DGFT Expands PSIC Exemption for Metallic Scrap to 11 Seaports and Adds ICD Clearance

Importers of metallic waste and scrap from "safe" origin countries have a meaningful easing to work with. Through Public Notice No. 35/2026-27, dated 21 October 2026, the Directorate General of Foreign Trade (DGFT) has widened the Pre-Shipment Inspection Certificate (PSIC) exemption for such scrap: the list of designated seaports where the exemption applies rises from 8 to 11, and — for the first time — the exemption now extends to home-consumption clearance at an Inland Container Depot (ICD), provided the consignment entered India through one of the designated seaports.

This is a facilitation measure, in contrast to the recent tightening of PSIC timelines and the de-recognition of inspection agencies. It cuts a compliance step for compliant, well-sourced scrap and opens up inland clearance options for importers who do not want to clear at the gateway port.

What Happened

Metallic waste and scrap imports into India ordinarily require a PSIC — a certificate from a recognised Pre-Shipment Inspection Agency (PSIA) confirming the consignment is free of radioactive material, explosives and other contraband. DGFT has long exempted shredded and unshredded scrap sourced from a defined set of safe countries/regions when imported through designated seaports. Public Notice 35/2026-27 updates that framework in two ways:

1. More seaports. The number of designated seaports eligible for the PSIC exemption increases from eight to eleven.
2. ICD clearance allowed. The exemption now also covers home-consumption clearance at an ICD, as long as the consignment first entered through one of the designated seaports and meets all the exemption conditions at that port of entry.

The eligible origin list is unchanged: the USA, UK, Canada, New Zealand, Australia and the European Union.

Why / Background

The PSIC regime exists to keep dangerous material — radioactive sources, live ammunition, explosives — out of imported scrap. For scrap from established, well-regulated supply chains, the government has accepted that port-based radiation and explosive screening, combined with supplier/scrap-yard self-certification, provides adequate assurance without a separate pre-shipment certificate. Extending the facility to more seaports and to ICDs reflects rising scrap import volumes and the practical reality that many importers consolidate and clear cargo inland, closer to their melting or manufacturing units, rather than at the gateway port.

Who Benefits

• Metal recyclers, foundries, steel mills and secondary producers importing ferrous and non-ferrous scrap from the six safe origins.
• Importers who clear at or near their plants, who can now take exempted scrap to a designated-seaport entry and complete home-consumption clearance at an ICD.
• Customs House Agents and forwarders handling scrap clearances, who gain more routing flexibility.

Operational Detail

Designated seaports (now 11): Chennai, Tuticorin, Kandla, Jawaharlal Nehru Port (JNPT), Mumbai, Krishnapatnam, Mundra, Kattupalli, Hazira, Kamarajar and Adani Gangavaram.

Conditions that continue to apply:

• The exemption covers both shredded and unshredded metallic waste and scrap.
• The supplier or scrap-yard authority must certify that the material contains no radioactive materials or explosives.
• Consignments must still undergo radiation and explosive screening through portal monitors and container scanners at the designated seaport of entry.
• Trans-shipment through the safe countries/regions does not qualify — the goods must genuinely originate from the eligible source.
• For ICD clearance, the consignment must enter through a designated seaport, all exemption conditions must be satisfied at the port of entry, and the importer must furnish proof of that compliance at the ICD.

Imports through any port not on the designated list remain subject to the normal PSIC requirement, regardless of origin.

What Importers and CHAs Should Do Now

• Map your scrap sourcing against the six eligible origins and the 11 designated seaports before booking, so you qualify for the exemption at the point of entry.
• If you prefer inland clearance, plan the routing so the cargo enters through a designated seaport and then moves to the ICD under the exemption, and keep the port-of-entry screening and self-certification records to present at the ICD.
• Retain the supplier/scrap-yard no-radioactive-material / no-explosives certification with each consignment.
• Confirm the exact ITC(HS) codes for your scrap grades (ferrous scrap in Chapter 72, copper in 74, aluminium in 76) and that your clearance documentation reflects the exemption claim.
• Read the full Public Notice on the DGFT portal — this summary is based on trade reporting, and the operative conditions and any annexure of ports should be verified against the official text.

The Bigger Picture

Scrap policy in 2026 has pulled in two directions: DGFT tightened the PSIC issuance process (two-day upload timelines, the de-recognition of around 15 inspection agencies) while customs clearance disruptions hit importers using certificates from delisted agencies. Public Notice 35/2026-27 moves the other way for well-sourced scrap — reducing friction for consignments from trusted origins and giving importers inland clearance flexibility. The net message for importers is to lean into compliant, documented supply chains from the eligible origins, where the regulatory burden is now lightest.

Frequently Asked Questions

Which countries/regions qualify for the exemption? The USA, UK, Canada, New Zealand, Australia and the European Union.

Does the exemption remove all checks? No. Radiation and explosive screening still happens at the designated seaport, and the supplier/scrap-yard must certify the cargo is free of radioactive material and explosives. Only the separate pre-shipment certificate is dispensed with.

Can I now clear exempted scrap at an ICD? Yes, for home consumption, provided the consignment entered through a designated seaport, met all conditions there, and you can furnish proof of compliance at the ICD.

What if I import through a non-designated port? The standard PSIC requirement applies, whatever the country of origin.

Does trans-shipment through a safe country qualify? No. Trans-shipment through the eligible countries/regions does not qualify; the goods must originate there.

Conclusion

DGFT's Public Notice 35/2026-27 is a welcome easing for importers of metallic scrap from trusted origins: three more designated seaports and, significantly, ICD home-consumption clearance under the PSIC exemption. The underlying safety checks remain, so the path to the lighter compliance burden runs through eligible origins, designated ports and clean documentation.

This summary is for general guidance only. Importers should rely on the full text of DGFT Public Notice No. 35/2026-27 and the Handbook of Procedures on the official DGFT portal (dgft.gov.in) before making sourcing or clearance decisions.