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 15^th 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 5^th 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