Metal scrap import and export in Pakistan carries more checks than an ordinary shipment, because the rules change with the metal, its form, and the direction of trade. A compliant shipment rests on customs classification, trade restrictions, documents, and taxes. Scrap and processed metal products can follow different tariff headings and rules.
What Is Metal Scrap Recycling, and How Does It Work in Pakistan?
Metal scrap recycling is the business of collecting used or waste metal, sorting and processing it by type, and selling it for melting or reuse. In Pakistan, copper, aluminium, and steel scrap comes from local sources or from imports. Traders sell it to manufacturers and steel melters (mills that melt scrap to make new steel), or export it.
The first thing to settle for a metal recycling business in Pakistan is its role in the trade, because registration and paperwork differ for importers, manufacturers, and exporters.
Can Businesses Import Copper, Aluminium, and Steel Scrap into Pakistan?
Yes, in most cases. The Ministry of Commerce’s Import Policy Order, 2022 allows imports of all goods unless the order bans or restricts them. Copper, aluminium, and steel scrap are not banned as a group. Some forms carry conditions, and hazardous waste under the Basel Convention (the international treaty on hazardous waste shipments) is banned.
Among the import and export regulations for scrap metal, this order governs what may enter Pakistan. Its conditions attach to exact materials and forms, which classification settles. Hazardous content is a separate, shipment-by-shipment check.
What Are the Import Requirements for Copper Scrap?
The same order sets no condition specific to copper scrap. A copper scrap import into Pakistan falls under heading 74.04 of the Harmonized System (HS), the international numbering system for traded goods. The Pakistan Customs Tariff (PCT), which extends HS headings into longer national codes, splits this heading into brass scrap and other copper scrap.
What Rules Apply to Aluminium Scrap Imports?
The order sets no condition specific to aluminium scrap either. For an aluminium scrap import into Pakistan, the PCT separates scrap of auto parts from other aluminium scrap, and the two codes carry different customs duty. Residues containing mainly aluminium are a separate product. The order allows them only for industrial consumers (businesses using the material in their own production) with recycling facilities, subject to environmental clearances and pre-shipment inspection.
How Is Steel Scrap Imported into Pakistan?
Steel scrap import in Pakistan carries the most detailed conditions. Re-rollable scrap (steel pieces that mills roll into new products) is allowed only if each piece is no wider than 1,000 mm, at least 6 mm thick, and no longer than 2.5 m. Girders and pipes are limited to 1.5 m.
Can Recycled Copper, Aluminium, and Steel Be Exported from Pakistan?
Yes, with conditions. Pakistan’s Export Policy Order, 2022 allows the export of all goods except those on its banned list, and metal scrap is not on that list. Some export conditions still apply, set partly by the order and partly by Federal Board of Revenue (FBR) notifications.
Metal scrap export from Pakistan is shaped by these conditions:
- Foreign enterprises. The order’s conditional-export schedule says metal exports by foreign enterprises follow a price-checking mechanism set by the Ministry of Petroleum and Natural Resources.
- India. The order bars all exports to India, except therapeutic products regulated by the Drug Regulatory Authority of Pakistan.
- Regulatory duty. FBR lists Statutory Regulatory Order (SRO) 482(I)/2007 among its active export notifications. The SRO levies a 25% regulatory duty (an extra duty set by notification) on exports of ferrous (iron and steel) and non-ferrous (such as copper and aluminium) waste and scrap, and on bars, rods, ingots, slabs, and billets (semi-finished metal forms) made from that scrap.
The duty’s application is confirmed with Customs before a contract is priced. Unprocessed scrap, processed scrap, and finished recycled products can carry different classifications and trade conditions. The buyer’s country applies its own import rules for scrap.
Exports are declared through Pakistan Single Window (PSW), Pakistan’s online trade platform. The State Bank of Pakistan’s Exchange Policy Department Circular Letter No. 03 of 2025 requires the exporter to file an undertaking (a written commitment) in PSW to receive payment through an authorised dealer bank (a bank licensed to handle foreign exchange).
What HS Codes Apply to Copper, Aluminium, and Steel Scrap?
Copper scrap falls under HS heading 74.04, aluminium scrap under 76.02, and iron and steel scrap under 72.04. FBR’s Pakistan Customs Tariff 2026-27 extends each heading into longer PCT codes, and the full code determines the duty and any conditions. The HS code for metal scrap in Pakistan is only the starting point.
| Material | HS heading | PCT codes in the 2026-27 tariff |
| Copper waste and scrap | 74.04 | 7404.0010 (brass scrap) and 7404.0090 (other) |
| Aluminium waste and scrap | 76.02 | 7602.0010 (auto parts) and 7602.0090 (other) |
| Iron and steel waste and scrap | 72.04 | 7204.1010 to 7204.5000, split by type, including re-rollable, auto-parts, and compressor scrap |
What Documents Are Needed for Metal Scrap Import and Export?
The core papers are the same for most scrap shipments. Extra permits and certificates depend on the material, its form, and whether the scrap is coming in or going out. Every shipment is declared electronically through PSW, with weights and descriptions matched across all documents before filing.
These documents make up a scrap shipment file, with certificates added where the scrap needs them:
- Commercial invoice. The invoice states the metal, its form, the weight, and the value.
- Packing list. The list shows how each lot is packed and what it weighs.
- Bill of lading or air waybill. The transport document confirms that the carrier has received the cargo.
- Goods Declaration (GD). The GD, filed in PSW, records the consignment, payment, commodity, and document details.
- Shipment-specific certificates. Aluminium residues, for example, need environmental clearances.
Before the first declaration, the importer or exporter needs a National Tax Number (NTN) and PSW access, both part of the import and export registration requirements in Pakistan. FBR also requires importers and manufacturers other than cottage industries to register for sales tax.
What Customs Duties and Taxes Apply to Metal Scrap in Pakistan?
The tax on a metal scrap shipment depends on its PCT code, its customs value (the value Customs uses to assess duty), and the rules in force on the date of import or export. Customs duty is the first layer on imports. Other duties and taxes can apply on top.
Classification is settled before costing, because the PCT code fixes the customs duty. Customs duty in the 2026-27 tariff is 0% for copper scrap and most other scrap codes, and 5% for re-rollable steel scrap. Iron and steel scrap of auto parts carries 25%, or 0% when it arrives in pressed bundles, and aluminium scrap of auto parts carries 30%.
These official rules set the other charges:
- Regulatory duty on imports. SRO 1064(I)/2026, in force from 1 July 2026, levies regulatory duty on imports of ferrous scrap, except the auto-parts scrap codes 7204.1020 and 7204.4920.
- Additional customs duty. SRO 1063(I)/2026 sets this further duty by customs duty slab, meaning the rate band a PCT code falls into.
- Sales tax. FBR Circular No. 02 of 2025-26 notes that importers of iron scrap outside the Export Facilitation Scheme (EFS) pay tax at import, and it made their local supplies to steel melters taxable.
- Export regulatory duty. SRO 482(I)/2007 sets a 25% duty on scrap exports.
Can Metal Recycling Businesses Use Pakistan’s Export Facilitation Scheme?
Possibly, if the business manufactures goods for export. The EFS lets eligible exporters import inputs for export production without certain duties and taxes, subject to FBR authorisation. Scrap imports do not qualify automatically, because SRO 1435(I)/2025, dated 5 August 2025, limits how scrap is treated under the scheme.
Under those limits, compressor scrap and motor scrap can be imported under EFS for their copper content only. The copper allowance is 10% of the weight for motor scrap and 8% for compressor scrap.
Customs duty, additional customs duty, regulatory duty, sales tax, and withholding tax (income tax collected in advance) apply at import on the steel portion. The steel can be sold only to sales-tax-registered melters. The wider Export Facilitation Scheme requirements are covered in DSI Consultancy’s EFS guide.
What Common Customs Problems Do Metal Scrap Traders Face?
Customs compares each scrap consignment against its documents. A gap between the papers and the cargo can lead to examination, a query, or a reassessment of duty. Scrap metal customs clearance in Pakistan goes most smoothly when these points are settled before the GD is filed:
- Incorrect PCT code. Auto-parts scrap and other scrap carry different duties, so the code follows the load’s actual contents.
- Mismatched weights. Weights come from an accurate weighing, because a mismatch with the examination result raises a query.
- Unclear descriptions. “Mixed scrap” does not show which code applies. A clear description names the metal, grade, and form.
- Contaminated material. Scrap carrying hazardous waste falls under the Basel Convention ban, so contamination is checked before loading.
- Missing documents. Clearance waits for any missing certificate, so each scrap type’s conditions are confirmed before shipment.
- Valuation questions. Duty is charged on the customs value. Contract and payment records back up the invoice value if Customs queries it.
How Can DSI Consultancy Help Metal Scrap Importers and Exporters?
DSI Consultancy supports scrap traders with classification, documents, and compliance before a consignment reaches Customs. Its services include HS code and duty assessment, import and export clearance documentation, export compliance, EFS support, and NTN and sales tax registration. Clearance decisions rest with Customs.
Small and medium-sized enterprises (SMEs) can also use DSI Consultancy’s business compliance support for SMEs and exporters for regulatory guidance.
Plan your next copper, aluminium, or steel scrap consignment with DSI Consultancy, from customs clearance for imports and exports in Pakistan to exporter advisory, before it reaches the port.
Frequently Asked Questions
Is copper scrap import allowed in Pakistan?
Yes. The Import Policy Order, 2022 allows imports unless the order bans or restricts the goods, and it sets no condition specific to copper scrap. Copper scrap falls under HS heading 74.04. A consignment containing hazardous waste under the Basel Convention is still banned.
Can steel scrap be exported from Pakistan?
Yes. The Export Policy Order, 2022 does not list steel scrap among banned exports. FBR’s active export notifications include SRO 482(I)/2007, which levies a 25% regulatory duty on exports of ferrous and non-ferrous scrap. The duty’s current application is confirmed with Customs before a contract is priced.
What is the HS code for aluminium scrap?
Aluminium waste and scrap falls under HS heading 76.02. In Pakistan’s 2026-27 customs tariff, scrap of auto parts is classified under 7602.0010, and other aluminium scrap under 7602.0090. The consignment’s contents determine the code, and the code determines whether customs duty is 30% or 0%.
What documents are needed to import scrap metal?
A scrap import normally needs a commercial invoice, packing list, bill of lading, and a Goods Declaration filed through Pakistan Single Window. Aluminium residues also need environmental clearances. Re-rollable steel scrap is checked against the Import Policy Order’s size limits before shipment.
Do scrap recycling businesses need sales tax registration?
Often, yes. FBR requires importers to register for sales tax, along with manufacturers other than cottage industries. Steel left over from EFS motor and compressor scrap can be sold only to sales-tax-registered melters. Local supplies of iron and steel scrap by non-EFS importers to steel melters are also taxable.
Can an exporter use EFS for recycled metal products?
Possibly. The scheme covers inputs used to make goods for export, subject to FBR authorisation. For scrap, compressor scrap qualifies only for its copper content at 8% of weight, and motor scrap at 10%. The remaining steel is taxed at import. Eligibility depends on the business’s export production.