Import of Screws below CIF Value Rs. 129 per kg Prohibited

·         Govt Imposes Ban on Imports of Cheap Screws

·         Screws Import Attracts 15% Basic Duty with Additional Duties. The Total is 37.470% with MIP of Rs. 129 per kg. Import will be over invoiced fetch. Each kilo of screw wights 250 number. This means screws below 50 paise will be prohibited. What if the screws in a consignment are not charged, free of cost? Yet another irritant in the supply chain!

·         “Bolts, Nuts and Fasteners” are subject to BIS from July 2023. Thus imports all are already prohibited

The government on Wednesday (03.01.2024) imposed a ban on imports of certain kinds of screws priced lower than Rs 129 per kg, a move which would help promote domestic manufacturing. "The import policy of screws...is revised from free to prohibited. However, import shall be free if CIF (cost, insurance, freight) value is Rs 129 or above per kg," the Directorate General of Foreign Trade (DGFT) said in a notification.

Products included in the ban are coach crews, machine screws, wood screws, hook screws, and self-tapping screws.

India imported screws, bolts, nuts, washers and similar articles worth USD 827 million in 2022-23 and USD 468.15 million during April-October this fiscal.

These are imported from countries like France, China, Australia, Bangladesh, Brazil, and Belgium.

 

DGFT amends import policy condition for ‘Screws’ by revising it from ‘Free’ to ‘Prohibited’; However, clarifies that import shall be ‘Free’ if CIF value if Rs. 129 or above per kg; With the approval of Minister of Commerce and Industry, amends specific HS Codes covered under Chapter 73 of the ITC (HS) 2022, Schedule -I (Import Policy) which includes Coach screws, Machine screws, Other wood screws, Screw hooks and screw rings, Self-tapping screws and bolts etc.

Policy Condition 2 and 3

2.     Import under all HS codes of this Chapter shall require compulsory registration under Steel Import Monitoring System (SIMS).

[Condition No. 2 inserted by 33-Ntfn/28.09.2020]

3.     (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 Importing Monitoring System (SIMS) 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.500 /-. The importer can apply for registration not earlier than 60th 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.

[Condition 3c amended by Ntfn 28/28.08.2023].

(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 21.11.2019, i.e. Bill of Entry on or after 21.11.2019 for items listed in the Annex to this Notification shall be governed by SIMS.

 

[DGFT Notification No. 55/2023 dated 3 January, 2024]

Effect of the notification: The Import Policy of Screws under lTC (HS) Codes 73181110, 73181190, 73181200, 73181300, 73181400, 73181500 and 73181900 is revised from "Free" to "Prohibited". However, import shall be "Free" if CIF value is Rs. 129/- or above per Kg. This is issued with the approval of Minister of Commerce & Industry.

Subject: Amendment in Import Policy and Policy condition of Screws covered under HS code 7318 of Chapter 73 of Schedule -1 (Import Policy) of lTC (HS) 2022.

S.O. (E): In exercise of powers conferred by Section 3 and Section 5 of Foreign Trade (Development & Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby amends the import policy and policy condition for specific HS codes covered under Chapter 73 of the lTC (HS), 2022, Schedule-! (Import Policy) as under:

HS code

Item Description

Existing Import Policy

Existing Policy Condition

Revised Import Policy

Revised Policy Condition

73181110

-Threaded articles: -- Coach Screws --- Machine screws

Free

Subject to Policy condition no. 2 and 3 of this Chapter

Prohibited

However, import is "Free" if CIF value is Rs. 129/- or above per Kg and subject to Policy condition no. 2 and 3 of this Chapter

73181190

-Threaded articles: -- Coach Screws --- Other

Free

Subject to Policy condition no. 2 and 3 of this Chapter

Prohibited

However, import is "Free" if CIF value is Rs. 129/- or above per Kg and subject to Policy condition no. 2 and 3 of this Chapter

73181200

- Threaded articles : -- Other !wood screws

Free

Subject to Policy condition no. 2 and 3 of this Chapter

Prohibited

However, import is "Free" if CIF value is Rs. 129/- or above per Kg and subject to Policy condition no. 2 and 3 of this Chapter

73181300

- Threaded articles - Screw hooks and screw rings

Free

Subject to Policy condition no. 2 and 3 of this Chapter

Prohibited

However, import is "Free" if CIF value is Rs. 129/- or above per Kg and subject to Policy condition no. 2 and 3 of this Chapter

73181400

- Threaded articles : -- Self- tapping screws

Free

Subject to Policy condition no. 2 and 3 of this Chapter

Prohibited

However, import is "Free" if CIF value is Rs. 129/- or above per Kg and subject to Policy condition no. 2 and 3 of this Chapter

73181500

-   Threaded articles : -- Other screws and bolts, whether or not with their nuts or washers

Free

Subject to Policy condition no. 2 and 3 of this Chapter

Prohibited

However, import is "Free" if CIF value is Rs. 129/- or above per Kg and subject to Policy condition no. 2 and 3 of this Chapter

73181900

- Threaded articles : -- Other

Free

Subject to Policy condition no. 2 and 3 of this Chapter

Prohibited

However, import is "Free" if CIF value is Rs. 129/- or above per Kg and subject to Policy condition no. 2 and 3 of this Chapter

{Issued from File No. 01/89/180/13/AM-23/PC-2[A] /E-37595)