DGFT Clarification on SIMS Registration for SEZ/DTA

The Directorate General of Foreign Trade (DGFT) issues Clarification on SIMS Registration for SEZ/DTA.

Subsequent to the issuance of Notification No.33/2015-2020 dated 28.09.2020 amending import policy of all all HSN Codes under chapter-72, 73 and 86 of Schedule-I (Import  Policy) of ITC of (HS) from ‘Free’ subject to compulsory registration under Steel Import Monitoring System (SIMS), DGFT has received various representations  from members of Trade & Industry seeking clarification 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 of 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.

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