Govt expands scope of steel import monitoring

The government has tightened the norms for import of certain items using tools such as pre-import registration, hike in duty rates, and 100 per cent security for provisional assessment.
 

The Steel Import Monitoring System (SIMS) was introduced in November 2019 for 250 specified iron and steel items only. SIMS requires the importers to submit advance information in an online system for import of specified items and obtain an automatic registration number by paying registration fee of Rs 1 per thousand subject to minimum of Rs 500 and maximum of Rs 1 lakh on CIF value.
 

The importer can apply for registration not earlier than 60th day and not later than 15 days before the expected date of arrival of import consignment.
 

The automatic registration number thus granted is valid for a period of 75 days. The importer must enter the registration number and expiry date of registration in the bill of entry to enable Customs clearance of the consignment.
 

The scope of SIMS is now vastly expanded to cover imports of all items covered under Chapters 72, 73, and 86 of Indian Trade Classification (Harmonized System) of Import and Export items, known as ITC (HS). The items subjected to SIMS now include all items of iron and steel, all articles of iron and steel, railway or tramway locomotives, rolling-stock and parts thereof, railway or tramway track fixtures and fittings and parts thereof, mechanical (including electro-mechanical) and traffic signalling equipment of all kinds.
 

Even parts of railway or tramway locomotives or parts of rolling stock, traffic control equipment for railways, roads, and inland waterways, mechanical equipment for signalling to or controlling road, rail, other vehicles, ships or aircraft and traffic control equipment for use at ports and airports and parking facilities are now brought within the ambit of SIMS.
 

The expanded coverage will be effective for imports from October 16 onwards.
 

A new policy condition is added in Chapter 85 and 94 of ITC (HS) to enable random sampling of LED (Light Emitting Diode) products and control gear for LED products notified under ‘Electronics and Information Technology (Requirement of Compulsory Registration) Order 2012.
 

Concessional duty available on import of certain components for use in the manufacture of Liquid Crystal Display (LCD) or LED TV panels will now be subject to importers following the procedures prescribed in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. Open Cell (15.6” and above) for use in the manufacture of LCD and LED TV panel will now attract 5 per cent basic Customs duty instead of ‘nil’.
 

All importers, including the Authorised Economic Operators, are now required to furnish 100 per cent of differential duty as a security if provisional assessment is requested by the importer when inquiry is initiated in cases related to determination of origin under Free Trade Agreements (FTAs) based on the reasonable belief that the matter involves mis-declaration of origin or cases related to verification of signatures and seals under FTAs.
 

Standard Operating Procedures have been issued to enable the Gem and Jewellery Export Promotion Council endorse rectification of minor errors in the Kimberley Process Certificates (KPC) for import of rough diamonds and issue technical KPC for re-export of rough diamonds.
 

Mandatory filing of different declarations in new format in a phased manner is now prescribed under the Sea Cargo Manifest and Transhipment Regulations, 2018. Email: tncrajagopalan@gmail.com