DGFT vide Notification No. 17/2015-20 dated September 5, 2019 amended the import policy of Iron & Steel by revising it from ‘Free’ to ‘Free’ subject to compulsory registration under the Steel Import Monitoring System (“SIMS”) for specified items.
Issue: The Directorate has received a query that whether SIMS Registration is required both at the point for import into Special Economic Zone (“SEZ”)/ Free Trade and Warehousing Zones (“FTWZ”) and at the time of Customs Clearance from SEZ to Domestic Tariff Area (“DTA”).
Clarification: DGFT vide Policy Circular No. 30/2015-2020 dated January 8, 2020 clarified that in case an item of steel gets registered under SIMS at the time of entry into SEZ/FTWZ, there is no need to seek SIMS Registration again at the time of supply of such item into DTA. In other words, if the goods are imported under SIMS to SEZ/FTWZ are supplied to DTA unit without any processing, the DTA unit without any processing, the DTA unit need not seek any registration under SIMS. However, if manufacturing process in SEZ results in change of HS Code at 8-digit level, the importer in DTA shall be required to register under SIMS.
Read more at: http://dgft.gov.in/sites/default/files/Circular%20No30.pdf