Scrapping mandatory registration for electronic imports, like ICs, memories, and amplifiers, the central government is streamlining the process and lifting penalties for businesses.
The Union Ministry of Commerce and Industry has decided to abolish the mandatory registration requirement for specific electronic integrated circuits under the Chip Import Monitoring System (CHIMS) act, according to an announcement last week.
Previously, importers of certain electronic components, including integrated circuits, memories, and amplifiers, were required to submit advance details through an online system before importing. This system would generate a unique registration number, eliminating the need for manual submissions to other authorities. Importers could apply for registration up to 60 days before the expected arrival of their goods or even on the day of import.
The registration fee for these imports was set at Rs 1 per Rs 1000 of the CIF (Cost, Insurance, and Freight) value, with a minimum fee of Rs 100 and a maximum fee of Rs 500. Failing to complete the registration process would result in penalties as per the Foreign Trade Development and Regulation (FTDR) Act of 1992.
However, the Directorate General of Foreign Trade (DGFT) notified that the compulsory registration for chip imports has been discontinued, reversing the policy introduced in 2021. This move effectively nullifies the previous DGFT gazette notification that mandated the registration of IC imports under CHIMS.
The initiative aims to simplify the import process and reduce administrative burdens for businesses importing these electronic components.
This system was revised before in October 2021. At that time, the import conditions for items under specific ITC (HS) codes—85423100, 85423200, 85423300, 85423900, and 85429000—were altered from ‘free’ to ‘free subject to compulsory registration’ under CHIMS.
However, with the latest update, these items once again fall under the ‘free’ category, meaning importers no longer need to register them before importing.
