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Indian Recyclers Seek End to Pre-Shipment Inspection for Scrap

India’s recyclers have asked the government to scrap overseas pre-shipment inspection of imported metal scrap, Reuters reported on September 28. In a letter dated September 19, the Material Recycling Association of India asked the Directorate General of Foreign Trade to inspect shipments at Indian ports instead.

India imports about 13 million metric tons of recyclable metal scrap a year from more than 160 countries. About 2,500 containers arrive every day.

MRAI said many source countries have no authorised inspection agency, or inspection rests with a single agency. It said the present agency model cannot realistically build genuine inspection infrastructure.

It warned of container pile-ups, detention and demurrage charges, broken supply contracts and higher raw material costs if rules stay unchanged. Coal and Mines Minister G Kishan Reddy has said the Centre is preparing an incentive scheme, with about Rs 34,000 crore for critical mineral development.

MRAI president Sanjay Mehta said the industry wants stronger inspection inside India, not less inspection. The DGFT did not respond to Reuters’ request for comment. The outcome matters for India’s recycling push and for manufacturers who depend on affordable scrap imports.

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