Executive Summary:
This policy circular clarifies the implementation of the Paper Import Monitoring System (PIMS), addressing concerns raised by the trade industry regarding Notification No. 1/2015-20 dated 25th May, 2022. It confirms mandatory PIMS registration for most paper imports, regardless of transportation mode or purpose, while providing limited exemptions. The circular was issued on January 23, 2023.
Key Points / Main Content:
* **PIMS Applicability:**
* PIMS registration is mandatory for imports under Chapter 48, covering 201 tariff lines of Schedule-I Import Policy of ITC HS, 2022.
* Air mode imports are not exempt from PIMS registration.
* Imports under Advance Authorisation, DFIA, and ICGR schemes require PIMS registration.
* PIMS registration is required at the point of import into SEZ/FTWZ/EOU.
* **Exemptions:**
* Import consignment of samples with FOB value up to Rs. 10,000 are exempted from PIMS registration.
* Exemption from PIMS may be considered on a case-by-case basis for non-commercial imports under common IEC by individuals and Government agencies, as per Para 2.58 of the Foreign Trade Policy.
* PIMS Registration is not required at the time of Customs Clearance from SEZ to DTA if no processing has taken place of the item of paper.
* **SEZ/FTWZ/EOU Clarifications:**
* PIMS registration is required at the point of import by a Unit in SEZ/ FTWZ/ EOU.
* PIMS is not required at the time of Customs clearance from the SEZ/FTWZ/EOU to DTA if no processing has taken place.
* If any processing has been undertaken that changes the HS code, PIMS registration is required at the time of entry into SEZ/FTWZ/EOU.
Impact Analysis:
* Exporters:
* Impact: Must comply with PIMS registration requirements for paper imports, potentially increasing administrative burden and import costs.
* Action Required: Register paper imports under PIMS unless eligible for specific exemptions.
* Importers:
* Impact: PIMS registration applies to all notified paper products, potentially affecting import operations.
* Action Required: Understand and adhere to the PIMS registration process, and determine if any exemptions apply to their specific import activities.
* Units in SEZ/FTWZ/EOU:
* Impact: PIMS registration required at the point of import, but not at the point of customs clearance from SEZ to DTA if no processing has taken place.
* Action Required: Register paper imports under PIMS, unless no processing has taken place of the item of paper.
* Customs Authorities:
* Impact: Responsible for enforcing PIMS regulations and verifying compliance.
* Action Required: Implement and monitor PIMS compliance for paper imports.
* Individuals and Government Agencies:
* Impact: PIMS registration is compulsory for imports of all notified Paper products.
* Action Required: Apply for PIMS registration, unless eligibility for PIMS exemption applies, on a case-by-case basis, for non-commercial import under common IEC by individuals and Government agencies, as per Para 2.58 of the Foreign Trade Policy.
Key Entities Referenced
Paper Import Monitoring System: A system implemented by DGFT for monitoring paper imports into India.
Directorate General of Foreign Trade: The issuing authority of the policy circular, responsible for foreign trade policy in India.
Department of Commerce: A department under the Ministry of Commerce and Industry involved in consultation regarding the policy.
Department for Promotion of Industry and Internal Trade: A department consulted on the applicability of the notification.
Foreign Trade Policy: The governing policy under which exemptions from PIMS can be considered in specific cases.
Special Economic Zone: A specially delineated duty-free enclave that is deemed to be foreign territory for the purposes of trade operations, duties and tariffs.
Export Oriented Unit: An entity that exports a significant portion of its production and is subject to specific regulations.
New Delhi, Delhi: Location of Ministry of Commerce and Industry and Udyog Bhawan.
~\ Government of India
Ministry of Commerce and Industry
Department of Commerce
(Directorate General of Foreign Trade)
Vanijya Bhawan, Akbar Road, New Delhi-110011
Policy Circular No. 45/2015-20
-
To Dated: 23" January, 2023
All Regional Authorities of DGFT
All Customs Authorities
All Exporters/Members of Trade
Subject: Implementation of Paper Import Monitoring System (PIMS) Clarification reg.
Import of products under Chapter 48 (total 201 tariff lines) of Schedule-I (Import Policy)
of ITC (HS), 2022 are permitted subject to compulsory registration under Paper Import
Monitoring System (PIMS), vide DGFT Notification No. 1 1/2015-20 dated 25" May, 2022.
2. Various representations have been received in DGFT from trade & industry seeking
clarification on the applicability of the said Notification dated 25" May, 2022 in certain
situations. The matter has been examined in consultation with the Department of Commerce
(DoC) and Department for Promotion of Industry and Internal Trade (DPIIT). Accordingly, the
issues raised and responses thereto are given below:
(i) | Whether imports through Air mode are exempted from Registration from
PIMS?
Response: In Paper, there are no small volume/high value goods on which Air-Cargo is
justified. Therefore, registration under PIMS shall be mandatory regardless to mode of
transportation.
(ii) | Whether import of samples of paper is exempted from Registration from
PIMS?
Response: Import consignment of samples for FOB value of Rs. 10,000/- irrespective of
quantity, shall be exempted from requirement of compulsory registration under PIMS.
(iii) Can returnable paper items imported on temporary import be exempted from
PIMS registration and given fee waiver?
Response: Since Paper products are not small volume/high value goods, therefore,
registration under PIMS shall be compulsory regardless to the purpose of imports of paper
products.
(iv) Whether registration from PIMS is exempted for import under common IEC
by individuals and Government agencies?
Response: Registration under PIMS shall be compulsory for imports of all notified Paper
products. However, exemption from PIMS can be considered for non-commercial import
under common JECs by individuals and Govt. agencies on case to case basis, in terms of
Para 2.58 of the Foreign Trade Policy.
(v). Will PIMS be applicable to imports through Advance Authorisation, DFIA
and ICGR?
Response: PIMS shall be mandatory regardless to the purpose of the imports of paper
products under any scheme (Advance Authorization/IGCR/EOU/SEZ
etc.).
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(vi) Whether PIMS Registration is required both at the point for import into SEZ/
FTWZ and at the time of Customs Clearance from SEZ to DTA? Whether
registration is required for EOUs as well at the time of import by an EOU?
Response: PIMS\ Registration shall be required at the point of import by a Unit in
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This issues with the approval of competent authority.
(dail
220 (|2023
(Sanjay Kumar Tiwari)
Dy. Director General of Foreign Trade
(For Director General of Foreign Trade)
E-mail: sanjay.kt@nic.in
xiora gare feast /Sanjay Kr. Tiwari
Dy. Director General of Foreign Trade
(Issued from F. No. M-5975/AM04/PC.2[A/E-5984)
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