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

calendar25 Sep, 2023
timeReading Time: 5 Minutes
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 CodeS.No.HS CodeS.No.HS Code
172044900967208529019173269080
272042190977228301119273045930
372251100987211295019373021010
472026000997219341019473182200
5721049001007219119019573259910
6722519201017203100019673045910
7722540191027226110019773259999
8720838401037225401219873043931
9720221001047208273019973239990
10720851101057228601220073121020
11721061001067214999020173043939
12721070001077217101020273072900
13720839301087219332020373041990
14720712901097205101120473041190
15720917901107228302420573079190
16722020901117222201920673063090
17722530901127224901020773262090
18720837901137208519020873181400
19721030901147212600020973090090
20720839401157225910021073062100
21720839901167208900021173021090
22721012901177222309921273084000
2372255010118722220991 21373151290
24722090901197210121021473239390
25721933901207205102121573199000
26721420901217208521021673182300
27721990901227208274021773083000
28722840001237208263021873151100
29720293001247212309021973202000
30722830291257205210022073110090
31720211001267222111922173071900
32721934901277210410022273242900
33722990901287206109022373042400
34722830191297215509022473079290
35722100901307208259022573201011
36722490911317211299022673011000
37720916901327209900022773043119
38722790401337228302222873249000
39721912001347212209022973181190
40722790901357222301923073051121
41721730101367218100023173072100
42721913001377213999023273261910
43720836901387217202023373042910
44722592001397228601123473159000
45720219001407225401123573043919
46720429901417202910023673063010
47720838301427213992023773079390
48722599001437208361023873182100
49721935901447226995223973158900
50720838901457205101924073102910
51721050001467202999024173219000
52720918901477219211224273269060
53720292001487223009224373141490
54721790991497223009924473089010
55721720101507214300024573151900
56721899101517215909024673045920
57720229001527205109024773231000
58721069001537204500024873102190
59722699301547213912024973211110
60720241001557219221925073065000
61720270001567215100025173045110
62720827901577219342025273141990
63720249001587201100025373101090
64722519901597212109025473241000
65722850901607219329025573170099
66720410001617220202925673170019
67720441001627226921025773069019
68721090901637228609425873121010
69721391901647219901325973182910
70721914001657222199926073043921
71722699901667219319026173141410
72722810901677326909926273023000
73720916201687318150026373259930
74720837401697308909026473182400
75720529901707318160026573066900
76721250901717306400026673269070
77722519101727318299026773043139
78721240001737304900026873239490
79720826901747304490026973072200
80720917201757307999027073144190
81720719201767306610027173259920
82721921901777312900027286021000
83722540131787320909027386079990
84721730201797312109027486090000
85720299321807306110027586040000
86721633001817310299027686071910
87720837301827326199027786031000
88722490991837318190027886079100
89721730301847304410027986072900
90722990321857304299028086071990
91721923901867306909028186073090
92722880901877304111028286080090
93722300911887304239028386072100
94721933101897304191028486080030
957205291019073251000  

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) 2017the importer needs to

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

What does SIMS stand for? Why was it created?

SIMS is a Steel Importing Monitoring System instituted by the Ministry of Commerce and Industry, Government of India, to provide advanced information about steel imports to the government and relevant stakeholders.

Who is required to fill out the license?

Any business importing steel products covered under the licensing program must create a license for concerned imports. Importers, importing agents, or brokers may apply for this license. Please ensure that the contact person is named.

Does the importer need a license for each shipment?

Yes, a license is required for each customs entry. You may include multiple products on one license as well.

What is the application fee for registration to SIMS?

A registration fee of INR 1 per thousand, subject to a maximum of INR 1 Lakh and a minimum of 500, on the aggregate CIF value of imports, will need to be paid electronically in the online system for each import registration.

What products are covered under the notification?

Over 524 steel tariff lines (8-digit HS Code) require registration for imports into India. A detailed list of these HS codes is available in the dropdown of the “HS Code and Description” field in the Items Details section of the application.

Where can we apply for SIMS or get the link to apply for SIMS?

Under the SIMS, look for Import Management System on the Services option and then choose Steel Import Monitoring System. After that, one can proceed for New Authorization.

How many Manufacturers and Sellers can we add under one application for SIMS?

One can only add One Seller and One Manufacturer under one SIMS license application.

What to do if I am unaware of the IS Code definition basis steel grade?

IS Code specifications are created by the BIS (Bureau of Indian Standards) for many products. If you are unaware of the IS Code definition basis steel grade, please research the BIS website for the relevant IS Codes. If you can’t find the IS code that matches your exact specification, please fill in technical information about the product being imported in the “Technical Details” field.

How exactly is the ‘Country of origin’ defined?

This is defined in line with the rules of origin definition laid out. These rules are different across various national and international laws. Please refer to the relevant rules of origin while filling this field.

What if I discover an error after submitting the license?

For all licenses that are not yet submitted (applies to situations where the fee payment has also been made), you can modify the support from the “Drafts” section on the website. No changes can be made if you have submitted the license application.

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

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