China’s scrap import restrictions have led to an increase in low-quality materials being shipped to India, according to the Material Recycling Association of India (MRAI).
‘Due to the Chinese ban, a few types of low-grade materials are being imported into India having high non-metallic content,’ the trade body writes in a letter to its members.
MRAI also says that ‘there have been instances in the trade related to non-abidance of contract and commitments by buyers, sellers and indentors of non-payment of consignment, low quality of material shipped by supplier, non-acceptance of claim by supplier etc.’
The industry body calls on traders and recyclers to stop these and other activities harming the sector. ‘These malpractices will not only impact a particular company but will also have wider implications on the entire trade and industry,’ it says.
Risk of high penalties
The organisation urges the industry to promote only environmentally friendly imports into India. ‘Otherwise we will be soon turning our nation into a dumping ground like China.’ It warns about the consequences of being caught: ‘Be aware that the government is having a watchful eye on all these activities, which may result in hefty penalties or ban on the import of certain kinds of metal scrap.’
A ‘promoter of best practices in the recycling industry’, MRAI has revised its guidelines for scrap buyers and sellers. These include:
- Maintain due diligence before buying material from any supplier.
- Only do business with reputable sellers in the market.
- Check the quality of material of every consignment that is being sent to you by asking for photographs in advance.
- Enter into formal contracts with sellers or indentors to safeguard yourself from fraud.
- To maintain India’s reputation in international and Indian markets, have your consignments cleared and payments made on time.
- Never compromise on good quality material just to boost margins as this will have a negative impact on India’s market.
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