Complete guide to MOEF approvals for importing second-hand goods in India

Importing second-hand goods into India is not a simple purchase-and-ship transaction. Depending on the type of goods, the regulatory pathway can involve multiple ministries, mandatory environmental clearances, and strict compliance documentation.

For goods classified as hazardous waste or containing hazardous components – such as used tyres, lead-acid batteries, electronic assemblies, used oil, and certain metal scraps – obtaining a No Objection Certificate (NOC) from the Ministry of Environment, Forest and Climate Change (MoEFCC) is a mandatory prerequisite before any import can take place.

This guide breaks down the complete regulatory framework governing MoEFCC approvals for second-hand imports, the broader DGFT policy under Para 2.31 of the Foreign Trade Policy 2023, and the step-by-step compliance process businesses must follow.

Understanding the Regulatory Framework: Who Governs What?

The import of second-hand goods in India is jointly governed by three regulatory authorities, each with a distinct role:

Directorate General of Foreign Trade (DGFT): Sets the overarching import policy for second-hand goods under Para 2.31 of the Foreign Trade Policy (FTP) 2023. Determines whether goods are classified as Free, Restricted, or Prohibited for import.

Ministry of Environment, Forest and Climate Change (MoEFCC): Grants environmental clearance (NOC) for the import of goods that fall under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. This is mandatory for goods classified as hazardous waste in Schedule III of these Rules.

Central Board of Indirect Taxes and Customs (CBIC): Handles customs valuation, duty assessment, and physical clearance at the port. Requires a Chartered Engineer Certificate (CEC) for valuation of second-hand capital goods as per CBIC Circular No. 07/2020 dated February 5, 2020.

Para 2.31 of FTP 2023: The Master Policy for Second-Hand Imports

The starting point for any second-hand import is Para 2.31 of the Foreign Trade Policy 2023, which divides second-hand goods into distinct categories with different import regimes:

Category 1(a): Second-Hand Capital Goods – Restricted

Certain specified categories of second-hand capital goods are placed under the Restricted list. These require a DGFT Import Authorization before shipment.

Category 1(b): Electronics and IT Goods – Prohibited Unless BIS Registered

As amended by DGFT Notification No. 13/2024-25 dated May 20, 2024, the import of all electronics and IT goods (new or second-hand, whether refurbished, repaired, or reconditioned) notified under the Electronics and Information Technology Goods (Requirement of Compulsory Registration) Order, 2021 is prohibited unless they carry valid BIS registration. A specific exemption letter from MeitY for a particular consignment is the only alternative.

Category 1(d): Other Second-Hand Capital Goods – Free

All other second-hand capital goods that do not fall under the restricted or prohibited categories above are classified as Free for import, subject to the production of a valid Chartered Engineer Certificate (CEC) at the time of customs clearance. Note: Para 2.31 does not prescribe a blanket ten-year age limit for all second-hand capital goods under this category. Age conditions are product-specific and must be verified against the exact ITC(HS) classification of the goods being imported.

Category 1(e): Used IT Assets from SEZs to DTA – Free with Conditions

Inserted by DGFT Notification 56/2023 dated January 1, 2024, this allows the transfer of used IT assets (laptops, desktops, monitors, printers) from Special Economic Zones to the Domestic Tariff Area without a DGFT license, subject to specified conditions.

The MoEFCC Layer: Environmental Compliance Under Para 2.03

Importantly, the FTP categories above do not operate in isolation. Para 2.03 of FTP 2023 mandates that all applicable Indian technical, environmental, safety, and health requirements remain relevant to imported goods regardless of their FTP classification. This means that even if a second-hand good is classified as “Free” under Para 2.31(I)(d), the importer must still comply with the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 if the goods contain or constitute hazardous waste. The MoEFCC NOC requirement is triggered by the Hazardous Waste Rules, not by the FTP classification itself.

When is MoEFCC Approval Required?

MoEFCC approval in the form of a No Objection Certificate (NOC) is specifically required when the second-hand goods being imported fall under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. The key product categories that typically require MoEFCC clearance include:

Used tyres and rubber scrap – classified under Part B and Part D of Schedule III. Used for recycling into crumb rubber, rubber granules, and reclaimed rubber.

Lead scrap and lead-acid battery scrap – classified under Part A and Part B of Schedule III. Imported by lead smelting and recycling units.

Used oil and waste lubricants – classified under Part A of Schedule III. Imported for re-refining and recovery.

Electrical and electronic assemblies (e-waste) – governed by both the Hazardous Waste Rules, 2016 and the E-Waste (Management) Rules, 2022. Includes used circuit boards, connectors, and electronic components imported for precious metal recovery or refurbishment.

Used medical equipment – such as refurbished MRI machines, CT scanners, PET-CT systems. These require MoEFCC NOC because they contain components classified as hazardous (lead shielding, radioactive components) and are listed under B1110 of the Basel Convention categories.

Metal scrap containing hazardous elements – zinc ash, copper scrap with insulation, aluminium dross, and similar industrial waste materials.

The MoEFCC Approval Process: Step by Step

Step 1: Determine Applicability

Identify whether your goods fall under Schedule III (Part A, Part B, Part C, or Part D) of the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. Part A and Part B require prior written permission from MoEFCC. Part D items can be imported without MoEFCC permission but require compliance documentation at customs.

Step 2: Obtain State-Level Clearances

Before approaching MoEFCC, the importing unit must have valid consents and authorizations from its State Pollution Control Board (SPCB) or Pollution Control Committee (PCC):

• Consent to Establish (CTE) and Consent to Operate (CTO) under the Water Act and Air Act
• Hazardous Waste Management Authorization under the 2016 Rules
• Extended Producer Responsibility (EPR) registration from CPCB, where applicable (mandatory for e-waste and used tyres)

Step 3: Prepare and Submit Form 5

The formal application to MoEFCC is made in Form 5 (Appendix E of the Hazardous Waste Rules, 2016). This is the prescribed format for seeking permission for the import of hazardous and other wastes. The application must include:

• Complete details of the waste to be imported (type, quantity, Basel Convention classification)
• Justification for import (why domestic procurement is insufficient)
• Detailed process flow chart showing how the imported waste will be processed, recycled, or reused
• Evidence of adequate pollution control equipment at the processing facility
• Valid SPCB/PCC consents and Hazardous Waste Authorization
• Prior Informed Consent (PIC) from the exporting country (mandatory for Part A of Schedule III)
• Insurance cover for the proposed transboundary movement
• A copy of the application must simultaneously be submitted to the concerned SPCB

Step 4: Expert Committee Review

MoEFCC places the application before its Expert Committee on Hazardous Waste Management. The Expert Committee evaluates:

• The applicant’s processing capacity and actual production history
• Whether the unit has been operational and compliant in previous financial years
• The environmental safeguards in place at the facility
• Whether domestic alternatives are available for the material being imported
• The applicant’s track record with previously granted permissions

The Expert Committee meets periodically and publishes its decisions on the MoEFCC website (moef.gov.in).

Step 5: MoEFCC Issues NOC

Upon satisfactory review, MoEFCC issues the NOC with specific conditions – including the quantity permitted, the validity period, the port of import, and the end-use restrictions. The NOC is typically valid for a defined period and for a specified quantity.

Step 6: Obtain DGFT Import Authorization (If Applicable)

For goods that are also classified as Restricted under Para 2.31 of FTP 2023, the importer must separately obtain a Restricted Import Authorization from DGFT after receiving the MoEFCC NOC. The MoEFCC NOC is a prerequisite for the DGFT authorization, not a replacement.

Step 7: Customs Clearance

At the port of import, Customs authorities verify the MoEFCC NOC, DGFT authorization (if applicable), the movement document (Form 6), and the waste analysis test report. The shipment must be accompanied by the complete documentation chain. MoEFCC sends a copy of the permission directly to CPCB, the concerned port and customs authorities, and the SPCB.

The Chartered Engineer Certificate (CEC) Requirement

For second-hand capital goods that are freely importable under Para 2.31(I)(d) – such as used industrial machinery under 10 years old – the critical compliance document is the Chartered Engineer Certificate.

As per CBIC Circular No. 07/2020 dated February 5, 2020, the CEC serves two purposes: it certifies the residual life of the machinery and provides the basis for customs valuation of the used equipment.

For second-hand capital goods, the CEC must confirm a minimum residual life of 5 years. For refurbished or reconditioned spares of capital goods (a separate Free category under Para 2.31), the CEC must certify that the spare has at least 80% residual life of the original spare.

There are two pathways for obtaining the CEC:

Form A – CEC at Origin: Issued by a reputed chartered engineering firm in the exporting country before shipment. This is the preferred route as it avoids delays at the destination port.

Form B – CEC at Destination Port: If a CEC cannot be obtained at origin, an engineer empanelled by the local Custom House can inspect and certify the goods after arrival. However, this route involves logistical challenges due to space constraints at customs locations and can significantly delay clearance.

The CEC must confirm that the machinery is in working condition, has adequate residual life, and is not hazardous waste disguised as capital goods.

Key Compliance Pitfalls to Avoid

Importing without MoEFCC permission for Schedule III goods: This constitutes illegal import under the Hazardous Waste Rules. The importer must re-export the waste at their own cost within three months of arrival.

Assuming MoEFCC NOC alone is sufficient: For Restricted goods, a separate DGFT Import Authorization is also required. The MoEFCC NOC does not replace the DGFT license.

Importing electronics without BIS registration: Under the amended Para 2.31(I)(b), non-BIS-registered electronics and IT goods are Prohibited. Customs will deform the goods beyond use and dispose of them as scrap if the importer fails to re-export.

Missing the CEC for freely importable machinery: Even for Free category goods, customs will not clear second-hand capital goods without a valid Chartered Engineer Certificate. Arriving at the port without one causes demurrage and clearance delays.

Not maintaining post-import records: The importer must maintain records of imported waste in Form 3 (available for inspection) and submit an annual return in Form IV to the SPCB on or before June 30 following the financial year.

The regulatory framework for importing second-hand goods in India spans three ministries, multiple forms, and strict environmental compliance requirements. A single missing document – whether it is the MoEFCC NOC, the DGFT authorization, the SPCB consent, or the Chartered Engineer Certificate – can result in port holds, forced re-exports, or goods being destroyed at customs.

Mundhra Consulting Services (MCS) provides end-to-end advisory for businesses importing second-hand goods into India. From determining the correct regulatory pathway under Para 2.31 to securing MoEFCC clearances, DGFT authorizations, and customs valuation documentation, our team ensures compliant, delay-free imports.

Frequently Asked Questions (FAQs)

Also Read: MoEF & CC Approvals & Environmental Clearance: A Complete Guide