Highlights of the 2019 Amendments in Import Policy for Iron and Steel

DGFT, under the Foreign Trade Act, 1992, has issued a notification amending the Import Policy for around 284 steel and related items. These items relate to chapters 72, 73 and 86 of ITC (HS), 2017, in Schedule –I. The and has inserted additional Policy conditions in the Import Policy for Iron and Steel and changed the status of these items from `free’ to ‘free, subject to compulsory registration on an import management system managed by DGFT. In this article, we will look at the items listed in the policy and also require furnishing advance information in an online system and obtaining an automatic registration number.

Amendment to the Import Policy for Iron and Steel

The Steel Import Monitoring System^[1] (SIMS) will require importers to submit advance information through an online system to import the listed items and obtain an automatic registration number by paying a specified fee. These items include stranded wire, ropes, cables, certain flat-rolled products, and leaves for springs of iron and steel tubes, diesel-electric locomotives,  pipes and hollow profiles and some parts of railways.

The government has made it mandatory for traders to register with the Steel Import Monitoring System (SIMS) under the Import Policy for Iron and Steel, to import a list of iron and steel products, as mentioned in the following section. The Policy Condition to Chapter 72. 73 and 86 of ITC (HS): Import policy for the items has been revised from ‘free’ to ‘free subject to compulsory registration. These chapters include

• Chapter 72: Basic steel
• Chapter 73: Steel Products, and
• Chapter 86: Railway rolling stock to control imports

List of Items identified under the Import Policy for Iron and Steel

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

Steel Import Monitoring System

The new monitoring system, i.e. SIMS, now requires importers to submit advance information online to import items mentioned in the table and obtain an automatic Registration Number. SIMS has been effective from 01.11.2019. Therefore, the Bill of Entry on or after 01.11.2019 for the items listed above is now governed by SIMS. The facility’s online registration has been made available from 16.09.2019 onwards. This system is supposed to act as a non-tariff barrier, requiring prior steel import registration under the amended Import Policy for Iron and Steel.

Applicants can register with the system by paying a registration fee of Rs.1 per thousand, subject to a maximum of Rs. 1 lakh and a minimum of Rs.500/ on CIF value. The importer can only apply for registration not earlier than sixty days and not later than 15 days before the expected arrival date of the import consignment. The automatic Registration Number thus granted remains valid for 75 days.

The window will close 15 days before the expected date of import. The process can begin only 60 days before the date of import and not later than 15 days before the arrival date of the import consignment.

The registration under the amended Import Policy for Iron and Steel is subject to payment of a registration fee of Rupees 1/- per 1000 to up to a maximum of Rs 1 lakh on the CIF value.

Important points to remember under Import Policy for Iron and Steel

For application in case of new registration under the Import Policy for Iron and Steel for the import of Items defined in the ITC (HS) 2017, the importer needs to

• Register on the DGFT Website
• Link their existing IEC
• Register the DSC

After following these stages, the applicant can apply for SIMS under new authorisation.

Over 524 steel tariff lines (8-digit HS Code) require registration for imports into India under the Import Policy for Iron and Steel. All steel products that are entering into India require prior registration before imports.

The license must be filled out before submitting the Bill of Entry with Customs. It should be filled out 15 to 60 days before the expected arrival of the imports into India, and the automatic registration number granted shall be valid for 75 days.

Provisions related to the import of Metallic Scrap

In case of import of Metallic Waste and Scrap of any form of metallic scrap or waste will be subject to the condition that it will not contain any hazardous mines, shells, toxic waste, radioactively contaminated scrap containing radioactive material, any arms, ammunition, live or used cartridge or any other explosive material in any form either used or otherwise.

Other Services hosted by DGFT under the Import Policy for Iron and Steel

• Import Authorisation for Restricted Imports
• Tariff Rate Quota
• Registration Certificate for Import
• Coal Import Monitoring System
• Copper Aluminium Import Monitoring System
• Chip Import Monitoring System

Conclusion

DGFT, through its power under the FTDR Act, notifies restrictions, quotas or conditions on importing goods into India. These restrictions require a licence or registration to be applied for and approved before imports. The modules released by the government allow importers to apply for import licences and other registrations, which DGFT issues as per the Import Policy for Iron and Steel. One license application can cover multiple products. Under the Import Policy for Iron and Steel, SIMS provides various items for each registration, provided the importer, exporter, manufacturer, country of origin, and port of exportation are the same.

FAQs

Read Our Article: SIMS Registration For Steel Importers: Know Legalities