Customs Duties

While importation of all types of scrap is allowed into India, customs duty will be applicable based on description of goods. The rate of duty is 29 percent; this includes 5 percent basic duty, 16 percent counter veiling duty, 3 percent education cess (cess is an additional tax on paid duty), 2 percent counter veiling duty cess and 4 percent special additional duty. Generally, the customs authorities will order 25 percent of cargo to be inspected if the importer is a manufacturer and 50 percent inspection in the case of traders.

Additional Considerations

If the container is to be taken to the consignee’s factory, the consignee has to give a container deposit to the shipping line in the form of a banker’s check in case of damage to container or delay in returning the container. It is advisable for the consignee to arrange for his own independent surveyor to survey the condition of the container at the time of pick up from the custody of the shipping line and the condition at return.

The type of metal scrap that can be imported into India varies over time. One reason for concern is the recent arrival of live ammunition that caused explosions in furnaces. Such scrap is said to have been imported from war-affected areas. An inspection by an independent surveyor to certify that there is no ammunition of any kind would be advantageous.

Shipping lines are concerned about delay to their containers due to consignees not taking delivery of cargo. Consignees are known to speculate on the prices and then come for delivery. There have been cases of consignees threatening to abandon cargo if the container detention charges are not waived. Container detention charges can run up to substantial sums beyond the value of the cargo, sticking shipping lines with a huge liability. U.S. exporters need to be sure that they are dealing with genuine buyers who are ideally end users and not speculators.