DGFT Public Notice No. 35/2026-27 clarifies that the PSIC exemption for eligible metallic waste and scrap imports from designated safe countries and regions can also apply to home-consumption clearance at an Inland Container Depot.
The amendment expands the list of designated entry seaports from eight to eleven and provides greater clarity for importers using inland clearance facilities.
For importers and customs brokers, the priorities are to verify eligibility, obtain the prescribed supplier certificate, confirm completion of port-level safety checks and maintain documentary proof for ICD clearance.
The key takeaway: ICD clearance under the PSIC exemption is permitted only for eligible consignments that satisfy all prescribed conditions. The general PSIC requirement and mandatory safety checks continue to apply where relevant.
Frequently Asked Questions
1. What is the latest DGFT update on PSIC exemption for metal scrap imports?
DGFT Public Notice No. 35/2026-27, dated 21 October 2026, clarifies that eligible metallic waste and scrap imports can qualify for PSIC exemption even when cleared for home consumption at an ICD, subject to the prescribed conditions.
2. Which countries qualify for the PSIC exemption?
The designated safe countries and region are the USA, UK, Canada, New Zealand, Australia and the European Union. Both shredded and unshredded metallic waste and scrap are covered, subject to the applicable requirements.
3. Can metal scrap be cleared at an ICD without a PSIC?
Yes. Eligible consignments may be cleared for home consumption at an ICD if they enter through a designated seaport, meet the supplier-certificate and safety-screening requirements, and have supporting proof available at the ICD.
4. Is a supplier certificate required when PSIC is exempted?
Yes. The supplier or scrap yard authority must certify that the consignment does not contain radioactive materials or explosives. Mandatory safety checks at the designated entry port also remain applicable.
5. Does the exemption apply to trans-shipped cargo?
No. Trans-shipments through the designated safe countries or regions are excluded from the PSIC exemption. Importers should verify the origin and routing of the shipment before claiming the benefit.
6. Which ports are covered under the amended PSIC exemption?
The eleven designated seaports are Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra, Kattupalli, Hazira, Kamarajar and Adani Gangavaram.
