CBIC Clarifies BIS and SIMS Compliance for Steel Imports

The Central Board of Indirect Taxes and Customs (CBIC) has issued Instruction No. 23/2025-Customs, dated 15th July 2025, modifying the earlier Instruction No. 16/2025-Customs. This directive follows the Ministry of Steel’s Order dated 11th July 2025 and provides exemptions from mandatory Indian Standards (IS) compliance under Quality Control Orders (QCOs) for certain categories of steel imports.

This step brings much-needed regulatory relief to importers and Integrated Steel Plants (ISPs) navigating the complexities of the Steel Import Monitoring System (SIMS).

Background: BIS and SIMS Compliance Requirements

The Ministry of Steel, under its regulatory oversight, has made compliance with Bureau of Indian Standards (BIS) certification mandatory for specific steel and steel product imports through a series of QCOs. As per these norms:

Importers must ensure that input material used in the final imported steel products adheres to Indian Standards.
Such imports must be registered on the SIMS Portal managed by DGFT before shipment.

The earlier CBIC Instruction No. 16/2025-Customs laid down the requirement for customs authorities to strictly enforce these mandates at the time of import clearance.

Highlights of Instruction No. 23/2025-Customs

The latest instruction dated 15th July 2025 introduces two key exemptions to reduce operational bottlenecks and accommodate industry realities:

1. Exemption for Shipments with Bill of Lading On or Before 15.07.2025

Scope: Import consignments of steel products with a “shipped on board” date on or before 15th July 2025 are exempted from the requirement of ensuring that input steel material conforms to Indian Standards.
Impact: This allows clearance of shipments already an route or dispatched before the implementation of strict norms, avoiding customs delays and demurrage costs.

2. Exemption for Integrated Steel Plants (ISPs)

Scope: Final steel products manufactured and supplied by ISPs are exempt from the mandatory BIS certification of the input steel used.
Conditions:
- ISPs must declare their status by emailing the Ministry of Steel at tech-steel@nic.in.
- The declaration must include a list of operative BIS licences and relevant supporting documents.
- Until BIS verifies these licences, the exemption will remain in effect provisionally.
Warning: Any misdeclaration will result in debarment from the SIMS portal, impacting future imports.
Digital Provisions: The Ministry of Steel is expected to incorporate provisions in the SIMS portal to reflect this exemption category and facilitate smoother filings.

Actionable Steps for Stakeholders

For Importers:

Verify Bill of Lading dates immediately. If dated on or before 15.07.2025, goods are eligible for exemption.
Ensure documentation is available to substantiate compliance or exemption claims.

For Integrated Steel Plants:

Compile and email BIS licence details to the Ministry of Steel at the earliest.
Prepare declarations in line with the QCO mandates and BIS norms.
Engage with BIS for any pending verification or renewal of licences.

For Customs Brokers and Clearing Agents:

Educate clients about the new exemptions.
Track shipment dates and supplier classifications (ISP vs. Non-ISP).
Liaise with customs officials for timely clearances under the modified norms.

Legal Implications and Compliance Risk

The exemption brings significant relief but also introduces accountability and audit trails:

False declarations by ISPs may result in debarment from SIMS, severely restricting import access.
Importers claiming exemption under the BoL clause must maintain shipping documentation carefully to avoid disputes at clearance.

Legal experts recommend documenting all correspondence and retaining records for audit scrutiny, especially under the provisions of the Customs Act, 1962 and Foreign Trade Policy (FTP) 2023.

Conclusion: A Balanced Move for Trade Facilitation

With Instruction No. 23/2025-Customs, CBIC demonstrates a pragmatic approach to import regulation—balancing the enforcement of quality norms with transitional support for trade. The exemptions for in-transit shipments and Integrated Steel Plants reflect the government’s responsiveness to stakeholder concerns and commitment to ease of doing business.

As the SIMS portal evolves to accommodate these changes, importers and industry players are advised to stay updated and proactive in compliance.

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Source: CBIC, Ministry of Finance, Govt. of India

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