Business · India Bureau
India delists 15 scrap inspection agencies over certification failures
The Directorate General of Foreign Trade has withdrawn recognition from 15 inspection agencies due to lapses in certification standards. Metal scrap importers have raised concerns about resulting penalties, increased costs, and shipment disruptions.
LSN India ·
India's trade regulator has taken action against inspection agencies handling metal scrap imports, citing deficiencies in their certification processes. The Directorate General of Foreign Trade (DGFT) delisted 15 agencies following a review of their performance standards and compliance with prescribed protocols.
The decision has triggered concerns among metal scrap importers, who depend on these agencies to verify material quality and authenticity before shipments enter the country. Industry participants warn that the sudden withdrawal of recognition from a significant number of inspectors is creating bottlenecks in import clearances and exposing them to potential penalties for delays.
Importers have flagged multiple challenges arising from the delistings, including delays in obtaining inspection certificates, which are mandatory for customs clearance. The reduced number of available agencies has also created capacity constraints, pushing up inspection costs for businesses reliant on metal scrap imports as raw material inputs.
The DGFT's move reflects tighter enforcement of certification standards in the metal scrap import sector, a critical supply chain for India's steel and manufacturing industries. However, stakeholders are seeking clarity on replacement agencies and a transition period to minimize disruption to ongoing shipments and industrial operations.