Steel in Chapters 72 & 73 subjected to Compulsory Registration under SIMS (Steel Import Monitoring System)

DGFT has issued a notification dated 05.09.2019 to notify some 284 items covering Basic steel (Chapter 72), Steel products (Chapter 73) and Chapter 86 – Railway rolling stock in order to control imports.

Highlights

·      This is non-tariff barrier which requires prior registration for steel imports. Window will close 15 days before expected date of import. Process can begin only 60 days before date of import. Thus window opens only for only 45 days.

·      There are no exemptions for export as yet.

·      Mechanical items for manufacture of finished goods are well covered. This will affect engineering goods significantly.

·      More details are awaited as a series of consequent amendments like registration procedure. These will be intimated in DINDEX from time to time.

·      There is a fee of Re 1/- per 1000 to get the Registration number, subject to a maximum of Rs 1 lac.

News Coverage

In a notification, the directorate said that the Steel Import Monitoring System (SIMS) will require importers to submit advance information in an online system for import of these items and obtain an automatic registration number by paying specified amount of fee.

The government has made it mandatory for traders to register themselves with Steel Import Monitoring System to import 215 iron and steel products, according to a notification issued on Thursday, 5 September 2019. The Directorate General of Foreign Trade (DGFT), under the Commerce Ministry, said that “import policy” for these 215 items has been revised from ‘free’ to ‘free’ subject to compulsory registration under “SIMS”.

These items include certain flat-rolled products; some stranded wire, ropes, cables; certain items of springs and leaves for springs of iron and steel; tubes, pipes and hollow profiles; diesel-electric locomotives; and some parts of railways.

In a notification, the directorate said that the Steel Import Monitoring System (SIMS) will require importers to submit advance information in an online system for import of these items and obtain an automatic registration number by paying specified amount of fee.

“The importer can apply for registration not earlier than 60th day and not later than 15th day before the expected date of arrival of import consignment,” it added. The registration number will be valid for a period of 75 days.

The importer will have to enter the registration number and expiry date of registration in the bill of entry to enable customs to clear consignment. The online registration will be available from September 16 this year. The SIMS, under the Department of Commerce, collects and publishes data of steel mill product imports. By design this information provides stakeholders and public valuable information on steel trade with the US.

Hailing the decision, an official in the steel ministry said that the move will help in promoting Make in India of these products and increase availability of quality products. In a separate notification, the DGFT relaxed norms for import of Chlorotrifluoroethene, a chemical used as a refrigerant. “Import policy of Chlorotrifluoroethene is revised from restricted to free,” it added.

[DGFT Notification No. 17 dated 5th September 2019]

Effect of the Notification: Specific items in Chapter 72, 73 and 86 shall be subject to Steel Import Monitoring System (SIMS).

Subject: Amendment in import policy of Iron & Steel and incorporation of policy condition in Chapter 72, 73 and 86 of ITC (HS), 2017, Schedule - I (Import Policy).

In exercise of powers conferred by Section 3 & 9 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby amends the import policy from 'free' to 'free subject to compulsory registration under Steel Import Monitoring System (SIMS)' for the following items under Chapter 72, 73 and 86 of ITC (HS), 2017, Schedule- I (Import Policy) and insert a new policy Condition to these three Chapters:

a. Items: As per the Annex.

b. Policy Condition to Chapter 72, 73 and 86 of ITC (HS): Import policy for the items as listed in the Annex has been revised from 'free' to ' free subject to compulsory registration under Steel Import Monitoring System (SIMS)'.

c. The Steel Import Monitoring System (SIMS) shall require importers to submit advance information in an online system for import of items in the Annex and obtain an automatic Registration Number by paying registration fee of Rs.1 per thousand subject to minimum of Rs.500/ and maximum of Rs. 1 lakh on CIF value. The importer can apply for registration not earlier than 60th day and not later than 15th day before the expected date of arrival of import consignment. The automatic Registration Number thus granted shall remain valid for a period of 75 days.

d. 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.

e. The SIMS will be effective from 01.11.2019, i. e., Bill of Entry on or after 01.11.2019 for items as listed in the Annex to this Notification shall be governed by SIMS. The facility of on line Registration will be available with effect from 16/09/2019.

This issues with the approval of Minister of Commerce & Industry.

Annex

S.No.

HS Code

S.No.

HS Code

S.No.

HS Code

 

1

72044900

96

72085290

191

73269080

 

2

72042190

97

72283011

192

73045930

 

3

72251100

98

72112950

193

73021010

 

4

72026000

99

72193410

194

73182200

 

5

72104900

100

72191190

195

73259910

 

6

72251920

101

72031000

196

73045910

 

7

72254019

102

72261100

197

73259999

 

8

72083840

103

72254012

198

73043931

 

9

72022100

104

72082730

199

73239990

 

10

72085110

105

72286012

200

73121020

 

11

72106100

106

72149990

201

73043939

 

12

72107000

107

72171010

202

73072900

 

13

72083930

108

72193320

203

73041990

 

14

72071290

109

72051011

204

73041190

 

15

72091790

110

72283024

205

73079190

 

16

72202090

111

72222019

206

73063090

 

17

72253090

112

72249010

207

73262090

 

18

72083790

113

72085190

208

73181400

 

19

72103090

114

72126000

209

73090090

 

20

72083940

115

72259100

210

73062100

 

21

72083990

116

72089000

211

73021090

 

22

72101290

117

72223099

212

73084000

 

23

72255010

118

72222099

1

 
213

73151290

 

24

72209090

119

72101210

214

73239390

 

25

72193390

120

72051021

215

73199000

 

26

72142090

121

72085210

216

73182300

 

27

72199090

122

72082740

217

73083000

 

28

72284000

123

72082630

218

73151100

 

29

72029300

124

72123090

219

73202000

 

30

72283029

125

72052100

220

73110090

 

31

72021100

126

72221119

221

73071900

 

32

72193490

127

72104100

222

73242900

 

33

72299090

128

72061090

223

73042400

 

34

72283019

129

72155090

224

73079290

 

35

72210090

130

72082590

225

73201011

 

36

72249091

131

72112990

226

73011000

 

37

72091690

132

72099000

227

73043119

 

38

72279040

133

72283022

228

73249000

 

39

72191200

134

72122090

229

73181190

 

40

72279090

135

72223019

230

73051121

 

41

72173010

136

72181000

231

73072100

 

42

72191300

137

72139990

232

73261910

 

43

72083690

138

72172020

233

73042910

 

44

72259200

139

72286011

234

73159000

 

45

72021900

140

72254011

235

73043919

 

46

72042990

141

72029100

236

73063010

 

47

72083830

142

72139920

237

73079390

 

48

72259900

143

72083610

238

73182100

 

49

72193590

144

72269952

239

73158900

 

50

72083890

145

72051019

240

73102910

 

51

72105000

146

72029990

241

73219000

 

52

72091890

147

72192112

242

73269060

 

53

72029200

148

72230092

243

73141490

 

54

72179099

149

72230099

244

73089010

 

55

72172010

150

72143000

245

73151900

 

56

72189910

151

72159090

246

73045920

 

57

72022900

152

72051090

247

73231000

 

58

72106900

153

72045000

248

73102190

 

59

72269930

154

72139120

249

73211110

 

60

72024100

155

72192219

250

73065000

 

61

72027000

156

72151000

251

73045110

 

62

72082790

157

72193420

252

73141990

 

63

72024900

158

72011000

253

73101090

 

64

72251990

159

72121090

254

73241000

 

65

72285090

160

72193290

255

73170099

 

66

72041000

161

72202029

256

73170019

 

67

72044100

162

72269210

257

73069019

 

68

72109090

163

72286094

258

73121010

 

69

72139190

164

72199013

259

73182910

 

70

72191400

165

72221999

260

73043921

 

71

72269990

166

72193190

261

73141410

 

72

72281090

167

73269099

262

73023000

 

73

72091620

168

73181500

263

73259930

 

74

72083740

169

73089090

264

73182400

 

75

72052990

170

73181600

265

73066900

 

76

72125090

171

73064000

266

73269070

 

77

72251910

172

73182990

267

73043139

 

78

72124000

173

73049000

268

73239490

 

79

72082690

174

73044900

269

73072200

 

80

72091720

175

73079990

270

73144190

 

81

72071920

176

73066100

271

73259920

 

82

72192190

177

73129000

272

86021000

 

83

72254013

178

73209090

273

86079990

 

84

72173020

179

73121090

274

86090000

 

85

72029932

180

73061100

275

86040000

 

86

72163300

181

73102990

276

86071910

 

87

72083730

182

73261990

277

86031000

 

88

72249099

183

73181900

278

86079100

 

89

72173030

184

73044100

279

86072900

 

90

72299032

185

73042990

280

86071990

 

91

72192390

186

73069090

281

86073090

 

92

72288090

187

73041110

282

86080090

 

93

72230091

188

73042390

283

86072100

 

94

72193310

189

73041910

284

86080030

 

95

72052910

190

73251000