Paper Import Monitoring System (PIMS) will Come into Effect from 1st October, 2022

The Directorate General of Foreign Trade (DGFT) has implemented the Paper Import Monitoring System (PIMS) by changing the import policy of major paper products from "Free" to "Free subject to mandatory registration under PIMS." PIMS will go into effect on October 1, 2022. However, online registration will be available beginning July 15, 2022.

The PIMS will apply to 201 tariff lines of paper products imported by a Domestic Territory Area unit, including newsprint, handmade paper, coated paper, uncoated paper, Litho and offset paper, tissue paper, and toilet paper, cartons, labels, and so on. However, paper products such as currency paper, bank bond, and cheque paper, security printing paper, and so on are not required to be registered.

According to PIMS, an importer must obtain an automatic registration number through an online system by paying a registration fee of Rs. 500/- no earlier than the 75th day and no later than the 5th day before the expected arrival date of the import consignment.

The automatic registration number shall be valid for 75 days, and multiple consignments Bill of Entry (BoEs) shall be permitted in the same registration number within the registration validity period, for the permitted quantity.

Furthermore, registration under PIMS will be required at the time of import of the items covered by PIMS by a unit in a Special Economic Zone/Free Trading Warehousing Zone or by an Export Oriented Unit. However, registration under PIMS is not required by the Domestic Territory Area (DTA) Unit at the time of Customs Clearance from the SEZ/FTWZ/EOU to DTA if no processing of the item of paper has taken place at the time of entry into an SEZ/FTWZ/EOU.

The introduction of PIMS is intended to curb imports under the "Others" category Tariff Lines, dumping of paper products in the domestic market through under-invoicing, entry of prohibited goods through misdeclaration, and re-routing goods through other countries in lieu of trade agreements, based on the demand of the domestic paper industry. This category may also promote the 'Make in India' and 'Atmanirbhar' initiatives.

However, if processing has occurred in the SEZ/FTWZ/EOU with a change in HS Code at the 8-Digit level, the importer in DTA must register under PIMS if the processed item falls under any of the 201 tariff lines covered by PIMS.