The Aluminium Association of India (AAI) has urged the Centre to immediately notify long-pending BIS standards for aluminium scrap, warning that India risks becoming a dumping ground for substandard material amid a surge in imports.
AAI's Representations to Ministries
In representations submitted to the Ministry of Finance and the Ministry of Mines, AAI said aluminium is now a "future-facing strategic material used across power, transport, infrastructure, defence, aerospace, packaging, electronics, utensils and renewable energy." It added that "any unchecked entry of aluminium scrap can therefore have a wider economic impact by affecting product quality, consumer safety, manufacturing competitiveness and the credibility of India's aluminium value chain."
Interim Fiscal Measures Sought
AAI has called for interim fiscal measures till the standards are in place. The association has requested maintaining Basic Customs Duty (BCD) on aluminium scrap at 2.5% until the government publishes the pending BIS scrap quality standards and introduces grade-wise HSN codes so that high-quality scrap is clearly separated from inferior grades.
The apex body also wants the government to "raise duty on low-grade scrap categories, specifically Grade 3 to Grade 7, to 7.5% after publication of the standard and HSN mapping."
Pending Standard
AAI said the standard in question — Aluminium & Aluminium Alloy Scrap - Requirements & Conditions of Delivery — "has already gone through detailed consultations involving NITI Aayog, BIS, JNARDDC, Ministry of Mines, Primary producers and Recyclers, but has remained pending for more than two years."
Global Trends and Dumping Concerns
Citing global trends, AAI said economies are tightening scrap rules. "The US has raised its Section 232 duties to 50%, the EU is advancing CBAM and other safeguard-related measures, and countries such as Malaysia and China allow only higher-quality aluminium scrap imports." The result, it said, is that "low-quality aluminium scrap being dumped into India."
Import Surge and Forex Outgo
The import surge is already showing up in trade data. AAI has warned that aluminium imports under Chapter 76 reached an all-time high of 3,479 KTPA in FY26, resulting in a forex outgo of Rs 88,434 crore. Scrap imports alone stood at 2,028 KTPA, causing a forex outgo of Rs 40,203 crore.
Impact on Domestic Investments
AAI said this threatens self-reliance goals at a time when domestic players have invested heavily. "The domestic aluminium industry has invested around Rs 1.5 lakh crore over the past decade and is preparing more than Rs 3 lakh crore of new investments by Vedanta, Hindalco and NALCO. These investments are expected to double primary aluminium capacity to nearly 9 MTPA by FY33 and create over 1 lakh jobs."
Key Demands
AAI's key demands include notifying the pending BIS scrap quality standard without further delay; introducing grade-wise HSN code mapping for aluminium scrap under HS 7602; and "building a robust domestic scrap collection and recycling ecosystem to reduce import dependence & promote India's goal of circular economy."
"Early intervention by the Ministry of Finance and Ministry of Mines will help align India's aluminium scrap regime with global best practices, protect responsible recycling, reduce avoidable forex outgo and safeguard India's quality reputation in a metal that is central to the country's future economy," AAI said.
