Guide
Metal scrap is imported for melting and recycling, but several rules sit on top of the duty: quality standards, waste rules, and policy. This guide lists the checks we make before you buy.
Last checked: November 2026
Sources: National Recycling Corporation article dated 20 September 2026, and the Customs, DGFT and environment ministry notifications.
Please note: The duty rates and the nil-duty position for 2026-27 are from one trade article that itself says the position is not confirmed. Read the current CBIC notification and the Customs Tariff before you buy.
The short answer
- Duty depends on the metal and on any exemption notification in force. The article reports a standard basic duty of 2.5% on common ferrous and non-ferrous scrap headings and nil on some, and an exemption for steel melting scrap that ran to 31 March 2026. We do not rely on that without the current notification.
- Under the Foreign Trade Policy most ferrous scrap is reported as Free, while some non-ferrous scrap is Restricted and needs a DGFT authorisation.
- Hazardous material for recycling needs environment ministry permission under the Hazardous and Other Wastes Rules, 2016, as reported.
- Quality Control Orders under the BIS Act can hold consignments at the port.
Checks before you buy
- Identify the scrap and its code. Ferrous, stainless, copper, aluminium and mixed scrap are treated differently.
- Read the policy for that code: Free, Restricted or Prohibited.
- Check the duty and exemptions on the date of import.
- Check waste rules. Material that may be hazardous waste needs a separate permission, and the time needed can be long.
- Check BIS and other quality orders that may apply to the grade.
- Check inspection and radiation requirements. Trade sources report pre-shipment inspection and radiation checks for metal scrap. Confirm the current requirement and ports.
- Check the supplier. Ask for the grade, origin and test details in writing.
Documents we usually ask for
- Commercial invoice, packing list and bill of lading
- Pre-shipment inspection certificate, where required
- Certificate of origin
- Supplier declaration of grade and composition
- Import authorisation, where the policy requires it
- Environment ministry permission, where it applies
- IEC and GST details
The exact list depends on the goods and the port. We confirm it for your case.
Mistakes to avoid
- Buying mixed or contaminated scrap that may be treated as waste
- Assuming the exemption of last year still applies
- Ignoring the grade rules until the cargo is at the port
- Forgetting that IGST credit needs a valid GST registration
How we help
- Check policy, duty and permissions for your scrap grade
- Review the supplier papers before you buy
- Prepare Customs documents
- Reply to Customs queries and handle port holds
Next step
Send two lines on WhatsApp (+91 93733 11838) or email (info@multimodal.biz) telling us what you need. We reply with what is required and quote our fee in writing after we see your details. You pay only after you have understood the plan and agreed the fee.
Questions
Is scrap import free?
Ferrous scrap is reported as Free and some non-ferrous scrap as Restricted. Check the code.
Is there customs duty on scrap?
It depends on the metal and the notification in force. Do not rely on last year's position.
Do I need a permission for hazardous scrap?
As reported, yes, from the environment ministry. We check whether your material is covered.
Why do scrap cargoes get held?
Common causes are grade mismatch, missing inspection papers, and quality or waste rules.
Multimodal Logistic Systems Pvt. Ltd., Pune, India. Last checked: November 2026. Laws, notifications and portal procedures change; we check those in force on the date of your matter. This post is general information, not legal advice.