Turnings, shavings, chips, milling waste, saw dust, fillings, trimmings and stampings, whether or not in bundles

Ferrous scrap turnings, shavings, chips, milling waste, stampings

SIMS CLEARANCE

HSN 7204 41 00 (ferrous scrap turnings, shavings, chips, milling waste and stampings) is subject to compulsory advance registration under the Steel Import Monitoring System (SIMS) administered by the Directorate General of Foreign Trade (DGFT) under Policy Condition 5 of Chapter 72, and clearance is permitted only at specified ports with a mandatory Pre-Shipment Inspection Certificate (PSIC). Hazardous Waste (Management and Transboundary Movement) Rules, 2016 compliance applies as a concurrent environmental overlay administered by the Central Board of Indirect Taxes and Customs (CBIC).

What this is

HSN code

7204 41 00

Chapter

72 · Iron and steel

Primary regulator

SIMS · DGFT Policy Condition 5 of Chapter 72; ITC (HS) Restricted import policy

Customs documentation

PSIC from accredited PSIA
SIMS registration number from DGFT
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
Register the import consignment on the DGFT SIMS online portal and obtain an automatic registration number by paying the ₹500 registration fee. Apply no earlier than the 60th day before the expected date of arrival; the registration number is valid for 75 days from grant.
DGFT Notification 28/2023 dated 28-08-2023 · DGFT Notification 19/15-20 dated 07-07-2022 · Policy Condition 5 of Chapter 72 · DGFT Notification 33/15-20 dated 28-09-2020
2
Obtain a Pre-Shipment Inspection Certificate (PSIC) generated mandatorily online through the DGFT website from a recognised Pre-Shipment Inspection Agency (PSIA), and upload it in e-Sanchit under document code 856001 before filing the bill of entry. PSICs dated on or after 1 July 2022 not generated via the DGFT online system are treated as invalid by Indian customs.
DGFT Trade Notice 03/22-23 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
Route the consignment through a specified port or location listed under Para 2.54 of the Handbook of Procedures, and verify compliance with Rules 11, 12 and 13 of the Hazardous Waste (Management and Transboundary Movement) Rules, 2016, submitting valid Forms 2, 6, 7 and 9 as required under Schedules III, VI and VIII of those Rules.
DGFT Public Notice 64/15-20 dated 19-02-2020 · DGFT Public Notice 46/15-20 dated 14-01-2022 · Hazardous Waste (Management and Transboundary Movement) Rules, 2016 · Para 8(b) of General Notes ITC (HS)

A word of counsel

The most common error on this tariff line is submitting a PSIC where the declared place of inspection is the UAE on a consignment of ferrous scrap that UAE has banned for export — customs treat such a PSIC as a mis-declaration by the PSIA and will invalidate it, triggering consignment detention and potential confiscation proceedings. Additionally, note that the PSIC requirement is waived only for imports from safe countries or regions arriving through specified ports; for all other origins or unspecified ports, a valid online-generated PSIC is a non-negotiable pre-condition for out-of-charge.

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Frequently asked

Does HSN 7204 41 00 require BIS certification?

No, ferrous scrap turnings and stampings are not within the BIS Quality Control Order regime. Import is governed by compulsory SIMS registration under DGFT Policy Condition 5 of Chapter 72 and DGFT Notification 33/15-20, with a concurrent PSIC and hazardous-waste compliance requirement.

Is SIMS registration required for re-imports of steel used in packaging or for SEZ-DTA movements?

No. Per DGFT Policy Circular 38/15-20 dated 19-01-2022, re-import of steel goods solely for packaging purposes and SEZ-to-DTA movements (whether with or without value addition) are excluded from SIMS registration.

What happens if a PSIC is not generated through the DGFT online system after 1 July 2022?

Customs authorities may refuse to accept the PSIC, resulting in consignment detention at the port; the bill of entry cannot obtain out-of-charge until a valid online-generated PSIC bearing document code 856001 is uploaded in e-Sanchit.

Last verified against gazette notifications: 2026-05-16. Source: SIMS / DGFT / CBIC / Indian Customs CUSDATA.