India is mostly known as a scrap importer, but Indian businesses also export scrap, especially sorted non-ferrous metals, stainless and alloy scrap, and specialty materials where overseas buyers pay a premium. Exporting can open new markets and better prices, but it requires discipline in grading, documentation and buyer verification. This guide sets out the process.
Export policies for scrap can change, and some materials may be restricted or require permissions. Always check the current ITC(HS) export policy and consult a customs broker before contracting.
Step 1: Check export policy for your material
Every product has an HS code, and DGFT's export policy schedule states whether it is freely exportable, restricted (needs a licence), or prohibited. Scrap policies have changed over time, sometimes to protect domestic supply of critical raw materials. Before quoting an overseas buyer:
- Identify the correct HS code for each grade.
- Check the current export policy and any conditions.
- Check whether any export duty applies.
Step 2: Register for exports
You need:
- An IEC from DGFT.
- GST registration, since exports are zero-rated supplies (you can export under LUT without paying IGST, or pay IGST and claim a refund).
- Registration with an export promotion council, where relevant for benefits.
- A bank account authorised for foreign exchange (AD code registered with customs).
Step 3: Know what overseas buyers want
International buyers buy against specifications, most often ISRI codes. Common export grades from India include:
| Material | Common grades |
|---|---|
| Copper | Barley, Berry, Candy, Birch, Cliff, insulated wire |
| Brass | Honey (yellow brass), Ebony (composition/red brass), turnings |
| Aluminium | Taint/Tabor, Tense, Zorba, extrusion 6063 |
| Stainless steel | 304 solids, 316 solids, turnings |
| Alloys | Specific grades by chemistry |
Your material must match the agreed specification. Under-grading a lot loses value; over-describing it leads to claims.
Step 4: Aggregate and sort
Most Indian sellers do not generate a full container of a single grade quickly. Exporters therefore aggregate from many sources and sort carefully. This is where a marketplace network helps: material from many factories can be consolidated, graded and packed together.
Sorting steps:
- Segregate by metal using magnets, visual checks and, where needed, XRF analysers.
- Remove contamination such as iron, plastics, rubber and dirt.
- Bale, bag or box material as the buyer prefers.
- Record weights by grade.
Step 5: Agree contract terms
Key terms in a scrap export contract:
- Specification: ISRI code or chemistry, contamination limits.
- Quantity: Containers and tonnes, with tolerance.
- Price basis: Fixed price or linked to LME/COMEX with a discount or premium.
- Incoterm: FOB Indian port, CFR or CIF destination.
- Payment: Confirmed LC, advance payment, or CAD with deposit.
- Inspection: Pre-shipment inspection by an agreed agency; photos and video during loading.
- Weight basis: Loading-port weighbridge or destination weight.
- Claims: Time limit and procedure.
Step 6: Container loading
Professional loading is your best protection against disputes.
- Weigh empty and loaded trucks or containers on a certified weighbridge.
- Photograph and video material before and during loading, showing grades clearly.
- Photograph the container number, seal number and final stuffing.
- Load evenly and within container weight limits.
- If the buyer requires independent inspection, schedule it in advance.
Step 7: Documentation
Typical export documents:
- Commercial invoice and packing list.
- Shipping bill filed with customs.
- Bill of lading.
- Certificate of origin where required.
- Inspection certificate, if required by buyer or destination country.
- Weighment slips and photos (shared with buyer).
- Any destination country import permits the buyer must obtain.
Some destination countries have their own scrap import rules, including pre-shipment inspection or registration of exporters. Ask your buyer what their country requires.
Step 8: Payment and risk management
Scrap trade unfortunately attracts fraud: fake buyers, forged documents and non-payment. Protect yourself:
- Prefer confirmed LCs from reputable banks or advance payments.
- If using CAD, take a meaningful advance before loading.
- Verify buyer company registration, address, references and trade history.
- Never release original bills of lading before payment terms are met.
- Be wary of buyers offering prices well above market.
Step 9: Post-shipment
Track the vessel, share documents promptly, and stay available for any quality queries. Resolve claims based on evidence: your photos, videos and weighment records.
Costs to include in your export price
- Collection and transport to your yard.
- Sorting, baling and packing labour.
- Inland freight to port.
- Port handling, customs broker and documentation.
- Inspection fees.
- Ocean freight (for CFR/CIF).
- Finance costs and bank charges.
- Currency risk.
When export makes sense
Export tends to make sense for high-value, well-sorted non-ferrous and alloy scrap where overseas buyers pay more than domestic consumers after all costs. For bulk ferrous scrap, India is usually a net importer, so domestic sale is typically better.
A worked example: pricing an export container
A trader aggregates 22 tonnes of clean yellow brass (Honey) from factories in Uttar Pradesh for an overseas buyer on FOB terms. To decide whether export beats domestic sale, the trader builds a simple calculation:
| Item | How to estimate |
|---|---|
| Buyer's FOB price | Agreed per tonne, often linked to LME copper with a discount |
| Collection from sellers | Truck freight from each factory to the yard |
| Sorting and packing | Labour, bags or boxes, XRF checks |
| Inland freight to port | Truck or rail to Kolkata or Nhava Sheva |
| Port and documentation | CHA fees, terminal handling, inspection |
| Finance cost | Days of working capital until payment |
| Contingency | Allowance for small weight or quality claims |
If the FOB price minus all costs exceeds what domestic brass buyers pay delivered, export makes sense. If the margin is thin, domestic sale is simpler and less risky.
Red flags in overseas buyer enquiries
- Price far above the market for the grade.
- Pressure to ship before payment security is in place.
- Requests to change bank details at the last moment.
- Free email addresses and no verifiable company website or registration.
- Unwillingness to do a video call or share trade references.
- Requests for "samples" in large quantities without payment.
Any of these warrants pausing the deal until the buyer is properly verified.
Export readiness checklist
- IEC, GST and AD code registration complete.
- Export policy for each HS code checked.
- Grades sorted to ISRI specification with photos.
- Container loading plan and weighbridge arranged.
- Payment terms secured (LC or advance).
- Documents checked against contract before shipment.
- Buyer verified and references confirmed.
Common export disputes and how to prevent them
- Grade claims: The buyer says the material is below specification. Prevent this with clear photos of each bale or bag, video of loading and, for valuable lots, an agreed pre-shipment inspection.
- Weight claims: The destination weight is lower than invoiced. Agree in advance which weight is final and the tolerance, and keep weighbridge slips for every container.
- Moisture and contamination: Rain during loading or oily turnings can trigger deductions. Load under cover and dry material first.
- Payment delays: Keep original documents until payment terms are met, and use instruments that protect you.
Building repeat export business
The best export relationships start with a small, well-documented first container. Deliver exactly the grade promised, share photos and slips promptly, and resolve any query quickly. Buyers who trust your grading will place repeat orders, accept faster payment terms and sometimes pay a premium for consistency.
How Kabadi24 supports exporters
Kabadi24's marketplace aggregates non-ferrous and alloy scrap from verified sellers across India. Our trade desk at the Ramnagar, Varanasi head office grades material to ISRI specifications, arranges container loading with full photo and weighment records, coordinates documentation, and works with verified overseas buyers on secure payment terms. Indian sellers with export-grade lots can post them on the marketplace; overseas buyers can post requirements.
Conclusion
Exporting scrap from India can be rewarding, but it is a specialised business. Check export policy, grade to international specifications, load professionally with full evidence, document carefully and insist on secure payment. With the right systems and partners, Indian scrap can compete well in global markets.