DGFT issues clarification on Steel Import Monitoring System

The Director General of Foreign Trade (DGFT) has issued the  clarification on the Steel Import Monitoring System.

“Subsequent to the issuance of Notification No.33/2015-2020 dated September 28, 2020 amending import policy of all HSN Codes under chapter-72, 73 and 86 of Schedule-I (Import Policy) of ITC (HS) from ‘Free’ to ‘Free subject to compulsory registration under Steel Import Monitoring System (SIMS), DGFT has received various representations from members of Trade & Industry seeking clarification on SIMS,” the DGFT said.

The issues were referred to M/O Steel and based upon their clarification, responses thereto are given below Whether re-import of goods for packaging purposes falling under HS codes of Chapters 72,73 and 86 of ITC (HS), 2017 is also covered under scope of SIMS and Whether SIMS Registration is required if the steel/steel item is exported from DTA to SEZ and then imported from SEZ to DTA when [i] the item is being imported to DTA without any value addition and [ii] the item is being imported to DTA after some value addition

The DGFT responded that re-import of steel for packaging purposes will not be covered under SIMS as it is not primarily meant for value addition, rather being re-imported for packaging only.

“In both the cases i.e. [i] if the steel/steel item is exported from DTA to SEZ and then imported into DTA from SEZ without value addition, or [ii] with value addition, there should be no requirement for SIMS registration,” the DGFT added.

Click Here To Read Original Notification

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