Procedure for Obtaining NOC for Steel and Steel Imports
Steel is a vital material that forms the backbone of many industries in India, including construction, infrastructure, automotive, and manufacturing. Its quality and compliance are critical not just for business operations, but also for safety and long-term durability. Because of its importance, the government has put regulations in place to monitor the import and use of steel. One key requirement is obtaining a No Objection Certificate (NOC) or other statutory approvals for certain types of steel, especially when importing it from abroad.
Understanding how to obtain the necessary approvals can save businesses time, prevent unnecessary costs, and ensure that steel shipments clear customs without hassle.
What an NOC Means for Steel Imports
In the context of steel, the term “NOC” is often used broadly. It doesn’t always refer to a single certificate. Instead, it generally describes the approvals or clearances required to confirm that a steel product complies with Indian safety standards, trade regulations, and quality norms. Depending on the type of steel, its intended use, and its country of origin, these approvals may include:
Certification from regulatory authorities
Import authorizations or licenses
Inspection certificates or quality reports
The ultimate goal is to ensure that only safe, high-quality steel enters the Indian market while following trade rules.
Regulatory Authorities Involved
Several agencies are responsible for overseeing steel imports:
Bureau of Indian Standards (BIS): Ensures that steel products meet the required Indian Standards (IS). Many common products such as pipes, bars, structural steel, and sheets fall under mandatory BIS certification.
Directorate General of Foreign Trade (DGFT): Issues import licenses or authorizations for steel products that are restricted or regulated.
Customs Department: Verifies documents, inspects shipments if necessary, and clears goods at ports.
Ministry of Steel: Occasionally provides policy directives or notifications affecting steel trade.
Navigating these authorities correctly is key to smooth import operations.
Step-by-Step Process for Obtaining NOC
1. Identify Your Steel Product and HS Code
The first step is to determine the exact type of steel you are importing and its Harmonized System (HS) code. This classification is important because it determines which regulations apply. Misclassification can lead to delays, fines, or rejected shipments.
2. Check BIS Certification Requirements
Many steel products require mandatory BIS certification. If your product falls under this category:
The foreign manufacturer must have a valid BIS license.
The product must conform to the relevant Indian Standard.
Without this certification, customs will not allow clearance, regardless of other documents.
3. Apply for BIS Certification if Needed
If BIS certification is required, the foreign manufacturer must submit the necessary documents, allow factory inspections, and have samples tested in a BIS-approved laboratory. Once approved, the BIS license serves as an essential document for import clearance.
4. Review DGFT Import Requirements
Some steel products are restricted or regulated under the Foreign Trade Policy. Importing these products requires prior authorization from DGFT. Common cases include:
Products subject to safeguard duties or anti-dumping measures
Imports from certain countries with trade restrictions
Obtaining DGFT authorization ensures compliance with these rules.
5. Special Compliance for Steel Scrap
Steel scrap imports require additional approvals due to environmental and safety concerns. Importers must secure a Pre-Shipment Inspection Certificate (PSIC) and adhere to DGFT guidelines. Though technically not called an NOC, these approvals function in the same way, ensuring safe and compliant import.
6. Prepare Complete Documentation
Accurate documentation is essential for hassle-free clearance. Typical documents include:
Commercial invoice and packing list
Bill of lading
Mill test certificate
BIS license copy (if applicable)
DGFT authorization (if required)
Pre-shipment inspection certificate (for scrap)
Any mismatch between documents and the actual shipment can result in inspections or delays.
7. Customs Clearance
Once the shipment arrives, customs authorities verify the documents and may inspect the goods. If everything is in order, the steel is cleared for domestic use. Failure to meet regulatory requirements can result in fines, re-export orders, or even seizure of goods.
Challenges Importers Commonly Face
Businesses often encounter issues such as:
Confusion about which steel products require BIS certification
Incorrect HS code declarations
Delays in obtaining DGFT approvals
Outdated knowledge of regulations
These problems can increase costs and disrupt supply chains. Planning ahead and understanding the process is essential to avoid such setbacks.
The Importance of Professional Guidance
The process of obtaining approvals for steel imports can be complex due to overlapping regulations and frequent policy updates. Professional guidance ensures that all documents are in order, approvals are obtained on time, and shipments move smoothly from port to warehouse.
Conclusion
Obtaining an NOC for steel and steel imports is more than a bureaucratic step—it is a necessary process to ensure quality, safety, and compliance with trade policies. From identifying the correct HS code and verifying BIS requirements to securing DGFT authorizations and preparing accurate documentation, every step plays a critical role in smooth import operations.
For businesses seeking reliable support throughout this process, EVTL INDIA offers expert assistance in BIS certification, regulatory approvals, and steel import compliance, helping companies navigate the complex regulatory environment and ensure timely, hassle-free clearance.
