DGFT Clarification on Implementation of Compulsory Registration for Paper (PIMS)

· Samples for FOB value of Rs. 10,000/- irrespective of quantity, shall be exempted from requirement of compulsory registration under PIMS.

· Exemption from PIMS can be considered for non-commercial import under common IECs by individuals and Govt. agencies on case to case basis, in terms of Para 2.58 of the Foreign Trade Policy

· PIMS shall be mandatory regardless to the purpose of the imports of paper products under any scheme (Advance Authorization, IGCR/EOU/SEZ etc.).

· 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.

[DGFT Policy Circular No. 45/2015-20 dated 23 January, 2023]

Subject: Implementation of Paper Import Monitoring System (PIMS) -Clarification.

Import of products under Chapter 48 (total 201 tariff lines) of Schedule-I (Import Policy) of lTC (HS), 2022 are permitted subject to compulsory registration under Paper Import Monitoring System (PIMS), vide DGFT Notification No. 11/2015-20 dated 25th May, 2022.

2. Various representations have been received in DGFT from trade & industry seeking clarification on the applicability of the said Notification dated 25th May, 2022 in certain situations. The matter has been examined in consultation with the Department of Commerce (DoC) and Department for Promotion of Industry and Internal Trade (DPIIT). Accordingly, the issues raised and responses thereto are given below:

(i) Whether imports through Air mode are exempted from Registration from PIMS?

Response: In Paper, there are no small volume/high value goods on which Air-Cargo is justified. Therefore, registration under PIMS shall be mandatory regardless to mode of transportation.

(ii) Whether import of samples of paper is exempted from Registration from PIMS?

Response: Import consignment of samples for FOB value of Rs. 10,000/- irrespective of quantity, shall be exempted from requirement of compulsory registration under PIMS.

(iii) Can returnable paper items imported on temporary import be exempted from PIMS registration and given fee waiver?

Response: Since Paper products are not small volume/high value goods, therefore, registration under PIMS shall be compulsory regardless to the purpose of imports of paper products.

(iv) Whether registration from PIMS is exempted for import under common IEC by individuals and Government agencies?

Response: Registration under PIMS shall be compulsory for imports of all notified paper products. However, exemption from PIMS can be considered for non-commercial import under common IECs by individuals and Govt. agencies on case to case basis, in terms of Para 2.58 of the Foreign Trade Policy.

(v). Will PIMS be applicable to imports through Advance Authorisation, DFIA and ICGR?

Response: PIMS shall be mandatory regardless to the purpose of the imports of paper products under any scheme (Advance Authorization, IGCR/EOU/SEZ etc.).

(vi) Whether PIMS Registration is required both at the point for import into SEZ/FTWZ and at the time of Customs Clearance from SEZ to DTA? Whether registration is required for EOUs as well at the time of import by an EOU?

Response: 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. 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 items falls under any of the tariff.

This issues with the approval of competent authority

(Issued from F. No. M-5975/AM04/PC.2[A]/E-5984)