Metal Scrap Import Registration: SIMS, PSIC and Customs Compliance
Importing ferrous or non-ferrous scrap into India needs more than an IEC. Each consignment needs a pre-shipment inspection certificate from a DGFT-recognised agency, steel scrap needs a SIMS registration before it lands, and unshredded scrap can enter only through 18 designated ports. We handle the registrations and paperwork.
What it is
There is no single “scrap licence” in India. Metal scrap import is freely allowed for most metals, but only when a set of conditions is met for every shipment. When people say “scrap import registration”, they mean meeting all of those conditions.
The conditions come from three sources. Paragraph 2.51 of the Handbook of Procedures 2023 sets the PSIC and port rules. Policy Condition 5 of Chapter 72 of ITC(HS), inserted by DGFT Notification 33/2015-20 dated 28 September 2020, requires registration on the Steel Import Monitoring System (SIMS) on the DGFT portal. And the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 decide which scrap is allowed at all.
Check which route your scrap takes
Under paragraph 2.51 of the Handbook of Procedures, the form of the scrap decides the port and the paperwork. No scrap of any kind may contain hazardous or toxic waste, radioactive contamination, arms, ammunition, mines, shells, cartridges or other explosive material.
| Scrap form | Where it can land | What must accompany it |
|---|---|---|
| Shredded scrap of listed metals (iron, steel, copper, brass, aluminium, zinc, nickel, tin, magnesium and others) | Any port | PSIC confirming radiation is not above natural background levels |
| Unshredded, compressed or loose scrap | Only the 18 designated sea ports | PSIC, plus a certificate that the consignment has no explosives or arms, and a copy of the contract stating the same |
| Scrap from the USA, UK, Canada, New Zealand, Australia or the EU | Eight named ports (Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra, Kattupalli) | Supplier certificate that it has no radioactive material or explosives, instead of a PSIC; Customs scanning applies |
The 18 designated ports are Chennai, Cochin, Ennore, JNPT, Kandla, Mormugao, Mumbai, New Mangalore, Paradip, Tuticorin, Visakhapatnam, Pipavav, Mundra, Kolkata, Krishnapatnam, Kattupalli, Hazira and Kamarajar.
Picture a Faridabad foundry buying unshredded heavy melting scrap from a Gulf supplier. The origin is not on the exempt list and the scrap is not shredded. So it needs a PSIC, it must land at one of the 18 ports, and it needs a SIMS number before the ship docks.
Who it applies to
Steel mills and foundries
Induction furnace units, re-rolling mills and foundries buying steel scrap from abroad. Steel scrap falls in Chapter 72, so SIMS registration applies.
Non-ferrous recyclers
Units melting copper, brass, aluminium or zinc scrap need the PSIC and port compliance, plus a valid hazardous waste authorisation and, in Haryana, consent to establish and operate from HSPCB.
Traders importing for actual users
A trader importing scrap listed in Part D of Schedule III on behalf of actual users needs a one-time authorisation in Form 7 under Rule 13 of the 2016 rules.
Why it matters
Customs will not clear without it
Customs checks the PSIC, the SIMS number and the Schedule VIII documents before clearance. One missing paper, and the container sits at the port while demurrage runs.
Some scrap cannot come in at all
Rule 12(6) of the 2016 rules bans import of wastes in Schedule VI, such as metal wastes of arsenic, beryllium, mercury, selenium or thallium. Rule 12(1) bans any waste import for disposal.
Clean records protect your IEC
Clean shipments keep your Import Export Code and DGFT profile in good standing.
Documents required
From the importer
- IEC, PAN and GST registration
- Certificate of incorporation or partnership deed
- A class 3 digital signature of the authorised signatory
For each shipment
- Purchase contract stating the scrap has no explosives or radioactive material
- Commercial invoice, packing list and bill of lading
- PSIC issued online by a recognised PSIA
- SIMS registration number for steel items
For the waste rules
- Form 6 information for Customs (Part D scrap)
- Form 7 one-time authorisation, if you are a trader
- Hazardous waste authorisation and consents of the actual user, where applicable
How it works
Classify the scrap correctly
We match your scrap to its 8-digit ITC(HS) code and check it against Schedule III Part D and Schedule VI of the 2016 rules.
Put the base registrations in place
We confirm your IEC is active and updated for the year, get a DSC ready, and file Form 7 if you import as a trader on behalf of actual users.
Line up the inspection with your supplier
Your overseas supplier books a DGFT-recognised PSIA from Appendix 2G. The PSIA inspects, tests for radiation, photographs the container stuffing and sealing, and issues the PSIC online in the Appendix 2H format.
Register on SIMS before arrival
For steel items we file the SIMS registration on the DGFT portal with the invoice details and pay the fee. The registration number goes on your bill of entry.
Hand Customs a complete file
We prepare the Form 6 declaration and the document set with your customs broker, so the bill of entry is filed once and filed right.
Timelines
SIMS registration
File up to 60 days before the expected arrival of the goods. DGFT’s FAQ says the registration number is valid for 75 days.
One registration per bill of entry
SIMS works shipment by shipment. A new registration is needed for each customs entry.
PSIC
Issued before the container is shipped. Since 1 July 2022, PSICs must be generated online on the DGFT system (Trade Notice 03/2022-23).
What happens if the paperwork is wrong
Shipment held at the port
Without a valid PSIC, SIMS number or Form 6, Customs will not clear the bill of entry. Here is the catch: unshredded scrap that lands at a non-designated port cannot be cleared there.
Penalty under the EP Act
A breach of the 2016 rules is punishable under Section 15 of the Environment (Protection) Act, 1986 with a penalty from ₹10,000 up to ₹15 lakh, plus up to ₹10,000 for each day the breach continues.
Prohibited scrap
Schedule VI wastes cannot be imported at all. If a consignment contains them, the importer bears the action and the cost.
Frequently asked questions
Is there a separate licence to import metal scrap into India?
No. Most metal scrap is freely importable, so there is no special import licence. Instead, every shipment must meet conditions: an active IEC, a pre-shipment inspection certificate, SIMS registration for steel scrap, the right port, and the Customs declarations under the 2016 waste rules. After the first shipment, the rest follow the same checklist.
What does SIMS stand for, and does it apply to steel scrap?
SIMS is the Steel Import Monitoring System on the DGFT portal. DGFT Notification 33/2015-20 dated 28 September 2020 made SIMS registration a policy condition for imports under all HS codes in Chapters 72, 73 and 86. Ferrous waste and scrap sits in Chapter 72, so steel scrap needs a SIMS registration. The fee is ₹1 per ₹1,000 of CIF value, with a minimum of ₹500 and a maximum of ₹1 lakh.
Who issues the pre-shipment inspection certificate?
A pre-shipment inspection agency recognised by DGFT and listed in Appendix 2G of the Handbook of Procedures issues it. Agencies are recognised for three years. The PSIC is generated online in the Appendix 2H format, and since 1 July 2022 a certificate not generated through the DGFT system may not be accepted by Customs.
Can unshredded scrap come in through any port?
No. Unshredded, compressed or loose scrap can be imported only through the 18 designated sea ports listed in paragraph 2.51, such as JNPT, Mundra, Kandla, Chennai and Kolkata. These ports have radiation portal monitors and container scanners. The Handbook allows no exception for EOUs or SEZs. Shredded scrap of listed metals can come through any port with a valid PSIC.
Do I need permission from the Environment Ministry?
No, not for ordinary metal scrap listed in Part D of Schedule III of the 2016 rules, such as iron, steel, copper or aluminium scrap in metallic, non-dispersible form. For Part D you give the information in Form 6 to Customs instead. Wastes in Parts A and B of Schedule III need the Ministry’s permission through a Form 5 application by the actual user. We classify your scrap first, so the route is clear.
Can scrap from the US or Europe skip the PSIC?
Yes, on conditions. Paragraph 2.51 lets scrap from the USA, UK, Canada, New Zealand, Australia and the EU come in without a PSIC through eight named ports, including JNPT, Mundra and Chennai. The supplier must certify that it has no radioactive material or explosives, and Customs scanning still applies. Outside those origins or ports, a PSIC is needed, and we check this before you sign the contract.
Do traders need anything extra?
Yes. A trader importing Part D scrap on behalf of actual users needs a one-time authorisation in Form 7 under Rule 13 of the 2016 rules. The actual users who buy and process the scrap must hold their own authorisation and consents from their State Pollution Control Board. In practice, a Delhi trader supplying several Haryana furnaces holds the Form 7, and each furnace holds its own consents.
What exactly does Taxhint do, and who does the inspection?
We handle the regulatory work: classification checks, IEC and DSC readiness, SIMS registration, Form 6 and Form 7 paperwork, and liaison with your customs broker and the authorities. Inspection, radiation testing and the PSIC are done by the DGFT-recognised agency your supplier appoints. Customs clearance is filed by a licensed customs broker. Our job is to make sure their papers and yours say the same thing.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Government fees we can confirm today: SIMS registration costs ₹1 per ₹1,000 of CIF value, with a minimum of ₹500 and a maximum of ₹1 lakh. The PSIC fee is charged by the inspection agency.
Ready to begin?
Send us the HS code, the origin and the port you plan to use. We will tell you exactly which papers each shipment needs.