Steel Import Monitoring System
The global steel industry plays a pivotal role in the economies of many countries, contributing significantly to infrastructure development, manufacturing, and various other sectors. However, the imbalance in steel trade, often resulting from unfair practices like dumping, can have adverse effects on domestic producers and industries. In order to counter such challenges and ensure fair trade practices, the Indian government took a significant step by launching the Steel Import Monitoring System (SIMS) on September 16, 2019.
Inception and Key Stakeholders
The launch of SIMS was a collaborative effort involving the Hon’ble Union Minister of Commerce & Industry and Railways, Shri Piyush Goyal, Minister of State for Commerce & Industry, Shri Hardeep Singh Puri, Commerce Secretary Dr. Anup Wadhawan, and Director General of Foreign Trade (DGFT), Shri Alok Chaturvedi. Developed by the NIC-DGFT group in New Delhi, the system was formulated in consultation with the Ministry of Steel, drawing inspiration from the US Steel Import Monitoring and Analysis (SIMA) framework.
Objective and Significance
SIMS aims to promote transparency and accountability in the steel import sector by providing advance information about incoming steel shipments. This information is made accessible to the government, steel producers, and steel importers, allowing for informed decision-making and timely interventions. The system plays a crucial role in safeguarding the interests of domestic steel producers and preventing unfair trade practices that can undermine the health of the Indian steel industry.
Operational Mechanics of SIMS
At the heart of the SIMS lies its web portal, which serves as a platform for steel importers to register and provide essential details about the steel products they intend to import. The registration process is fully automated and takes place online, eliminating the need for manual intervention. Importers are required to submit their information between the 15th and 60th day before the expected arrival of the import consignment.
Upon successful registration, the system generates a unique registration number for each importer, which remains valid for a period of 75 days. This number plays a crucial role in the customs clearance process and serves as a marker of compliance with the SIMS regulations.
Role of the Steel Ministry and Effective Implementation
One of the key responsibilities of the Steel Ministry is to monitor the information provided by importers through SIMS. This monitoring function enables the government to keep a close watch on the nature and volume of incoming steel shipments, facilitating timely policy interventions if deemed necessary. The objective is to ensure that steel imports do not negatively impact the domestic steel industry.
Notification and Implementation Timeline
The SIMS was officially notified to be in effect from November 1, 2019. Under the system, importers are required to submit advance information for the import of 284 steel tariff lines, each identified by an 8-digit HS code. This information submission is subject to a prescribed registration fee. Importers are also required to include the generated registration number and its expiry date in the Bill of Entry presented to customs for the clearance of the consignment.
