Paper Import Monitoring System- All You Need to Know
The Directorate General of Foreign Trade (DGFT) has implemented the Paper Import Monitoring System (PIMS) by modifying the import policy of key paper items from ‘Free’ to ‘Free subject to compulsory registration under PIMS’. However, the online registration service will commence on July 15, 2022.
PIMS aims to gather specific import details of Paper and Paper products as per Chapter 48 of ITC (HS), 2017, Schedule-1. This system will gather comprehensive data on imports of these items, facilitating trade data analysis and policy development. Access to real-time information will enable effective monitoring and informed decision-making.
Paper Import Monitoring System (PIMS)
The DGFT has announced this Paper Import Monitoring System with an aim to get all the necessary details about the import of paper and products made of paper, as per Chapter 48 of ITC (HS), 2017, Schedule-1.
This system aims to collect information on imports of these commodities, facilitating trade data analysis and policy development.
Importance of Paper Import Monitoring System
Responding to the demands of the domestic paper industry, the implementation of PIMS aims to address several issues including:
- Curbing imports categorised under the “Others” Tariff Lines.
- Preventing paper product dumping in the domestic market through under-invoicing.
- Addressing the entry of prohibited goods through misdeclaration.
- Preventing re-routing of goods through other countries to circumvent trade agreements.
- Potentially supporting initiatives like ‘Make in India’ and ‘Atmanirbhar’ in this sector.
Significant Features of PIMS
PIMS provides the functionality to view previous online registrations. Additionally, incomplete applications on the DGFT portal are accessible in PIMS for review and further action.
Any changes to the applicant’s contact information must be updated in the DGFT IEC database via the online modification system.
Importers failing to register their information on notified items in advance, or providing incorrect data in the online PIMS module, may face punitive action under The Foreign Trade (Development and Regulation) [FTDR] Act, 1992.
Online PIMS is available 24/7, but it’s advisable to file registrations well in advance to avoid disruptions in business activities.
Import Policy of Paper Products
The DGFT Notification No. 11/2015-20, dated 25.05.2022 mentions that the import policy of paper and paper products under the 201 tariff lines is amended from ‘Free’ to ‘Free subject to compulsory registration under the Paper Import Monitoring System (PIMS).
PIMS Applicability
The Paper Import Monitoring System (PIMS) applies to imports by Domestic Territory Area units encompassing a diverse range of paper products under 201 tariff lines, including but not limited to:
- Handmade paper
- Newsprint
- Litho and offset paper
- Coated paper
- Toilet paper
- Uncoated paper
- Cartons
- Tissue paper
- Labels, etc
Excluded Items
Certain paper products like bank bonds, currency paper, security printing paper, Cheque paper, etc., are exempt from mandatory registration under PIMS.
Processes Under Paper Import Monitoring System (PIMS)
Under the Paper Import Monitoring System (PIMS), importers are mandated to provide advance information through an online platform for the importation of goods.
Additionally, registration under PIMS is obligatory for units located in Special Economic Zones (SEZs)/Free Trading Warehousing Zones (FTWZs) or for Import Oriented Units (IOUs) upon importation of items covered by PIMS.
However, DTA units are exempt from PIMS registration during Customs Clearance from SEZs/FTWZs/EOUs to DTA if the paper item registered under PIMS has undergone no processing since its entry into an SEZ/FTWZ/EOU.
PIMS Registration Number
According to PIMS guidelines, importers must acquire an automatic registration number via an online system by paying a fee of Rs. 500/-.
The importer can apply for registration after 75 days of the expected arrival of the import consignment. Furthermore, registration cannot be applied after the 5th day of the anticipated arrival of the consignment.
- Multiple Bill of Entries are permissible under the one registration number during the validity period for the approved quantity.
- The importer must include the Registration Number and expiry date of Registration in the Bill of Entry to facilitate Customs clearance of the shipment.
PIMS Registration Number Validity
The Paper Import Monitoring System registration number remains valid for 75 days, during which multiple consignments’ Bill of Entries (BoEs) are allowed under the same registration number for the allowed quantity.
Procedure to Get PIMS Registration Number
The process to obtain a PIMS registration number is as follows:
- Visit the DPIIT Paper Import Monitoring System website.
- Select Paper for the import category
- The link will redirect to a new page where exporters can log in to the portal using the IEC.
- Follow the prompts and instructions provided on the portal to complete the registration process.
- Upon successful completion, the system will generate a PIMS registration number, which will be required for further import procedures.
- Ensure to note down the registration number for future reference and use.
- Proceed with any additional requirements or steps as outlined by the system or relevant authorities.
By following these steps, importers can obtain their PIMS registration number efficiently and adhere to the necessary regulations.
To Sum Up
In conclusion, the implementation of the Paper Import Monitoring System (PIMS) marks a significant milestone in the regulation of paper imports, aimed at enhancing transparency, accountability, and efficiency in the industry.
By requiring advance information and registration for paper imports, PIMS ensures better monitoring and control, thereby curbing malpractices such as under-invoicing and misdeclaration.
Furthermore, with its focus on supporting domestic industries and initiatives like ‘Make in India’, PIMS sets the stage for a more sustainable and self-reliant paper sector. As we move forward, it is imperative for importers and stakeholders to adapt to the new system, embracing its benefits and contributing to a more robust and resilient paper trade environment.
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