DGFT Clarification on Compulsory Registration for Paper (PIMS)

· SEZ and EoU too must face Paper Import Registration under PIMS

· PIMS Registration required at the point of import by a Unit in SEZ/FTWZ or at the time of import by an EOU of the items covered under PIMS

· PIMS Registration not required by the DTA Unit at the time of Customs Clearance from the SEZ/FTWZ/EOU to DTA if no processing has taken place of the item of paper that has already been registered under PIMS at the time of entry into a SEZ/FTWZ/EOU

[Policy Circular No. 41/2015-2020 dated 5 July 2022]

Subject: Implementation of Paper Import Monitoring System (PIMS) - Clarification w.r.t. applicability of PIMS at the time of import at SEZ/FTWZ/EOU and further import into DTA.

The DGFT, vide Notification No. 11/2015-20 dated 25.05.2022, has introduced Paper Import Monitoring System (PIMS), by amending import policy of

..

201 tariff lines under Chapter 48 of ITS (HS), 2022, Schedule -1 (Import Policy) from 'Free' to 'Free' subject to compulsory registration under PIMS.

2. The Directorate has received a query whether PIMS Registration is required both at the point for import into Special Economic Zone ("SEZ")/ Free Trade and Warehousing Zones ("FTWZ") and at the time of Customs Clearance from SEZ to Domestic Tariff Area ("DTA") and also whether the registration is required for EOUs as well at the time of import by an EOU.

3. The matter has been examined in consultation with the Department for Promotion of Industry and Internal Trade (DPIIT) and based upon their inputs, the following is clarified:

(i) PIMS Registration shall be required at the point of import by a Unit in SEZ/FTWZ or at the time of import by an EOU of the items covered under PIMS.

(ii) PIMS Registration shall not be required by the DTA Unit at the time of Customs Clearance from the SEZ/FTWZ/EOU to DTA if no processing has taken place of the item of paper that has already been registered under PIMS at the time of entry into a SEZ/FTWZ/EOU. However, if processing has taken place in the SEZ/FTWZ/EOU with change in HS Code at 8-Digit level, then the importer in DTA will require to register under PIMS, if the processed item falls under any of the tariff lines covered under PIMS.

This issues with the approval of Director General of Foreign Trade.

(Issued from F. No. M-5975/AM-04/PC-2[A]/E-5984)