Landed-cost calculator
IGST 18% applies on (CIF + BCD) at import but is recoverable input credit for the registered Indian buyer, so it does not land in true landed cost — it is cash-out then credit-back. Model uses 20 MT/container; a mixed non-ferrous 20GP runs lighter (15–17 MT). Always re-verify duty for the exact HS code this quarter before quoting — one customs surprise erases the whole margin.
Container math — how many containers to the target
₹1 Cr/month CIF (the stage target)
- Landed ≈ ₹40,000–55,000/MT ferrous (model stack, INR 87) → a 20 MT container ≈ ₹8–11 lakh landed.
- At 1% commission on CIF, one ferrous container earns ≈ $90–95 (₹7.8–8.3k). Volume, not margin, is the first-years engine.
- ₹1 Cr/month of arranged CIF ≈ 10–11 containers / month — realistic with 2–3 Tier-A buyers × 3–4 containers each.
- Margin note: commission on CIF ≠ ownership risk. We earn by arranging (sourcing, docs, LC, PSIC), not by holding inventory — that's the whole §9 model.
What a buyer really pays per grade (landed, model)
| Grade | FOB | +duty | Landed (USD/MT) |
|---|---|---|---|
| HMS 1&2 80:20 | ~$390 | 0% | ~$470 |
| Shredded | ~$400 | 0% | ~$480 |
| Copper #2 wire | ~$8,800 | 2.75% | ~$9,125 |
| Aluminium UBC | ~$1,825 | 2.75% | ~$1,955 |
| Lead wheel weights | ~$1,550 | 0% | ~$1,630 |
Indicative, freight $65/MT (sourced Aug-2026: ≈ $44–199/MT — Globy live NOLA→Chennai $875 · Miami→JNPT $965 per 20ft; GoComet GFI JNPT $3,979) + inland $15/MT. Update from today's quotes via the calculator above.
Duty & compliance — resolved states (05 Sep 2026)
| Scrap family | HS | BCD | Validity / source |
|---|---|---|---|
| Ferrous (HMS, shred, P&S, busheling) | 7204 | Nil | Exemption extended to 31 Mar 2028 (Budget 2026-27 · steel.gov.in) |
| Copper / brass | 7404 | 2.5% | Current (FM Budget 2026 speech; steel-baba) |
| Aluminium | 7602 | 2.5% | Current (steel-baba) |
| Lead / zinc | 7802 / 7902 | Nil | Budget 2026-27 (steel-baba) |
PSIC rule: DGFT-approved pre-shipment inspection is the quality gate — 19 import ports, 11 PSIC-exempted (PN 43/2023). A PSIC-certified load is your shield against contamination-rejection at the Indian port. Stack: CIF + duty + port handling + inland + PSIC fee = the price the buyer pays. Non-ferrous SWS: copper/aluminium/brass add 0.25% SWS (10% of BCD) → 2.75% permanent; ferrous/lead/zinc 0%. IGST 18% is recoverable input credit for the registered importer.