The DGFT vide Policy Circular No. 45/2015-20 dated January 23, 2023 has issued a clarification on the Implementation of the Paper Import Monitoring System (“PIMS”).
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. 11/2015-20 dated May 25, 2022.
Various representations have been received in DGFT from trade & industry seeking clarification on the applicability of the said Notification dated May 25, 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 IECS 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.).
The Policy Circular can be accessed at: https://content.dgft.gov.in/Website/dgftprod/7bbd57b7-5398-4cc3-ae8b-9640911b594a/Policy%20Circular%20No-45%20-%20PIMS.pdf