SARAL SIMS

Why in the News?

The Ministry of Steel has launched a simplified registration facility called SARAL SIMS under the Steel Import Monitoring System (SIMS). The facility became effective on November 21 and aims to ease import procedures for small consignments and export-oriented shipments.

About SARAL SIMS

• A new, streamlined system under Steel Import Monitoring System (SIMS).
• Designed to simplify registration for small-quantity steel imports.
• Supports industries using frameworks like:
  • Advance Authorization
  • Special Economic Zones (SEZs)
  • Export-Oriented Units (EOUs)
• Reduces procedural burden for importers handling low-volume or export-linked shipments.

Key Features of SARAL SIMS

1. Coverage

• Applicable to steel and iron items under:
  • Chapters 72, 73, and 86 of the Indian Trade Classification (Harmonized System), 2022.

2. Single Annual Declaration

• Importers file one annual declaration stating intended import quantity.
• They receive a SARAL SIMS number, valid for multiple consignments throughout the financial year.

3. No Repeated SIMS Number Generation

• Earlier system required a new SIMS registration for every shipment.
• SARAL SIMS eliminates this requirement entirely.

4. Annual Return Requirement

• Importers must submit an annual return by April 30, mentioning actual imports made under SARAL SIMS.

5. Two Modes of Use

a. SARAL SIMS for Small Imports

• Allows consignments up to 10 tonnes.
• Annual cap:
  • 500 tonnes for FY 2025–26
  • 1000 tonnes from FY 2026–27 onward

b. SARAL SIMS for Export Purposes

• Covers imports under:
  • Advance Authorization
  • SEZ
  • EOU
• No quantity limit for these export-linked imports.

Benefits of SARAL SIMS

• Reduces compliance burden
• Enhances ease of doing business
• Supports MSMEs importing small steel quantities
• Facilitates export-oriented manufacturing
• Improves data collection while minimizing paperwork