The Directorate General of Foreign Trade vide its notification dated 19th January 2022, issues 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.
Based on the request, DGFT has clarified that the 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.
Further, if the steel/steel item is exported from DTA to SEZ and then imported into DTA from SEZ without value addition or with value addition, there should be no requirement for SIMS registration.
