Re-import of steel for packaging will not be covered under SIMS

Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
UdyogBhawan, H-Wing
Maulana Azad Road, New Delhi-110011
****

Policy Circular No. 38/2015-2020-DGFT

Dated 19th January, 2022

To

All Regional Authorities of DGFT
All Customs Authorities

Subsequent to the issuance of Notification No.33/2015-2020 dated 28.09.2020 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.

2. The issues were referred to M/O Steel and based upon their clarification, responses thereto are given below:

A. 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?

Response: 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.

B. 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?

Response: 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.

This issues with the approval of the competent authority.

(Jai Pal)
Deputy Director General of Foreign Trade
jai.pa184@nic.in

File No. 01/89/180/MONI-5852/AM-03/PC-2(A)/E-1663