SIMS Registration - Steel Import Monitoring System (SIMS) Registration

Importance of Steel Import Monitoring System (SIMS)

The importance of SIMS Registration lies in its function as a regulatory and data collection tool. It enables the Indian Government to:

Track and analyze steel imports at the micro-level

SIMS helps the government collect detailed, real-time data on every steel consignment imported into India. This includes quantity, grade, source country, and importer details. Such granular tracking ensures better oversight of import trends and patterns. It helps identify sudden surges or irregularities in steel inflow. This micro-level data aids in ensuring balanced trade practices.

Prevent import of low-grade or misdeclared steel products

By requiring advance registration, SIMS ensures that importers disclose accurate details. This discourages under-invoicing and misclassification of goods. It enables customs officials to verify the declared steel grade and specifications. Poor-quality or misdeclared steel can then be flagged or rejected at entry. This helps protect infrastructure, safety standards, and consumer interests.

Protect domestic manufacturers from dumping practices by foreign suppliers

Dumping refers to selling products in a foreign market at unfairly low prices. SIMS helps identify such patterns early through continuous import data monitoring. If imports from certain countries or companies seem suspiciously cheap or frequent, red flags are raised. This allows the government to impose anti-dumping duties or restrictions if needed. Thus, SIMS protects Indian steelmakers from unfair foreign competition.

Streamline import monitoring, thereby influencing data-driven policy decisions

With all steel import data centralized through SIMS, the government gets actionable insights. This enables formulation of precise policies based on real trends and statistics. It supports decisions related to tariffs, trade agreements, and infrastructure planning. The streamlined system reduces manual errors and delays in policy evaluation. In short, SIMS bridges trade monitoring and strategic policy-making efficiently.

Objective and Global Relevance of SIMS Registration

The following are the objectives of Global Relevance of SIMS Registration:

• One of the core objectives of the Steel Import Monitoring System (SIMS) is to prevent the misuse of the "Others" category in the Harmonized System (HS) of tariff classification. Often, importers classify steel products under this vague category to evade quality inspections or bypass specific import restrictions. SIMS mandates that detailed and accurate information about the steel product be provided in advance, discouraging such practices.
• Another significant concern addressed by SIMS is the re-routing of imports through third countries to obscure the true origin and avoid country-specific trade restrictions or duties. SIMS helps detect and discourage such circumvention. It also plays an important role in controlling under-invoicing, a common tactic used to lower the payable import duties and deceive regulatory authorities. By requiring importers to declare the correct Cost, Insurance, and Freight (CIF) value during registration, the system promotes transparency and reduces tax evasion.
• SIMS ensures that only quality-compliant and lawfully imported steel products enter the Indian market. This creates a level playing field for Indian manufacturers who follow domestic quality norms and supports fair competition. Import data collected through SIMS is published weekly on the Ministry of Steel's website, making it accessible to stakeholders and aiding in strategic trade and policy decisions.
• Globally, SIMS aligns India with best international trade practices like those followed in the US and EU. It also advances the vision of Atmanirbhar Bharat by discouraging inferior imports and encouraging self-reliance in the steel sector through responsible and regulated trade.

Benefits of SIMS Registration for Importers and Government

SIMS Registration benefits multiple stakeholders — the government, domestic manufacturers, and importers themselves.

For Government Authorities

• SIMS provides early visibility into upcoming steel imports by requiring importers to register their consignments in advance. This helps authorities anticipate volumes and prepare accordingly.
• It assists in identifying unfair trade practices like dumping and under-invoicing by analyzing trends and inconsistencies in declared data across importers and countries.
• The system generates a reliable database that supports policy formulation, enabling authorities to impose tariffs, anti-dumping duties, or restrictions based on factual evidence.
• By linking with customs systems like ICEGATE and aligning with quality control orders, SIMS enhances the enforcement of import standards and ensures only compliant goods are cleared.

For Domestic Steel Industry

• SIMS helps reduce unfair competition by curbing the entry of cheap and substandard steel products that could otherwise flood the market. By enforcing quality checks and transparency, it ensures that domestic producers are not undercut by inferior imports. This promotes healthy competition based on quality and compliance. It also discourages price wars triggered by low-grade foreign products. Ultimately, it supports the sustainability of India’s steel industry.
• The system brings clarity to import trends, allowing manufacturers and policymakers to anticipate supply volumes more accurately. This improves demand forecasting and production planning. Importers and domestic producers can make informed decisions based on reliable data. It reduces uncertainty in the market. As a result, businesses can align their operations with expected steel demand.
• By preventing the dumping of inferior steel, SIMS safeguards the interests of Indian manufacturers who invest in advanced technologies and R&D. Ensuring a fair market environment motivates industries to grow and innovate. This protection fosters long-term industrial growth. It also encourages global investors to view India as a stable manufacturing destination. Thus, SIMS indirectly supports industrial modernization and competitiveness.

For Importers

• SIMS provides a fully online and streamlined registration process through the DGFT portal, making it accessible and user-friendly. Importers can submit details from anywhere, reducing paperwork and manual errors. This digital interface saves time and enhances efficiency. It also ensures consistency in the registration process. The online system is operational 24/7, adding to its convenience.
• The system reduces compliance risks by offering automatic registration numbers and clearly defined procedures. This minimizes ambiguity and prevents errors in documentation. Importers can follow step-by-step instructions to stay compliant with the law. The structured process lowers the chances of rejection or delays. It also builds confidence among stakeholders.
• Accurate SIMS registration and document submission enable smoother and faster customs clearance. Customs officials can verify all details in advance, reducing inspection time. This leads to quick release of consignments at the port. It also prevents costly delays for importers. Overall, it contributes to seamless trade operations.
• SIMS integrates real-time notifications for policy updates and procedural changes, ensuring users are well-informed. This helps importers adjust quickly to any regulatory shifts. Transparent communication builds trust and accountability. It reduces dependency on intermediaries for regulatory news. Stakeholders can make timely and informed decisions based on official alerts.

Eligibility Criteria for SIMS Registration from DGFT

SIMS Registration is mandatory for all importers (whether individual, company, or partnership firm) intending to import iron, steel, or related products falling under specified HS codes. The basic eligibility requirements include:

1. Valid Importer Exporter Code (IEC)

Importers must hold an active IEC issued by DGFT. This is a mandatory identification number for all import/export transactions. Without IEC, registration on the SIMS portal is not possible. It ensures traceability and compliance with foreign trade laws.

2. Applicable Product Chapters: 72, 73, and 86

Only products under ITC (HS) Chapters 72, 73, and 86 are covered. These include iron and steel, articles of iron and steel, and railway components. Importers must correctly classify the HS code to proceed. This prevents misuse and ensures coverage of regulated products.

3. Registration Timing: 15 to 60 Days Window

SIMS Registration must be done at least 15 days before import arrival. It should not be applied for earlier than 60 days prior to arrival. This time frame ensures up-to-date import data for monitoring. Late or early registration beyond this window is not valid.

4. Payment of Registration Fee Based on CIF

A nominal fee is charged based on the CIF (Cost, Insurance & Freight) value. The rate is Rs. 1 per Rs. 1,000 of CIF, with a minimum of Rs. 500 and max Rs. 1 lakh. This fee must be paid online during the application process. No refund is available even if the import doesn’t happen.

5. Declaration of Complete Import Details

Importers must declare details such as HS Code, product name, quantity, CIF value, origin, and destination port. Accurate data entry is crucial for registration approval. Incomplete or incorrect information can lead to rejection. These details are also used by customs during clearance.

6. Penalty for Non-Compliance

Failure to register or submitting false data is a legal offense. The DGFT may suspend the IEC or impose monetary penalties. Actions fall under the Foreign Trade (Development & Regulation) Act, 1992. Non-compliance delays imports and damages business reputation.

Products Covered Under Steel Import Monitoring System (SIMS)

SIMS Registration is required for importing specific steel-related products listed under 284 tariff lines in the ITC (HS) Schedule 1, classified under the following chapters:

Some covered categories include:

Flat Steel Products:

• Hot-rolled and cold-rolled coils/sheets
• Galvanized and coated steel
• Electrical steel (CRGO/CRNGO)

Long Steel Products:

• Bars, rods, billets, blooms
• Structural steel and alloy steel

Pipes & Tubes:

• Seamless and welded tubes
• Hollow sections, stainless steel pipes

Stainless Steel Products:

• Kitchenware, utensils, wire, and other articles

These products are subject to quality and import surveillance due to their critical use in infrastructure, construction, manufacturing, and railway development. SIMS helps avoid the influx of counterfeit or substandard materials and enhances traceability.

Requirements for Online SIMS Registration

To ensure successful SIMS Registration, importers must fulfill the following key requirements:

• DGFT Login Credentials: Registration must be done using valid IEC login credentials on the SIMS portal.
• Accurate HS Code: Choose the correct HS code of the product as per ITC (HS) Schedule.
• Import Consignment Details: Must include:
• Product name and specification
• Country of origin and dispatch
• Port of entry
• Expected arrival date
• Quantity and CIF value
• Digital Mode of Payment: Payment of registration fee via online gateway (credit/debit card, net banking, UPI).

The registration must be applied no later than 15 days before expected arrival and not earlier than 60 days before it. The registration is valid for 75 days and can be used for multiple consignments from the same origin, within validity.

In case of a change in product or country of origin, a new registration must be obtained.

Documents Required for SIMS Registration

Importers must prepare the following mandatory documents for SIMS Registration from DGFT:

Basic Documents:

• Importer Exporter Code (IEC)
• GST Registration Certificate
• Company PAN Card
• Incorporation Certificate or Business Registration
• Authorization Letter (if filing through an agent)

Import-Specific Documents:

• Commercial Invoice or Proforma Invoice
• Packing List
• Bill of Lading or Airway Bill
• Product Specifications or Test Reports (Mill Test Certificate if available)
• Country of Origin Certificate (if applicable)
• End-use Declaration Letter

All documents should be uploaded in digital format and details should match those provided on the SIMS form. Discrepancies in data may lead to registration rejection or customs clearance delays. Hence, document verification by experts is advisable before final submission.

Procedure for SIMS Registration

Here's a simplified step-by-step process for Online SIMS Registration:

Step 1: Portal Registration

Begin by visiting the official SIMS Portal. Log in or register using your Importer Exporter Code (IEC) along with a valid mobile number and email ID. You will receive a One-Time Password (OTP) on your registered contact details for verification. This process creates a user profile and gives you access to initiate new registration applications. Ensure your IEC details are up-to-date in the DGFT database before starting.

Step 2: Submit Import Details

Fill in all the required information about the import consignment. This includes HS code, quantity, CIF (Cost, Insurance & Freight) value, manufacturer's name and country, port of discharge, and expected arrival date. Provide accurate product descriptions and match the HS codes precisely as per ITC (HS) Schedule. Any incorrect data can lead to rejection or delay in customs clearance. You can save your draft before final submission if details are incomplete.

Step 3: Pay Registration Fee

After submitting the form, proceed to pay the registration fee online. The fee is ?1 per ?1,000 of CIF value, with a minimum of ?500 and maximum of ?1,00,000. You can make the payment through net banking, UPI, debit/credit cards, or other available online modes. Ensure payment confirmation is received and saved for your records. This step is important to generate the ARN (Automatic Registration Number).

Step 4: Receive ARN (Automatic Registration Number)

Once the payment is successful, the system will generate an ARN. This ARN is a unique number that is valid for 75 days from the date of issuance. It serves as proof of successful SIMS Registration and is mandatory for customs clearance. You can use a single ARN for multiple consignments of the same product and country of origin within the validity period. Keep this number safe and accessible for customs documentation.

Step 5: Customs Clearance

During import clearance, submit the ARN while filing the Bill of Entry (BOE) with Customs. Additionally, update the BOE number on the SIMS portal within 15 days of ARN issuance. This ensures synchronization between DGFT and customs databases for tracking. Failure to update the BOE may result in compliance issues or delayed clearance. Always verify the ARN and BOE linkage for smooth processing at the port of entry.

Validity, Renewal, Modification & Cancellation of SIMS Registration

The following are the Validity, Renewal, Modification & Cancellation:

Validity

Each SIMS ARN (Automatic Registration Number) remains valid for 75 calendar days from its date of generation. During this validity period, the same ARN can be used for multiple consignments, provided the product and source country remain the same. This helps importers consolidate shipments and avoid repetitive registrations. Once the 75-day period lapses, the ARN becomes invalid. Importers must track expiration dates to ensure timely clearance.

Renewal

There is no provision to renew an existing SIMS registration. Once an ARN expires, it cannot be extended under any circumstances. Importers must submit a fresh application for each new import or expired ARN. Every application undergoes a new registration and fee payment. Hence, it's important to plan import timelines within the ARN validity.

Modification

After submitting the application, no modifications are allowed in any field. This includes changes to HS Code, product name, quantity, country of origin, or port. If any correction is needed, the importer must file a new application from scratch. Incorrect or outdated information may lead to rejection at customs. Always double-check details before final submission.

Cancellation

Only applications saved as drafts can be deleted or cancelled. Once the application is submitted and the ARN is generated, it cannot be cancelled. The registration fee is non-refundable, even if the shipment is delayed or cancelled. Importers should be confident about their shipment plan before submitting. Deleting a draft carries no financial penalty or compliance issue.