During the last Board of Directors meeting held at Delhi, India, the Directors suggested the need for adherence to best practices by one and all – be it a buyer, seller or indentor and all agreed to it unanimously. “As MRAI promotes best practices in the industry, we wish to form certain guidelines for the buyers, sellers and indentors for the betterment of trade and industry,” said the association in a press statement.

There have been instances in the trade related to non-abidance of contract and commitments by buyers, sellers and indentors like non-payment for consignments, low quality of material shipped by supplier, non-acceptance of claim by supplier etc., as per the press release. It is to be understood that these malpractices will not only impact any particular company but there are larger implications on the entire trade and industry. “It has also been observed that due to restrictions on Chinese scrap imports, few types of low grade materials are being imported into India having high non-metallic content.

MRAI being the apex Association urges the trade and industry not to import consignments having high non-metallic contents,” stated MRAI also adding that “since the Government is keeping a watchful eye on all these activities” it could result in hefty penalties or ban on import of certain kinds of metal scrap. “To safeguard the entire trade and industry, MRAI requests all trade members and associates to do business with a view to safeguard the national interest,” according to the statement. The association has also issued the below guidelines for Buyers, Sellers and Indentors for the betterment of the trade:

1.  Scrap Buyers (Importers)

Maintain due diligence before buying material from any supplier.

Do business with reputed sellers in the market.

Check the quality of material with each and every consignment that is being sent to you by asking photographs in advance.

Enter into formal contracts with sellers/indentors thereby safeguarding yourself from any kind of fraud.

Do business with reputed indentors in the market, who have long standing.

With a view to maintain India’s reputation in the International and Indian markets, get your consignments cleared and payments done on time.

As a good business practice, never compromise on good quality material just for fetching more margins as they will create negative impact on India’s market.

Avoid any kind of malpractices.

Promote only environmentally friendly imports into India otherwise we will be soon turning our nation into dumping ground like China.

2. Scrap Sellers (Exporters)

Conduct proper due diligence before selling material to any buyer.

Do business with reputed indentors in the market.

As a good business ethics, kindly sell environmental friendly and quality material in India.

Abide by the contract entered with the parties.

Be cautions with shipping lines thereby negotiating in a proper manner with them, as they always load many charges on the importers. It has been observed that suppliers negotiate for low freight and compromise on 5 free days instead of 14 free days that is normally required in India. They also compromise on heavy charges at arrival ports.

Enter into formal contracts with buyers/indentors thereby safeguarding yourself from any kind of fraud.

Avoid any kind of malpractices.

Promote only environmentally friendly imports into India; otherwise we will be soon turning our nation into a dumping ground like China.

Do not offer high non-metallic content to Indian buyer.

3. Indentors

Promote only environmentally friendly imports into India, otherwise we will be soon turning our nation into a dumping ground like China.

Conduct proper due diligence of both the buyer and seller before doing business with either party.

Enter into legal contracts with the parties for any deal being done.

Avoid any kind of malpractices.

For promoting quality business, let’s keep our buyers and sellers aware of both parties’ financial stability.

To promote healthy business in India, intimate the trade about the frauds done by the buyer/seller.

Do not offer high non-metallic content to Indian buyer.

"Let’s together keep the Indian market a safe place for business and this responsibility is of all the stakeholders in the trade."