In a significant regulatory move, the Ministry of Steel (Technical Division) has announced that 202 BIS licences will be exempt from the mandatory compliance requirement on the SIMS (Steel Import Monitoring System) portal when the input steel is supplied by Integrated Steel Plants (ISPs). This update, formalised in order F. No. S-20011/15/2024-TECH, aims to reduce procedural friction for certain importers and downstream manufacturers.
What’s New: Key Changes in Exemption
- The exemptions apply to 202 specific BIS licences, which are listed in Annexure-1, effectively removing the obligation to adhere to certain SIMS requirements when those licences are used for ISP-supplied input steel.
- These relaxations are conditional on declarations made by the concerned entities; however, BIS retains the authority to perform verifications to ensure the declarations are accurate.
- The Ministry has clarified that this is not a one-time action — the list of exemptions may be expanded in the future, based on applications in line with an earlier order (dated 11 July 2025).
Who Benefits — And Who Is Covered
- Annexure-1 names several foreign steel producers across countries such as Japan, South Korea, Germany, France, Belgium, Italy, Russia, Sweden, and others.
- Among the prominent names are Nippon Steel Corporation (with 43 licences) and JFE Steel Corporation (26 licences), both enjoying relief under the exemption framework.
- Importers, ISPs, and manufacturers in the supply chain who use ISP-supplied steel inputs under the covered licences are the primary beneficiaries of this adjustment.
Implications for Stakeholders
Smoother Processing on SIMS
By removing certain licences from mandatory SIMS adherence, importers and downstream manufacturers should face lower procedural barriers when declaring or clearing eligible steel consignments.
Need for Vigilance & Record Keeping
While exemptions reduce some compliance load, the process is still traceable and subject to checks. Entities must maintain:
- Copies of declarations,
- Licence documentation,
- Contracts evidencing steel supply from ISPs,
- Mill Test Certificates,
- Historical SIMS filings and records,
to support any subsequent audits or verifications by BIS.
Dynamic Updates Expected
The Ministry’s note that new licences might be brought into the exemption fold means that businesses should regularly monitor notifications and annexures. Also, ensure SOPs and compliance checklists are regularly updated.
Steps for Affected Businesses
- Check Annexure-1: Determine whether your BIS licence (or that of your supplier) is among the exempted 202.
- Map to Imports: Align the exemptions with ongoing or planned steel imports that fall under ISP-supplied input usage.
- Maintain Compliance Backups: Keep all related declarations, supply contracts, licence copies, test certificates, and prior SIMS submissions at hand for verification.
- Watch for Additions: Since further licences may be exempted over time, ensure you track future updates and integrate them into your import/compliance strategy.
