Paragraphs 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Paragraph 2.32 of the Policy lets metallic waste and scrap be imported only if the consignment carries no hazardous, radioactive or explosive material. Paragraph 2.33 deals with the opposite movement: scrap generated in a Special Economic Zone that is sold into the Domestic Tariff Area. The detailed procedure, including inspection certificates and designated ports, sits in paragraph 2.51 of the Handbook.
This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. The procedure is taken from Chapter 2 of the Handbook of Procedures, 2023 as published on the DGFT website (file of July 2026), consulted on 2 October 2026. Later Notifications and Public Notices should be checked.
Any form of metallic waste or scrap may be imported only on the condition that it contains no hazardous, toxic, radioactive or explosive material (paragraph 2.32(a) of the Policy). Fifteen kinds of scrap are listed in paragraph 2.51(a) of the Handbook and may be imported without an authorisation, but only with a pre-shipment inspection certificate on radiation and a contract clause, unless an exception applies. Un-shredded scrap can come in only through designated sea ports. Scrap of kinds not listed is governed by the conditions of ITC(HS), under paragraph 2.54 of the Handbook.
What paragraph 2.32 of the Policy says
Paragraph 2.32(a) is a condition, not a list. Whatever the form of the metallic waste or scrap, the consignment must not contain hazardous or toxic waste, radioactive contaminated waste or scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridges, or any other explosive material, used or otherwise. The paragraph says these are detailed in paragraph 2.51 of the Handbook.
The second part of the paragraph hands the rest to the Handbook. The types of scrap that may be imported without an authorisation, and the procedure for shredded, un-shredded, compressed and loose scrap, are laid down in paragraph 2.51. The Policy uses a different one-word label for items that need no authorisation; this article calls them items permitted without an authorisation. Where an item does need an authorisation, the restricted items import and export licence route applies.
Like the rest of the Policy, paragraph 2.32 is policy made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read in our article on section 5 of the FTDR Act. It names no other section of the Act.
Paragraph 2.33: scrap from a Special Economic Zone
Under paragraph 2.33, a SEZ unit, Developer or Co-developer may be allowed to dispose of in the Domestic Tariff Area any waste or scrap, including metallic waste and scrap, generated during manufacturing or processing, without an authorisation, on payment of the applicable Customs duty. The paragraph states no rate and no procedure. Duty is a matter for the Customs Act, 1962 and its notifications; the Policy only removes the need for an authorisation. A buyer of such scrap should ask for the Customs papers showing that the duty was paid.
What the Handbook requires: paragraph 2.51
Paragraph 2.51 of the Handbook repeats the paragraph 2.32 condition and then works through five sub-paragraphs. The Handbook rests on the Director General's power described in our article on section 6 of the FTDR Act.
| Sub-paragraph | What it covers |
|---|---|
| 2.51(a) | A table of fifteen kinds of scrap that may be imported without an authorisation, on the conditions that follow |
| 2.51(b) | Shredded scrap: through all ports, with an inspection certificate and a contract clause |
| 2.51(c) | Imports from Hodeidah in Yemen and Bandar Abbas in Iran: shredded form only |
| 2.51(d) | Un-shredded, compressed and loose scrap: certificate, contract, designated ports |
| 2.51(d)(v) | How a sea port becomes designated, and the exception for six countries or regions |
The fifteen kinds in paragraph 2.51(a)
The table lists, by description, scrap of cast iron, tinned iron or steel, high-speed steel, turnings and shavings of iron, re-melting scrap ingots, and scrap of copper, brass, nickel, aluminium, zinc, tin and magnesium. The table carries tariff codes. This article does not reproduce them; check the item's entry in ITC(HS) before importing.
Shredded scrap: paragraph 2.51(b)
Shredded scrap of the listed kinds may come in through all ports of India, subject to two things at the time of clearance. First, the importer must give Customs a pre-shipment inspection certificate in the format of Appendix 2H, from one of the inspection and certification agencies in Appendix 2G, saying the consignment was checked for radiation and does not exceed natural background (gamma and neutron). The certificate gives the background level at that place and the maximum level on the scrap. Second, the importer must give a copy of the contract with the exporter stating that the consignment contains no radioactively contaminated material in any form.
Un-shredded scrap: paragraph 2.51(d)
Un-shredded, compressed and loose scrap of the listed kinds needs four things.
- A pre-shipment inspection certificate in the format of Appendix 2H from an agency in Appendix 2G, saying the consignment has no arms, ammunition, mines, shells, cartridges or other explosive material and was checked for radiation (paragraph 2.51(d)(i)).
- The item must really be metallic waste, scrap, seconds or defective goods by internationally accepted parameters (paragraph 2.51(d)(ii)).
- A copy of the contract with a clause to the same effect (paragraph 2.51(d)(iii)).
- Entry only through the designated ports, with no exceptions even for EOUs and SEZs (paragraph 2.51(d)(iv)).
Paragraph 2.51(d)(iv) names eighteen ports: Chennai, Cochin, Ennore, JNPT, Kandla, Mormugao, Mumbai, New Mangalore, Paradip, Tuticorin, Vishakhapatnam, Pipava, Mundra, Kolkata, Krishnapatnam, Kattupalli, Hazira and Kamarajar.
How a port is designated: paragraph 2.51(d)(v)
Only entry sea ports are designated. A port must install Radiation Portal Monitors and a Container Scanner with adequate security and approach the jurisdictional Customs for inspection and certification; Customs may clear it on certification from AERB, and DGFT then notifies the port. The sub-paragraph also gave the then existing ports until 30.09.2021 to install the equipment, with de-recognition from 01.10.2021 for those that failed. Those dates are past, and this article does not say which ports met the deadline. An ICD can handle un-shredded scrap if it passes through a designated sea port, subject to risk-based scanning.
The six-country exception
Under paragraph 2.51(d)(v)(iv), consignments of metallic waste and scrap are subject to a pre-shipment inspection certificate from the country of origin. Scrap, shredded or un-shredded, from the USA, the UK, Canada, New Zealand, Australia and the EU does not need that certificate if cleared through eight named ports: Chennai, Tuticorin, Kandla, JNPT, Mumbai, Krishnapatnam, Mundra and Kattupalli. Instead the consignment carries a certificate from the supplier or scrap yard that it holds no radioactive material or explosives, and it is still checked by portal monitors and container scanners. Trans-shipments through these countries or regions do not get this facility. Import through the remaining eight ports, whatever the country of origin, is subject to the certificate.
The paragraph does not list the "remaining eight" ports by name, so confirm the port of discharge before booking the shipment.
Other kinds of scrap: paragraph 2.54
Paragraph 2.54 of the Handbook says that other kinds of metallic waste and scrap may be imported on the conditions of ITC(HS). Paragraph 2.32(a) still applies to them, since it covers any form of metallic scrap.
A worked example
Kaveri Recyclers Private Limited, an invented company, plans to import shredded brass scrap, a listed kind, from a supplier in the USA through Mundra. Mundra is one of the eight ports named in paragraph 2.51(d)(v)(iv) and the USA is one of the six countries, so the supplier's certificate can stand in for the pre-shipment inspection certificate. Kaveri should hold that certificate and the contract clause, and expect radiation and explosive checks at the port.
Need help with a restricted or conditional import?
If you are not sure whether your scrap is on the list in paragraph 2.51(a), or whether an import needs an authorisation, our team can read the ITC(HS) entry and the Handbook conditions with you. See our restricted items import and export licence service for applications and follow-up.
Key takeaways
- Paragraph 2.32(a) bars hazardous, toxic, radioactive and explosive material from any metallic scrap consignment.
- Fifteen kinds of scrap are listed in paragraph 2.51(a) of the Handbook; others follow ITC(HS) under paragraph 2.54.
- Shredded scrap needs the paragraph 2.51(b) certificate and contract; un-shredded scrap needs both and entry through designated ports.
- Six countries or regions are exempt from the certificate through eight named ports, on a supplier's certificate.
- Paragraph 2.33 lets SEZ scrap into the Domestic Tariff Area on payment of applicable Customs duty.
Read next
- Paragraph 2.31 of the Foreign Trade Policy, 2023: import policy for second hand goods
- Handbook of Procedures, 2023, paragraphs 2.52, 2.53 and 2.56: pre-shipment inspection agencies
- FTP 2023: the legal framework, and FTP against HBP
- Section 11 of the Customs Act, 1962: power to prohibit import or export of goods
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.