The Indian government is considering a relaxation of the mandatory pre-shipment inspection certificate (PSIC) regime for imported metal scrap, a government official said on Tuesday, September 22.
The recycling industry has argued that the PSIC regime has disrupted scrap imports and affected the operations of recyclers and manufacturers.
The PSIC is issued by Pre-Shipment Inspection Agencies (PSIAs), which are inspection bodies formally registered and approved by India's Directorate General of Foreign Trade (DGFT). Their primary role is to visually check and test imported goods, which most commonly include metallic waste and scrap, at the port of loading before they are shipped to India. This ensures the cargo complies with Indian safety standards and does not contain unauthorised hazardous elements, explosives or illegal radioactive materials.
The recycling industry says that physical verification is time-consuming and leads to delays in delivery and even consignments getting stuck at ports.
It has sought its abolition and replacement with an India-based, technology-driven inspection mechanism at designated ports equipped with scanning and inspection infrastructure.
According to estimates of the Material Recycling Association of India (MRAI) 2,500 scrap containers are handled daily and overseas inspection and documentation costs are about $200 per container.
It estimates that shifting verification to ports in India could save about $500,000 in foreign exchange outgo every day, apart from reducing delays and logistics costs.
