Compulsory Online Registration for Computer Chip Import (CHIMS) from 1 Aug

·    ICs in Heading 8542 in the all sub-headings including Parts of ICs covered

·    Forced manufacturing of ICs at gun point will yield little, says Industry

·    Non Tariff Barrier to Imports subject to Fees is Indirect way of Licensing, which is Violation of WTO as well as IT Agreements

·    Measures serve no purpose since Bills of Entry on which Registration number must be mentioned has all the details of the items along with Importer Name, Packing List, Invoice, Country of Origin etc.

·    Manufacturing of Electronics will become more expensive due to compliance cost, import of complete item with ICs inside as well as components such as PCBA will be encouraged, goes against policy of promotion value addition

·    There is no manufacturing of ICs in the Country which needs protection or encouragement

·    Exclusive Policy to bring investment to Fab has yielded no result, this measure too will yield little

·    DGFT to Manage CHIMS will only duplicate Customs EDI

[Notification No. 05/2015-2020 dated 10 May 2021]

Subject : Amendment in import policy of Integrated Circuits (1Cs) and incorporation of policy condition for HS Codes 85423100, 85423900 , 85423200, 85429000, and 85423300, of Chapter 85 of ITC (HS), 2017, Schedule - I (Import Policy).

S.O. 1840(E).—In exercise of powers conferred by Section 3 read with Section 5 & Section 9 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Po l icy, 2015-2020, as amended from time to time, the Central Government hereby amends the import policy of following items under chapter 85 of I TC (HS), 2017, Schedule - I (Import Policy):

HS Code

Item Description

Present Policy

Revised Policy

Present Policy Condition

Revised Policy Condition

854231 00

Electronic integrated circuits:
--Processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits

Free

Free subject to compulsory registration under Chip Imports Monitoring System (CHIMS)

-

Subject to Policy Condition 6 of Chapter-85

85423200

Electronic integrated circuits:
--Memories

Free

Free subject to compulsory registration under Chip Imports Monitoring System (CHIMS)

-

Subject to Policy Condition 6 of Chapter-85

85423300

Electronic integrated circuits:
--Amplifiers

Free

Free subject to compulsory registration under Chip Imports Monitoring System (CHIMS)

-

Subject to Policy Condition 6 of Chapter-85

85423900

Electronic integrated circuits:
 -- Other

Free

Free subject to compulsory registration under Chip Imports Monitoring System (CHIMS)

-

Subject to Policy Condition 6 of Chapter-85

85429000

Parts

Free

Free subject to compulsory registration under Chip Imports Monitoring System (CHIMS)

-

Subject to Policy Condition 6 of Chapter-85

2. A new Policy Condition No. 6 is being added in Chapter-85 of ITC (HS), 2017, Schedule-I (Import Policy) which reads as under:

i.     The Chip Imports Monitoring System (CHIMS) shall require importers to submit advance information in an online system for import of items and obtain an automatic Registration Number by paying registration fee of Rs. 1 per thousand subject to minimum of Rs. 100/ and maximum of Rs. Rs 500 on CIF value.

ii.    The importer can apply for registration not earlier than 60th day before the expected date of arrival of import consignment and can apply till the date of arrival of the import consignment. The Automatic Registration Number shall remain valid for a period of 75 days. Importer shall have to enter the Registration Number and expiry date of Registration in the Bill of Entry to enable Customs for clearance of consignment.

3. The facility of online testing of CHIMS, without payment of registration fee, will be available on www.imports.gov.in with effect from 01.05.2021 on trial basis. The CHIMS will be effective from 01.08.2021, i.e., Bill of Entry on or after 01.08.2021 for items as listed in this Notification shall be governed by CHIMS. Accordingly, the facility of online Registration for CHIMS will be available with effect from 01.08.2021.

4. Effect of the Notification: Import policy of item listed above shall be subject to Chip Imports Monitoring System (CHlMS) with effect from 01.08.2021.

[F. No. 01/89/180/29/AM-20/PC-2(A)/E-24342]