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HomeHSNChapter 72HSN 7204 21 90

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Stainless steel ferrous scrap and waste, other

SIMS CLEARANCE

HSN 7204 21 90 (stainless steel ferrous scrap, other) is subject to compulsory registration under the Steel Import Monitoring System (SIMS) administered by the Directorate General of Foreign Trade (DGFT) under DGFT Notification 33/2015-20, and import is restricted to specified ports and locations under para 2.54 of the Handbook of Procedures. A Pre-Shipment Inspection Certificate (PSIC) from a DGFT-recognised Pre-Shipment Inspection Agency is mandatory for both shredded and non-shredded scrap unless imported from safe countries through specified ports, and compliance with Rules 11, 12 and 13 of the Hazardous Waste (Management and Transboundary Movement) Rules, 2016 applies as a concurrent overlay.

What this is
HSN code
7204 21 90
Chapter
72 · Iron and steel
Primary regulator
SIMS · DGFT Notification 33/2015-20; ITC (HS) Restricted import policy, Chapter 72
Customs documentation
  • SIMS registration number from DGFT
  • Pre-Shipment Inspection Certificate from DGFT-recognised PSIA
  • Hazardous waste forms from CBIC
Applicable Partner Government Agencies
SIMSSIMS·Steel Import Monitoring System

Procedural directions for customs clearance are issued by: Directorate General of Foreign Trade, Central Board of Indirect Taxes and Customs.

Compliance steps
  1. 1
    Register under SIMS by filing advance information on the DGFT online portal and paying the ₹500 registration fee. Apply no earlier than 60 days before the expected date of arrival; the automatic SIMS registration number is valid for 75 days from grant. Re-imports for packaging and DTA-to-SEZ transactions without value addition are exempt from SIMS registration.
    DGFT Notification 33/2015-20 dated 28-09-2020; DGFT Notification 28/2023 dated 28-08-2023; DGFT Policy Circular 38/2015-20 dated 19-01-2022; ITC (HS) Chapter 72, Policy Condition 5
  2. 2
    Obtain a PSIC generated online through the DGFT website (mandatory from 1 July 2022) from a DGFT-recognised Pre-Shipment Inspection Agency and upload it in e-Sanchit under document code 856001 before out-of-charge. PSICs not generated through the DGFT online system on or after 1 July 2022 are not accepted by Indian Customs. If the PSIC records a place of inspection in the UAE and the UAE has banned export of the item, the PSIC is treated as invalid and the import may be treated as a mis-declaration.
    DGFT Trade Notice 03/2022-23 dated 26-04-2022; DGFT O.M. F.No.01/53/8/E/AM24/PSIC/ImportCell/918 dated 13-06-2023; CBIC O.M. 450/148/2009-CUS-IV dated 09-06-2023
  3. 3
    Confirm compliance with para 8(b) of the General Notes to the ITC (HS) Import Policy and with Rules 11, 12 and 13 of the Hazardous Waste (Management and Transboundary Movement) Rules, 2016, including submission of valid Forms 2, 6, 7 and 9 and verification against Schedules III, VI and VIII of those Rules. Route the consignment only through specified ports and locations under para 2.54 of the Handbook of Procedures; PSIC is not required for imports from safe countries or regions through specified ports.
    Hazardous Waste (Management and Transboundary Movement) Rules, 2016, Rules 11-13 and Schedules III, VI, VIII; DGFT Public Notice 64/2015-20 dated 19-02-2020; DGFT Public Notice 46/2015-20 dated 14-01-2022; para 2.54 of HBP
A word of counsel

The most common error on this tariff line is generating the PSIC outside the DGFT online portal — particularly for consignments where the pre-shipment inspection predates the importer's awareness of the 1 July 2022 online-generation mandate. A PSIC issued on paper or through an offline process after that date is treated as invalid by Indian Customs, resulting in consignment detention at the designated port until a compliant PSIC is obtained; there is no provision for retrospective rectification. Additionally, where the exporting country is the UAE, verify that no UAE export ban applies to the specific scrap category: a PSIC showing UAE as the place of inspection for a banned category may be treated as a mis-declaration by the PSIA, attracting separate enforcement.

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Frequently asked
Does HSN 7204 21 90 require BIS certification?
No, stainless steel ferrous scrap under this tariff line is not within any BIS Quality Control Order regime. Import is governed by compulsory SIMS registration under DGFT Notification 33/2015-20 and the ITC (HS) Restricted-import policy for Chapter 72, with a mandatory PSIC and Hazardous Waste Rules overlay.
What is the validity of the SIMS registration number, and when can the application be filed?
The SIMS automatic registration number is valid for 75 days from the date of grant; applications may be filed no earlier than 60 days before the expected date of arrival of the consignment, per DGFT Notification 28/2023 dated 28-08-2023.
Are there any categories of steel imports that are exempt from SIMS registration under this tariff line?
Yes — re-imports of steel goods for packaging purposes only and transfers between DTA and SEZ (whether with or without value addition) are exempt from SIMS registration per DGFT Policy Circular 38/2015-20 dated 19-01-2022; however, PSIC and Hazardous Waste Rules compliance obligations remain unaffected by these exemptions.
Last verified against gazette notifications: 2026-05-16. Source: SIMS / DGFT / CBIC / Indian Customs CUSDATA.
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