UPDATE: Director General Of Foreign Trade Issues Clarification On CHIMS Registration

The Ministry of Commerce & Industry through the Director General of Foreign Trade (“D.G. of Foreign Trade”), has vide its Policy Circular bearing No. 492015-2020 dated 27^th June 2022 issued clarifications to its amendment in import policy dated 10^th Maty 2021.

BACKGROUND:

On 10^th May 2021 the Ministry of Commerce & Industry through the D.G. of Foreign Trade notified an amendment to the import policy of integrated circuits under chapter 85 of I TC (HS), 2017, Schedule – I (Import Policy). As per the amendment, for import of integrated circuits and related products falling in the following HS Code category the importers will have to submit advance information in an online system The Chip Imports Monitoring System (CHIMS):

1. 85423100
2. 85423200
3. 85423300
4. 85423900
5. 85429000

A new Policy Condition No. 6 was added in Chapter-85 of ITC (HS), 2017, Schedule-I (Import Policy) which reads as under:

1. The Chip Imports Monitoring System (CHIMS) shall require importers to submit advance information in an online system for import of items and obtain an automatic Registration Number by paying registration fee of Rs. 1 per thousand subject to minimum of Rs. 100/ and maximum of Rs. Rs 500 on CIF value.
2. The importer can apply for registration not earlier than 60^th day before the expected date of arrival of import consignment and can apply till the date of arrival of the import consignment . The Automatic Registration Number shall remain valid for a period of 75 days. Importer shall have to enter the Registration Number and expiry date of Registration in the Bill of Entry to enable Customs for clearance of consignment.

CHIMS mandated the importers to submit advance information in the online system for import of items mentioned above and obtain an automatic Registration Number by paying a registration fee of Rs. 1 per thousand subject to a minimum of Rs. 100/ and maximum of Rs 500 on CIF (cost insurance freight) value.

CLARIFICATION:

Pursuant to the aforesaid amendment, stakeholders of the I.T Sector faced various issues such as whether multiple products can be imported with one registration and whether CHIMS registration is applicable to air/ sea imports.

By a Policy Circular No. 492015-2020 dated 27^th June 2022, the office of the D.G. of Foreign Trade has clarified that:

1. Importers may include multiple products in one registration number. However, in each shipment a separate registration number is required;
2. CHIMS registration is applicable to air/ sea shipments and such registration can be made on the day of arrival of import.
3. The Director General of Foreign Trade has confirmed that microprocessors covered under ITC (HS) code 84733010 and memory modules under ITC (HS) code 84733099 are excluded from CHIMS.

This clarification can help avoid multiple registrations of products in one shipment. The bill of entry shall mention the registration number and expiry date of the registration number of each shipment and the importers can register multiple products belonging to one shipment in one registration number.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.