Aluminum Dross Imports in India: A Step-by-Step Guide to DGFT Authorization

Introduction

The industrial development in India depends largely on the raw materials, a good number of which are imported. Of these, the by-product of smelting aluminium dross has been of significance since it can be recycled to produce usable aluminium and allied products.

The importation of aluminium dross is however not very easy as the importation of normal goods. As it is classified under the Restricted Category of Imports according to the DGFT (Directorate General of Foreign Trade), an importer has to get a certain permission, then the consignment is cleared at the Indian ports.

The key steps that need to be followed when importing the aluminium dross to India, we will discuss in this guide the purpose of DGFT permission, the role of uncontrolled imports on human life and environment, and clarify about fees, documentation and frequently asked questions.

Why DGFT Authorization is significant?

The highest authorities under the Ministry of Commerce and Industry, Government of India, which regulate imports and exports activities are called the DGFT. It does not just have an administrative function, i.e. it makes sure that international trade occurs safely, sustainably and legally.

In the case of restricted items such as dressing aluminium, DGFT approval has several functions:

• Environmental Protection: Aluminium dross is a mixture of heavy metals, oxides, and salts which are potentially dangerous when disposed of thoughtlessly. DGFT provides that the importation of it is done by licensed recyclers with facilities that are proper.
• Health and Safety: The mishandling of aluminium dross may result in air and water pollution which can cause respiratory problems, skin problems and soil and groundwater contamination.
• Basel Convention: India has signed Basel Convention on the Control of Trans boundary Movements of Hazardous Wastes. DGFT authorization keeps international standards in mind.
• Regulation of the industry: The control of imports inhibits the abuse of unaccredited traders as well as accountability.
• Traceability: The authorization enables government agencies to know who imports, what and where the material is utilized.

The need to have the Aluminium Dross Import Permission

Aluminium dross, even though it has important economic value, as it can be re-used in the production of aluminium ingots, alloys, and other by-products, can be very dangerous.

Key Concerns:

• Chemical residues: The inadequate processing can release ammonia, hydrocarbons, and poisonous gasses.
• Health risks: The employees who come in contact with dust and fumes risk lung diseases, eye inflammation or chronic respiratory disease.
• Water pollution: Ground water may be contaminated by leachate of dross piles.
• Uncontrolled dumping: Wastes will be dumped in open areas causing effects to the local communities in case of importation in a free manner.

As such, compulsory DGFT authorization is to make sure that this material is dealt with in a responsible manner by the capable recyclers with the right technology and the right infrastructure.

Process of DGFT Authorization of importing Aluminium Dross

Step 1: Check Import Policy

• HS Code: Hs Code of Aluminium dross usually is classified under the Hs Code 26204010 (Aluminium ash and residues containing mainly aluminium).
• Policy: Restricted, it is placed in ITC (HS), Schedule I.

Step 2: Company Preparation

• Make sure that you are a registered company, and have Import Export Code (IEC).
• Get Pollution Control Board (SPCB/PCC) Consent to Operate recycling.
• Possess a good factory license and show processing facilities.

Step 3: Application to DGFT

• Make an application through DGFT portal (www.dgft.gov.in).
• Post supporting documents:
  • IEC Certificate
  • Registration of the company (Partnership Deed / MOA / Proof of Proprietorship)
  • Factory License
  • The authorization of the Pollution Control Board.
  • Chartered Engineer Certificate (plant machinery details)
  • Environmental management plan.

Step 4: Payment of Fees

Govt. charge on authorization of importing restricted items:

• Rs. 1 on all Rs. 1,000 of CIF value of goods.
• Minimum fee: Rs. 500
• Maximum fee: Rs. 1,00,000

Step 5: Examination by DGFT & MoEFCC

• DGFT submits the case to MoEFCC (Ministry of Environment, Forest and Climate Change) to seek clearance of the case.
• The Technical Committee also reviews the application in relation to the hazardous imports.

Step 6: Grant of Authorization

• DGFT issues Import Authorization Letter on approval, stating the allowed quantity, the terms and conditions of usage and validity.
• This paper should be submitted to the Customs Authorities in the port of import.

Step 7: Import & Compliance

• Customs check consignment on import.
• Importer should have adequate documentation on processing and he should make periodic reports on the compliance to SPCB/CPCB.

Implication on Human Life and the significance of checking imports

Uncontrolled imports of aluminium dross may cause:

• Due to dumping of unprocessed waste, environmental degradation takes place.
• Occupational health risks and those of the population.
• Much against the recycling norms, illegal sale of hazardous waste.
• Accountability loss, and this means that India is a dumping site of international scrap.

This is why DGFT, MoEFCC and Customs keep a check on the authenticity and safety of imports and their environmentally friendly status.

Government Fees for Restricted Item Import Authorization

(As per DGFT fee schedule: ₹1 per ₹1,000 CIF value; min ₹500, max ₹1,00,000)

Conclusion

The importation of the aluminium dross into India is very strictly controlled due to its duality, as on one hand it is a valuable resource, whereas on the other hand it is a dangerous material. The imposition of DGFT authorization by the government requires that only legitimate recyclers with facilities that are of the required standard can manage it.

This safeguards the human health, environment, and industry standards, and encourages sustainable recycling in India.

In the case of businesses, it is important to know the step wise process, costs and paperwork so that one does not waste time at the ports and it is completed entirely. Aluminium dross imports could be a viable and sustainable business opportunity with proper planning and approvals.