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All you need to know about Services under Import Management System

Through the Services under Import Management System, DGFT notifies members about various restrictions and conditions on imports. In this blog, learn more about its objectives and products covered.

The Government of India launched the Services Under Import Authorization Scheme on November 1, 2019 to implement a licensing scheme that allows maintenance of a statistical database tracking all steel, iron, coal, aluminum, and chip imports into the country.

What is the Services under Import Management System?

Under the FTDR Act (Foreign Trade Development and Regulation Act), Directorate General of Foreign Trade (DGFT) notified the requirement of licence or registration, ahead of the import, which has been launched as Services Under Import Management System. The modules include Import Authorization for Restricted Import, Tariff Rates Quota (TRQ), Registration Certificates for Imports, Steel Import Monitoring System (SIMS), Coal Import Monitoring System, Copper and Aluminium Import Monitoring System, and Chip Import Monitoring System¹.

Objective of Services under Import Management System

The objective is to allow the government to have an updated database with information on imports into the country. This information allows the government to develop and implement effective import policies. Manufacturers, exporters, and importers receive information on various regulations imposed on imports.

Products covered under SIMS

Some of the products covered under Services under Import Management System are²:
1. Steel: Under Steel Import Monitoring System (SIMS), a policy has been adopted for specific iron and steel items appearing in chapter 72, 73, and 86 of ITC (HS) codes.
2. Coal: The Coal Import Monitoring System allows applications for registration for import of coal.
3. Copper and aluminum: Copper and Aluminium Import Monitoring System allows submission of applications related to import of aluminum and copper.
4. Chips: Registration applications related to import of chips are submitted under Chips Import Monitoring System.

Who is eligible for SIMS registration?

Any business or a party like importer, exporter or an agent involved in import and export of steel goods covered by the licensing program is required to obtain a license.

How to register for SIMS under DGFT?

Before applying for a license, it is important to obtain an Import Export Code (IEC). Below are the steps to apply for a license3:
Step 1: Select Steel Import Monitoring System under Services under Import Management System on the DGFT website.
Step 2: Apply for ‘New Authorization’ after logging in or registering on the website.
Step 3: Fill in the necessary details.
Step 4: Make the required payment.
Step 5: Click on the ‘Final Submit’ button.

The license will be created, and a unique registration number (URN) will be generated.

What is the timeline to apply?

The Directorate General of Foreign Trade (DGFT) has amended the registration period of the Steel Import Monitoring System in a notification dated July 7, 2022. According to the new rules, an importer may apply for SIMS registration DGFT no earlier than 60 days before the projected date of arrival of the import consignment.

Through schemes and systems like SIMS, the government is taking several steps to accelerate exports from India. Many documents and licenses have now been made paperless, making it simpler for businesses to export from India. With e-commerce exports, reaching international customers and taking Made in India products to the world have become easier.

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Frequently Asked Questions

What is the validity of the registration number granted under SIMS?

The automated registration number will be valid for 75 days.

Is SIMS registration required for air shipment?

SIMS registration will not be applicable for air-freighted goods, as confirmed by policy circular no. 29/2015-20 published by the DGFT on October 4, 2019⁶.

Who issues the SIMS registration number?

SIMS registration numbers are issued by the Director General of Foreign Trade (DGFT) of the Ministry of Commerce and Industry, Government of India.

Published on November 30, 2022.

Sources:
1. https://content.dgft.gov.in/Website/notification%20No.%2017%20dated%2005.09.2019%20in%20english.pdf
2. https://www.dgft.gov.in/CP/?opt=import-export-authorisation
3. https://content.dgft.gov.in/Website/DGFT%20-%20SIMS%20User%20Manual.pdf
4. https://content.dgft.gov.in/Website/DGFT%20FAQs%20-%20Steel%20Import%20Management%20System%20(SIMS)%20v2.0.pdf
5. https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2019/Circular-No-38-2019.pdf
6. https://content.dgft.gov.in/Website/Policy%20Circular-29.pdf

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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.