Remelting scrap ingots

Remelting scrap ingots of iron or steel

SIMS CLEARANCE

HSN 7204 50 00 (Remelting scrap ingots) is subject to compulsory advance registration under the Steel Import Monitoring System (SIMS), administered by the Directorate General of Foreign Trade (DGFT) under DGFT Notification 33/15-20 and ITC (HS) policy condition 5 of Chapter 72. A Pre-Shipment Inspection Certificate (PSIC) from a DGFT-recognised Pre-Shipment Inspection Agency is required for both shredded and non-shredded scrap, with clearance permitted only at specified ports and locations.

What this is

HSN code

7204 50 00

Chapter

72 · Iron and steel

Primary regulator

SIMS · ITC (HS) policy condition 5 of Chapter 72; DGFT Notification 33/15-20

Customs documentation

SIMS registration number from DGFT
Pre-Shipment Inspection Certificate from DGFT-recognised agency
Hazardous waste forms from CPCB

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 under SIMS through the DGFT online portal, obtaining an automatic registration number by paying ₹500. The registration may be applied for no earlier than 60 days before the expected arrival date and the registration number remains valid for 75 days. Document code 856001 (PSIC) must be uploaded in e-Sanchit before out-of-charge.
DGFT Notification 28/2023 dated 28-08-2023 · DGFT Notification 33/15-20 dated 28-09-2020 · ITC (HS) policy condition 5 of Chapter 72
2
Obtain a PSIC generated online through the DGFT website via a recognised Pre-Shipment Inspection Agency; PSICs dated on or after 1 July 2022 not generated through DGFT online systems will not be accepted by Indian customs. If the PSIC records the place of inspection as UAE and UAE has banned export of the specific ferrous scrap, treat the PSIC as invalid — such cases may amount to mis-declaration.
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 only through specified ports and locations per para 2.54 of the Handbook of Procedures (HBP). Ensure compliance with para 8(b) of General Notes of ITC (HS) and Rules 11, 12 and 13 of the Hazardous Waste (Management and Transboundary Movement) Rules, 2016, including valid Forms 2, 6, 7 and 9. Subject consignments to radioactive-contamination random checks per DGFT Public Notice 37/2015-20 dated 15-11-2021.
DGFT Public Notice 64/15-20 dated 19-02-2020 · DGFT Public Notice 46/15-20 dated 14-01-2022 · DGFT Public Notice 37/2015-20 dated 15-11-2021 · Hazardous Waste (Management and Transboundary Movement) Rules, 2016

A word of counsel

The most common error on this tariff line is filing the PSIC outside the DGFT online system — a paper or manually issued PSIC dated on or after 1 July 2022 is rejected by customs, triggering detention and demurrage at the port of import. Separately, importers operating through SEZ or re-importing steel for packaging purposes should confirm their SIMS exemption applies before the vessel arrives; a missing registration number where exemption does not in fact apply results in ground rent and Restricted-import enforcement under DGFT policy condition 5.

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Frequently asked

Does HSN 7204 50 00 require BIS certification?

No, remelting scrap ingots of iron or steel fall outside the BIS Quality Control Order regime; no BIS QCO covers this product family. Import is governed by mandatory SIMS registration administered by the Directorate General of Foreign Trade under ITC (HS) policy condition 5 of Chapter 72 and DGFT Notification 33/15-20.

Is a PSIC required for imports from all countries, and which document code applies?

A PSIC (document code 856001, uploaded in e-Sanchit) is required for both shredded and non-shredded scrap from all origins except safe countries or regions imported through specified ports per DGFT Public Notice 64/15-20 and Public Notice 46/15-20.

Are re-imports of steel for packaging purposes or SEZ-to-DTA transfers exempt from SIMS registration?

Yes. Per DGFT Policy Circular 38/15-20 dated 19-01-2022, re-imports solely for packaging and SEZ-to-DTA transfers — whether with or without value addition — are not required to register under SIMS, as these are not primarily meant for value addition in the domestic market.

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