Lead Scrap Import Restrictions: Understanding DGFT Quotas and Prohibited Items

Introduction

One of the biggest consumers of lead in the world is India, which is mainly associated with its high-use in battery, cable, alloys, building, and radiation shielding applications. As the automobile industry and renewable energy industry have been growing fast, there has been an explosion in lead demand.

Although domestic recycling and mining are also a source of supply, India is still a major importer of lead scrap. Nonetheless, lead is a hazardous substance, the trade of which is controlled strictly. In India, the importation of lead scrap is limited and needs the approval of the Directorate general of Foreign Trade (DGFT) on a No Objection Certificate (NOC) issued by DPIIT (department of promotion of industry and internal trade).

The significance of DGFT and DPIIT in controlling imports of lead scrap, the process of application step-by-step, the need to create such restrictions, and their benefits to human life and environment is discussed in this blog.

Significance of DGFT in the Control of Lead Scrap

The nodal body that enforces the foreign trade policy in India is the DGFT which is under the Ministry of Commerce and Industry. To unauthorized materials such as lead scrap, the role of DGFT is:

• Policy enforcement- It does the enforcement of imports in accordance to trade and environmental policy of India.
• Improvement – DGFT issues import licenses based on compliance verification.
• Tracking quotas – It is observing amounts of restricted imports to avoid surplus inflow.
• Co-ordination with DPIIT -DGFT: DPIIT reviews applications on an industry-by-industry basis and permits those applications.

Essentially, DGFT serves the purpose of filtering to make sure that only real and competent recyclers have the opportunity to import lead scrap.

Importance of DPIIT in Lead Scrap Imports

The DPIIT collaborates with DGFT in aiming to target industrial requirements and constraints. Its job includes:

• Determining demand and capacity- It verifies the installed recycling capacity and lead demand of the applicant.
• Preventing misuse – Ensures that permissions are not issued to traders and intermediaries but only to real users.
• Suggesting quotas – DPIIT uses NOCs to indicate the quantity of imports that are permitted to eligible units.

Why Lead Scrap Import Permission is Necessary

The reason why Lead Scrap Import Permission is required.
Lead is precious and harmful at the same time. The issue with its import should be monitored.

Human Health Concerns

Elevated exposure over a long period may lead to lead poisoning resulting to kidney failure, neurological impairment, anemia and retarded development in children.
Unregulated smelters and workers are at the greatest risk.

Environmental Risks

Improper disposal of lead scrap contaminates the soil and ground water.
Non-pollution controlled smelting emits poisonous fumes.

Industrial Regulation

Importation restriction guarantees recyclers who have been certified to manage such a dangerous substance.
It prevents the act of India being a dumping site of foreign lead waste.

Therefore, there must be DGFT and DPIIT approvals in order to strike a balance between demand in the industrial sector and environmental protection and the protection of the populace.

Step-by-Step Guide to Lead Scrap Import Authorization

There are two levels of the lead scrap import process and include both DGFT and DPIIT.

Step 1: Company Readiness

To apply, the company must possess:

• Import Export Code (IEC).
• Approval of Operation State Pollution Control Board (SPCB).
• Registration Battery Waste Management Rules and Hazardous Waste Rules.
• Process Flow chart
• CE Certificate
• Production data

Step 2: Filing of applications with DGFT

On the DGFT online portal (www.dgft.gov.in), Applicant submits an import authorization request of lead scrap.

Required documents include:

• IEC Certificate.
• MOA / Partnership Deed / Proof of Proprietorship.
• SPCB Consent and CPCB Registration.
• Chartered Engineer Certificate (plant and machinery details).
• Control of pollution installed.

Step 3: DGFT Forwards File to DPIIT

After an application has been submitted, DGFT examines it to ascertain its completeness.
It is then submitted to DPIIT to get No Objection Certificate (NOC).

Step 4: DPIIT Review & Quota Recommendation

DPIIT reviews:

• Recycling ability of applicant.
• Previous imports and consumption.
• Demand-supply situation in industries.

DPIIT then approves an NOC with prescribed quantity of imports.

Step 5: DGFT Grants Authorization of Import

DGFT then processes the file once it has received file NOC by DPIIT.
The final personages are granted with the import authorization, specifying by DGFT:

• Authorized CIF value/quantity.
• Validity term (normally 12 months).
• Compliance conditions.

Step 6: Clearance and Compliance of customs

DGFT authorization is submitted by Importer to Customs.
Periodic compliance reports would have to be provided to SPCB/CPCB.

Human Life & Environmental Impact of Lead Scrap

Unregulated lead scrap imports would result in:

• Extreme risk to health – Lead poisoning of workers and surrounding communities.
• Contamination of water – Dumps water contaminates wells and rivers.
• Air pollution – Filament less smelting produces lead particulates.
• Agricultural effect – Lead in soil impairs soil fertility and pollutes agricultural products.

Strict DGFT-DPIIT procedure, therefore, provides a safe handling, accountability, and protection of the environment.

DGFT Government Fees for Restricted Item Imports

(₹1 per ₹1,000 CIF value; minimum ₹500, maximum ₹1,00,000)

Conclusion

India has a high dependence on lead scrap as one of its essential raw materials which is utilized in the recycling and manufacturing industries. Its imports are however strictly controlled because it is a poisonous substance.
The procedure is as follows: Applicant submits application to DGFT – DGFT dispatches to DPIIT to get NOC – DPIIT gives NOC with quota – DGFT gives final approvals.

This is a two-layered mechanism of control where the lead scrap is only dealt with by legitimate recyclers ensuring the safety of workers, communities and the environment.

In business, it is important to learn more about the process, fees, documentation, and timelines that would help to avoid delays and fines. Considering all the above, the limitations placed on lead scrap imports by India are a definitive measure of the healthy relationship between industry and health safety in the population.