The Hindu Business Line : New scrap import norms upset non-ferrous metal sector

THE DGFT public notice curbing import of metal scraps clubbing both ferrous and non-ferrous metals has put the domestic non-ferrous metals trade in a quandary.

Non-ferrous metal importers are already suffering heavy demurrages and detention charges due to congestion at JNP/Nhava Sheva port.

The DGFT altered the import policy recently, permitting imports in shredded and compacted form only. The Customs authorities have been authorised to inspect 100 per cent shipments of scrap.

"Unfortunately, the Government has clubbed both ferrous and non-ferrous metals treating them as metallic waste and scrap. Ferrous scrap/waste imports are on a much larger scale in comparison to non-ferrous metals scrap. Materials already imported and in transit are covered under this notice by Customs officials," Mr Rohit Mehta, President of the Bombay Metals Exchange (BME), said.

"The Customs department does not have sufficient manpower for 100 per cent examination of each and every imported consignment. There is also shortage of space where the consignments can be emptied for examination. We also do not have enough infrastructure to examine the scrap 100 per cent," Mr Mehta said.

Most of the non-ferrous scrap is imported in as efficient manner as possible, he said.

Till date there has not been any kind of ammunition, dead or alive, detected/recovered from a consignment declared as non-ferrous metals scrap. Also, non-ferrous metals scraps are of high value, imported on a much smaller scale, when compared to the ferrous metals scrap. Almost all importers of non-ferrous metals scrap normally get one or two containers of non-ferrous metals scrap at a time from different parts of the world such as the US, the UK, Europe, and Australia, BME sources said.

"Importers of non-ferrous metals scrap have to pay a heavy price as demurrage and ground rent due to delays. Already the congestion problem has reached an alarming position with the shipping companies stopping completely accepting cargo," he added.

"There will be serious implications of many units closing down creating huge unemployment. We have, therefore, represented to the Union Commerce Minister and various departments concerned with concrete proposals," he said.

The proposals submitted to the Commerce Minister include: Necessity to separate ferrous and non-ferrous metals scrap under different category; Non-ferrous metals scrap should be exempted in full from the purview of notification; If the departments concerned are free they mayexamine 100 per cent on a random basis or the consignment should be released after examination of 25 per cent of cargo, instead of 10 per cent as a regular procedure for a trial period of 6 months subject to review and; any cargo from rebellion/war-affected countries should be subjected to pre-load inspection certificate by a recognised agency.

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