PSIC Exemption for Scrap Imports Covers Eligible ICD Clearances, DGFT Clarifies

Summary

DGFT has clarified that eligible metallic scrap imports can retain exemption from a Pre-Shipment Inspection Certificate when cleared at an Inland Container Depot. The consignments must enter through specified seaports, satisfy certification and safety-check requirements there, and carry proof of compliance to the ICD for Customs clearance.

Entry-port compliance determines eligibility

The PSIC exemption for scrap imports applies to qualifying consignments cleared for home consumption at an Inland Container Depot, provided the prescribed conditions are fulfilled at the designated entry seaport.

The Directorate General of Foreign Trade issued the clarification through Public Notice No. 35/2026-27, dated 21 October 2026, amending paragraph 2.51(d)(v)(iv) of the Handbook of Procedures, 2023.

The revised provision establishes a distinction between the gateway through which cargo enters India and the Customs location where it receives final clearance. An eligible consignment can move to an ICD for clearance, but its exemption depends on compliance at the entry port.

For inland importers, Customs brokers and container logistics operators, the amendment provides clearer wording on how the certificate exemption continues to apply when clearance takes place away from the coast.

Six countries and regions remain covered

The exemption covers both shredded and unshredded metallic waste and scrap imported from the United States, United Kingdom, Canada, New Zealand, Australia and the European Union.

A certificate issued by the supplier or scrap-yard authority must accompany the consignment, confirming that it contains no radioactive material or explosives.

The exemption also remains conditional on mandatory radiation and explosive checks through portal monitors and container scanners at the specified Indian seaports.

Trans-shipments through the designated countries or regions do not qualify for the facility. Routing cargo through an eligible location therefore does not, by itself, establish entitlement.

The general requirement for a PSIC from the country of origin remains in place outside the conditional exemption.

Eleven seaports specified in the provision

The amended text names eleven entry seaports: Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra, Kattupalli, Hazira, Kamarajar and Adani Gangavaram.

Eligible cargo may be cleared for home consumption at the designated entry seaport itself. Alternatively, clearance may take place at an ICD after the conditions have been satisfied at the gateway port.

For the ICD route, proof of that compliance must be produced at the inland clearance location. The provision therefore connects the coastal screening process with inland Customs documentation.

Operationally, this places importance on coordination between the importer, supplier, gateway handling arrangements and the Customs broker processing the inland clearance. The cargo’s physical movement and its supporting evidence must remain aligned throughout that process.

Earlier amendments already recognised eleven gateways

The eleven-port list should be read alongside earlier policy changes. DGFT Public Notice No. 43/2023, dated 14 February 2024, had already added Adani Gangavaram to the designated scrap-import gateways and to the ports eligible for the conditional PSIC exemption.

That earlier amendment increased the exemption’s port coverage from ten to eleven. It also increased the wider list of designated scrap-import seaports from eighteen to nineteen.

Consequently, the October 2026 development is best understood primarily as clarification of the exemption’s scope and its application to ICD clearance. Describing all eleven gateways as newly eligible would overlook the earlier amendment.

This background matters for businesses reviewing routing options: the latest wording addresses how eligibility operates across the entry-port and inland-clearance stages, within an established system of designated gateways and safety controls.

Inland clearance retains a coastal screening requirement

For manufacturers receiving imported scrap through inland logistics networks, the clarification provides a more explicit basis for using ICD clearance while retaining the conditional exemption.

However, it does not transfer the prescribed gateway checks to the destination ICD. The entry seaport remains the location where the stated certification, screening and routing conditions must be satisfied.

The commercial implication is greater procedural certainty when arranging eligible shipments. Any benefit in clearance time or cost will depend on the consignment, available screening arrangements, documentation and Customs processing; the notice does not quantify savings.

The change also preserves the safety purpose of the framework. Exemption from the pre-shipment certificate continues to operate alongside supplier certification, mandatory arrival checks and

FAQs

What is a PSIC?

A Pre-Shipment Inspection Certificate required under the applicable metallic scrap import procedures, subject to specified exemptions.

Can eligible scrap be cleared at an ICD without a PSIC?

Yes, provided all exemption conditions are satisfied at the designated entry seaport and proof is supplied at the ICD.

Are arrival safety checks still required?

Yes. Mandatory radiation and explosive checks remain part of the exemption conditions.

Does trans-shipment through an eligible country qualify?

No. Such trans-shipments are expressly excluded from the exemption.

Were all eleven seaports newly added in October 2026?

No. An earlier February 2024 amendment had already brought the exemption’s port coverage to eleven.