Steel Import Management System (SIMS)

[YAGAY andSUN]

The Steel Import Management System (SIMS), is part of a legal framework introduced by the Directorate General of Foreign Trade (DGFT), is an online platform designed to manage the import of steel and steel products into India. The system aims to regulate and streamline the import of certain steel products to ensure the proper monitoring, control, and enforcement of policies regarding their importation.

This system is designed to manage imports in a way that protects domestic steel producers, ensures the quality of imported steel, and aligns with India’s trade and economic policies.

Actual User, importers, importing agents, Trader/brokers and Advance authorization user (for 100% Export purpose) can register on the SIMS portal. Any business importing steel products covered under the registration program is required to create an application for concerned imports.

1. Legal Framework

The legal framework surrounding the Steel Import Management System (SIMS) is governed by the following key regulations and Acts:

• Foreign Trade (Development and Regulation) Act, 1992: This is the primary legislation under which the DGFT operates. It provides the legal backing for regulating imports and exports, including the issuance of import licenses and restrictions.
• Import Policy: Steel products are governed by India’s Import Policy, which may include specific restrictions, quantitative ceilings, or licensing requirements under the Foreign Trade Policy (FTP). This includes the mandatory registration and compliance for imports under SIMS.
• Customs Act, 1962: The Customs Act regulates the clearance of goods at Indian ports, including the implementation of restrictions and monitoring imports, including steel products under SIMS.
• Steel Import Regulations: The DGFT periodically issues notifications to amend and update the list of steel products subject to regulation under SIMS.

2. Notification/Circulars/Trade Notice: The DGFT regularly issues notifications to specify which steel products are subject to import restrictions or require import registration. The main notifications and updates related to SIMS are:

Sr. No.	Type	Number	Date	Year	Title
1	Trade Notice	10/2024-25	25-07-2024	2024-25	Launch of Steel Import Monitoring System (SIMS) 2.0 -reg.
2	Notification	28/2023-24	28-08-2023	2023-24	Amendment in Registration Fees under Steel Import Monitoring System (SIMS) reg.
3	Notification	19/2015-20	07-07-2022	2022-23	Amendment in registration time period of Steel Import Monitoring System (SIMS).
4	Policy Circular	38/2015-20	19-01-2022	2021-22	Clarification regarding SIMS.
5	Notification	33/2015-20	28-09-2020	2020-21	Insertion of Policy Condition regarding import under all HS codes in Chapter 72, 73 and 86 of ITC (HS), 2017 to require compulsory registration under Steel Import Monitoring System (SIMS)
6	Public Notice	19/2015-20	28-09-2020	2020-21	Date of implementation of Steel Import Monitoring System (SIMS) Registration for additional HS codes covered under SIMS Registration vide Notification No.33/2015-20
7	Policy Circular	30/2015-20	08-01-2020	2019-20	Clarification on SIMS Registration for SEZ/DTA
8	Notification	17/2015-20	05.09.2019	2019-20	Amendment in import policy of Iron & Steel and incorporation of policy condition in Chapter 72, 73 and 86 of ITC (HS), 2017, Schedule-I (Import Policy).

3. Time Limits

The application must be filled out prior to submitting the Bill of entry with customs. It should be filled out between 2 hrs. to 60 days before the expected arrival of imports into India.

4. Fees:  Initially, application fee of INR 500/- on aggregate CIF value of imports will need to be paid through electronic mode in the online system for each import registration. There are certain fees associated with SIMS registration and the import process:

Key Features of the Steel Import Management System (SIMS):

1. Objective of SIMS:
   • The main objective of the system is to maintain a balance in the steel sector, protecting domestic producers, controlling over-imports, and ensuring the import of quality products in compliance with Indian standards.
   • It also helps in monitoring the import trends, ensuring that imports of steel and steel products align with India’s policy objectives and the specific regulations under the Foreign Trade (Development and Regulation) Act.
2. Regulated Categories: There are over 542 steel tariff lines (8-digit HS Code) that require registration for imports into India. A detailed list of these HS codes is available in the dropdown of the “HS Code and Description” field in the Items Details section of the application.

• Under SIMS, imports of certain categories of steel products, as identified by the Ministry of Commerce and Industry, are subject to specific licensing or registration requirements.
• These products may include hot-rolled coils, cold-rolled coils, stainless steel products, alloy steel products, and others that are deemed sensitive or critical to the domestic steel industry.

3. Online Importer Registration:
   • Importers need to register online through the DGFT website or the SIMS portal to get an importer registration certificate (IRC) for eligible steel products.
   • Once registered, importers can track and manage their imports through the system, ensuring they comply with relevant import regulations.
4. Import Authorization:
   • In order to import certain steel products, importers need to apply for import authorization through the SIMS portal.
   • The DGFT provides authorization or restricts imports based on parameters such as quantity, product type, and the country of origin.
5. Documentation Requirements: For every steel import transaction, importers must provide the required documentation, including:
   • • Bill of Entry or other import-related documents.
     • Import Registration and Authorization granted through SIMS.
     • Any compliance certificates related to the quality and standards of the steel products, such as ISI certification, depending on the product category.
6. Monitoring and Compliance:
   • The DGFT and Indian Customs use SIMS to monitor steel imports closely and ensure that importers comply with the regulations.
   • Customs authorities may inspect shipments for conformity with the import authorization, quality standards, and quantities declared in the registration.
   • Non-compliance may lead to penalties or restrictions on future imports.
7. Data Analytics and Import Monitoring:
   • The system provides the government with real-time data on steel imports, enabling them to assess trends, demand patterns, and potential imbalances in the domestic market.
   • This data is used to make decisions on policy amendments, including changes in duties or imposition of quantitative restrictions.

How to Register and Use the Steel Import Management System (SIMS):

1. Visit the DGFT Portal:
   • Go to the official DGFT website or the SIMS portal (https://www.dgft.gov.in).
2. Create an Account:
   • If you are a new user, you need to create an account using your Importer Exporter Code (IEC), which is mandatory for registering and importing goods under the DGFT’s jurisdiction.
3. Apply for Registration:
   • After logging in, apply for an Import Registration for the specific steel products you wish to import. You’ll need to provide product details, such as HS Code, quantity, origin country, and other relevant data.
4. Obtain Import Authorization:
   • Once the registration is processed and verified, you will receive import authorization that allows you to import specific steel products under the given parameters.
   • Keep this authorization handy when filing for customs clearance.
5. Import Monitoring:
   • Importers can track their import authorization status and monitor their imports through the DGFT portal, ensuring that all shipments meet regulatory requirements.
6. Stepwise Procedure to apply SIMS Authorization

1. Importers needs to register on DGFT Website by login on https://www.dgft.gov.in/
2. Link the existing IEC (For more details please see IEC section FAQ’s) ·
3. Register the DSC under My Dashboards >View and Register Digital Signatures Token.
4. Then they can apply for SIMS under Services > Import Management System > Steel Import Monitoring System (Click on Explore) > Apply for New Authorization
5. Please follow the below path to get the license/STL Number (registration number) for SIMS: -

• My Dashboard>Submitted Applications
• Enter Type of Scheme (Select in dropdown: Import Management System) and
• Type of Sub Scheme (Apply for SIMS)
• Click on Search
• Click on Action (Under the Results)>View Approved Licenses>View Letter & STL number.
• View Report: https://sims.steel.gov.in/Report.aspx
• Link to User manual to SIMS: https://sims.steel.gov.in/assets/usermanual.pdf

Compliance and Penalties:

• Penalties for Non-compliance: If importers violate any rules or fail to provide the necessary documentation or comply with the import authorization conditions, penalties could be imposed. This includes fines, cancellation of registration, or restrictions on future imports.
• Monitoring of Quantities and Quality: Ensure that you do not exceed the allowed quantities of goods and that the products meet the Indian quality standards. Non-conformity can result in delayed clearance or rejection of goods at customs.

Benefits of the Steel Import Management System (SIMS):

• Better Market Control: The system helps the Indian government better control the import of steel products, protecting domestic manufacturers from unfair competition.
• Transparency: Importers can easily track their application status, registrations, and authorizations through the portal.
• Regulatory Compliance: Helps in ensuring that imported steel products comply with Indian regulations, such as quality standards, safety, and environmental guidelines.
• Streamlined Process: Simplifies the process for legitimate importers to manage their shipments, reducing delays and enhancing the efficiency of the overall import process.

Conclusion:

• The Steel Import Management System (SIMS) is an essential tool for ensuring that the import of steel products into India remains well-regulated and in line with national interests. It provides the Government with better control over steel imports while ensuring that the industry remains protected from undue external competition.
• If you're an importer of steel products, you’ll need to register on the DGFT portal, obtain authorization for each shipment, and ensure compliance with all relevant import policies.

(The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances).