The Hindu Business Line : Import of metallic scrap — Finance Ministry opposes DGFT alteration of policy

THE Finance Ministry on Monday said that import of "uncompacted loose metallic scrap" should not be allowed through any major ports or inland container depots (ICDs) as it would not be possible for Customs officials to detect explosives in heavy consignments of metallic scrap.

The Ministry is of the view that only import of "compacted and shredded scrap" should be allowed.

This latest stand of the Finance Ministry is in sharp contrast to the import policy alterations made by the Director-General of Foreign Trade (DGFT) last Saturday.

On October 9, the DGFT tightened the import policy for metallic waste and scrap as a fallout of the recent explosion at the Ghaziabad facility of Bhushan Steel.

It altered the import policy to specify that import of metallic waste and scrap would be permitted only in "shredded and compacted" form.

However, it also said that metallic waste and scrap in "unshredded and uncompacted form" could also be imported as long as the imports are routed through the "major ports" and ICD, Tughlaqabad.

While the DGFT held that the Customs authorities shall carry out "100 per cent inspection" of such unshredded and uncompacted materials, the Customs authorities have expressed reservations on doing so. A Finance Ministry release said that the assistance of forensic experts at major locations has been sought and that the Customs officials have neither the expertise nor proper equipment to handle explosives and radioactive materials.

The Ministry also said that the Customs authorities are being advised to call a meeting of importers of such scrap at the ports/ICDs in their jurisdiction and to advise them to approach the jurisdictional police authorities to provide assistance of forensic experts and bomb disposal squads, who can segregate the explosive materials from the normal cargo and defuse the same. "The trade, however, will have to pay the normal fee for such assistance to police authorities," the release said.

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