Overview of Paper Scrap Import License

There has been a, relatively high demand in paper and paper products in Asia particularly in India due to a rapidly growing economy. Besides, being generated in the country paper scrap which is an essential input in to the paper recycling industry is imported to cater for this need. A Paper Scrap Import License is an official permit that aiming importers in India for importing paper scrap into the country is issued by the Directorate General of Foreign Trade commonly referred to as DGFT. This license guarantees that the imported good complies with the intended rules and regulations of the DGFT Indian body that oversees the international trading and aspires to facilitate sustainable business and environmentally friendly business practices.

Importance of Paper Scrap in India

In India the paper recycling sector is essential to minimizing negative environmental effects and promoting sustainable development. Paper recycling contributes to waste minimization energy conservation and the preservation of natural resources. Because domestic waste paper collection is not up to par with industry demands imports of paper scrap are necessary.

Advantages of Paper Scrap Import License

• Stable Supply: Assures a consistent and dependable source of paper scrap which is essential to the recycling industries ability to continue producing at a constant rate.
• Reduced Costs: If local supplies are scarce or more expensive importing paper scrap may be more economical than sourcing raw materials locally.
• Sustainability: Encourages paper recycling lessens the need for virgin pulp and preserves natural resources in order to support environmental sustainability.
• Greater Production Capacity: Facilitates growth and scalability by enabling companies to increase their output by obtaining the essential raw materials.
• Improved Inputs: Having access to high-quality paper scrap can boost the marketability and reputation of the company by improving the quality of its recycled paper products.

Regulatory Framework

The import of paper scrap in India is regulated through some acts and rules because the material imported may cause negative impacts towards the physical environment and the health of the people. The major regulating authority in import of paper scrap is the Directorate General of Foreign Trade (DGFT) functioning under the Ministry of Commerce and Industry.

Key Regulations

• Foreign Trade Policy (FTP): The FTP contains the measures on the imports and exportation of goods and on the paper scrap as well. It spells out conditions under which import licenses can be obtained as well as the conditions permitting imports.
• Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016: These rules have been framed under the powers conferred by Sec 3 and 8 of the Environment (Protection) Act, 1986 as amended and issued by MoEF&CC, India these rules cover the import of hazardous and other wastes including paper scrap. This is because importers of used products particularly the scraps must adhere to these rules to avoid importing hazardous materials.
• Bureau of Indian Standards (BIS) Certification: Based on the type of paper scrap to be imported, there could be need to obtain BIS certification, to certify that the scraps conform to standard quality and safety standards of India.

Documents Required for Paper Scrap Import License

Importer Exporter Code (IEC)

• Application Form: In completing the documentation process, sometimes one is required to fill an application form for the issue of an IEC; for import-export companies.
• PAN Card: Photo-copy of the PAN card of the business or individual.
• Bank Certificate: An account certificate from the bank containing the details of the applicant.
• Address Proof: The supporting documents include copy of photograph and identity card, proof of the applicant’s address like documents of utility bills or rental agreement.

For Application of Import License

• Application Form: Accurate and complete application form for import of paper scrap to be downloaded from the DGFT web site, for filling up and signing.
• Covering Letter: A letter of undertaking on the company’s headed paper stating the reason for the import and the type of paper scrap.
• Proforma Invoice: An invoice or a purchase order from the foreign supplier, the proforma of which includes the description of the paper scrap, its quantity, quality and price.
• End-Use Certificate: An affidavit that determines the purpose for which the imported paper scrap will be used especially one done on the company’s letterhead.

Environmental Clearance

• Environmental Impact Assessment (EIA) Report: An EIA report if necessary indicating the environmental consequences of the importation of the scrap and measures to avoid such consequences where necessary.
• No Objection Certificate (NOC): NOC from the SPCB or PCC of concerned state or union territory where the project or the industry is to be located.

Several standards and norms required for a company have to be fulfilled, including – Bureau of Indian Standards (BIS) Certification.

• BIS Application Form: Form for seeking BIS certification, if necessary the imported paper scrap needs to assure the quality standards.
• Test Reports: Affidavit/ Test reports from any laboratory which has been approved by BIS and which certifies that the paper scrap conforms to the quality standard in India.
• Quality Assurance Plan: A sketch of the mechanism of how the importer will ensure quality of the products.

Other Supporting Documents

• Bill of Lading (BL): The contract note given by the shipping company.
• Certificate of Origin: An affidavit from the supplier that the paper scraps belongs to him/her/their Company and not from a banned source.
• Packing List: There is often a packing list which involved from the supplier containing all the items that were shipped.
• Customs Declaration Form: A document that declares the description of the imported goods to the authorities of customs.

Financial Documents

• Letter of Credit (LC) or Payment Terms: Particular of the payment method agreed between the buyer and the foreign supplier as contained in a letter of credit or other financial documents.
• Insurance Certificate: Other papers, which refer to insurance notes of the shipment against possible risks during transportation.

Company Documentation

• Company Registration Certificate: Some of the documents which may be required include but not limited to Certificate of incorporation of the company.
• GST Registration: The GST registration certificate must also be shown which is a legal requirement when importing goods into the country.
• Director Identification Number (DIN): List the DIN of the directors of the company – if applicable.

Procedure for Getting an Import License for Paper Scrap

Following are the procedure which to be fulfilled to get paper scrap import license-

• Registration with DGFT: Prior to importation importers are required to obtain an Importer Exporter Code (IEC) and register with DGFT. In India this code is required for all import-export transactions.
• Application for Import License: Using the DGFTs web portal importers are required to submit an application for an import license. Information regarding the type and quantity of paper scrap to be imported the country of origin and the intended use of the imported material should all be included in the application.
• Environmental Clearance: If the paper scrap is classified as hazardous waste importers may need to get approval from the MoEFandCC. In order to do this you must submit an Environmental Impact Assessment (EIA) report and abide by the guidelines provided in the Hazardous and Other Wastes (Management and Transboundary Movement) Rules 2016.
• BIS certification: To guarantee that the paper scrap satisfies Indian quality and safety standards importers must if necessary obtain BIS certification for it.
• Customs Clearance: The importer can move forward with the import after obtaining the import license and any other required clearances. The imported shipment needs to be cleared by customs where it is examined to make sure all legal requirements are met.

How Whizseed can help you?

• Information Hub: We can serve as a comprehensive resource for all the necessary information regarding paper scrap import licensing. We can provide detailed explanations of the regulatory framework, key regulations, and the importance of paper scrap in India.
• Document Checklist: We can offer a detailed checklist of all required documents for obtaining a Paper Scrap Import License, including IEC requirements, environmental clearances, and BIS certifications.
• Step-by-Step Guide: We can provide a clear, easy-to-follow guide on the procedure for obtaining an import license, from registration with DGFT to customs clearance.
• Application Assistance: We can offer guidance on filling out the necessary application forms, including tips on how to accurately complete the DGFT application.
• Regulatory Updates: Our website can keep users informed about any changes in regulations or policies related to paper scrap importation.
• Expert Advice: We could offer a platform for users to ask questions and receive expert advice on specific aspects of the import process.