Clarification regarding SIMS. - DGFT - Policy Circular No. 38/2015-2020

Government of India Ministry of Commerce Industry Department of Commerce Directorate General of Foreign Trade Udyog Bhawan, H-Wing Maulana Azad Road, New Delhi-110011 Policy Circular No. 38/2015-2020 Dated 19 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 [email protected] File No. 01/89/180/MONI-5852/AM-03/PC-2(A)/E-1663