BRUSSELS (Reuters) - India will be among the countries barred from importing EU metal waste, including aluminium scrap, under a new law due to take effect in May 2027, according to a European Commission proposal setting out exemptions for non-OECD countries.

The Commission published the proposal on Friday, confirming an earlier Reuters report, and opened a public consultation on the exemptions list until October 16.

The move comes after the Commission earlier this month ditched a plan to impose a 15% export duty on aluminium scrap following pressure from the biggest buyer — India. Disagreements among EU officials diluted the trade proposal by exempting India, significantly reducing its impact.

The Commission has argued that the same objective can be achieved through the bloc's waste shipment rules rather than trade measures.

Industry group European Aluminium remains unconvinced, however, having viewed the proposed export duty as crucial to keeping more of the low-cost raw material within Europe for struggling smelters.

The Waste Shipment Regulation will take effect in May 2027. The Commission said 32 non-OECD countries applied for exemptions covering non-hazardous waste categories including paper, plastics, rubber, metal and glass. Exemptions are granted only if applicants can demonstrate the waste will be treated in an "environmentally sound manner".

Metal waste faces stricter scrutiny because it presents a "higher hazard profile ... due to the potential presence of persistent and toxic heavy metals," the Commission said.

The EU executive added that the exemptions list, known as a delegated act, will be updated regularly, at least every two years, and countries will be able to reapply.