India ranks among the largest coal consumers globally, yet domestic production often falls short of industrial demand. Power plants, steel manufacturers, cement producers, and several other sectors depend heavily on imported coal to sustain operations. If you are planning to import coal in India, the process requires careful navigation through regulatory frameworks, monitoring systems, and customs formalities.
The Coal Import Monitoring System, commonly known as CIMS, is the central compliance mechanism that every coal importer must engage with before bringing consignments into the country. Introduced by the Ministry of Coal, CIMS ensures transparency in coal trade and supports data-driven policy decisions. This guide covers everything from CIMS registration to customs clearance, helping you understand the coal import procedure from start to finish.
What is the Coal Import Monitoring System (CIMS)
The Coal Import Monitoring System is a digital platform developed by the Ministry of Coal, Government of India. It requires all coal importers to submit advance information about their shipments before or upon arrival at any Indian port. The system was introduced through DGFT Notification No. 56/2015-2020 dated January 28, 2021, and became effective from April 1, 2021.
The primary objective of CIMS is to create a real-time database of coal imports entering India. This data helps the government formulate trade policies, monitor coal quality, and track import volumes across different coal categories. Every importer must register on the CIMS portal and obtain an Automatic Registration Number (ARN) before filing the Bill of Entry at customs.
CIMS covers all coal products classified under Chapter 27 of the ITC (HS) Schedule, including anthracite, bituminous coal, coking coal, steam coal, lignite, peat, coke, and semi-coke. Without a valid CIMS registration, customs authorities will not clear your coal consignment.
Who Can Import Coal in India
Coal import in India operates under a relatively open policy compared to commodities like gold or precious metals. The import policy for coal is classified as "Free subject to compulsory registration under CIMS." This means any entity with the right credentials can import coal, provided they complete the mandatory registration.
To be eligible, you must hold a valid Import Export Code issued by the Directorate General of Foreign Trade. The IEC registration is the foundational requirement for any business engaged in cross-border trade. Without it, you cannot access the CIMS portal or file a Bill of Entry.
Typical importers include power generation companies, steel and iron manufacturers, cement plants, chemical processing units, industrial boiler operators, and trading firms that supply coal to end-users. Individual proprietors, partnership firms, LLPs, private limited companies, and public companies can all import coal, as long as they meet the regulatory prerequisites.
Types of Coal Covered Under CIMS
CIMS applies to a broad range of coal and coal-derived products. Understanding the classification helps you select the correct HS Code during registration and customs filing.
Selecting the correct HS Code is critical. An incorrect classification can result in wrong duty calculations, delayed clearances, or even penalties from customs authorities.
Step-by-Step CIMS Registration Process
Registering on the coal import monitoring system is entirely online. The process doesn't require submission of physical documents to any government authority. Here is how it works.
Step 1: Ensure Your IEC is Active. Before accessing the CIMS portal, confirm that your Import Export Code is active and that your mobile number and email address are updated in the DGFT IEC database. The system sends the Automatic Registration Number to the contact details linked with your IEC. If your details need updating, complete the IEC modification through the DGFT portal first.
Step 2: Log in to the CIMS Portal. Visit the official CIMS portal at imports.coal.gov.in and log in using your IEC credentials. The portal is accessible 24 hours a day, seven days a week.
Step 3: Fill in Consignment Details. Provide complete information about the coal being imported, including the type of coal, HS Code, country of origin, port of loading, expected date of arrival, CIF value, and quantity. Accuracy at this stage is essential, as incorrect data can attract punitive action under the Foreign Trade (Development and Regulation) Act, 1992.
Step 4: Pay the Registration Fee. Effective April 15, 2025, the Ministry of Coal has rationalized the CIMS registration fee to a flat rate of Rs 500 per consignment. This replaces the earlier tiered structure that ranged from Rs 500 to Rs 1,00,000. Payment can be made through net banking, credit or debit card, or UPI.
Step 5: Obtain the Automatic Registration Number (ARN). Upon successful submission and payment, the system generates a unique ARN starting with the prefix "COA." This number is sent to your registered mobile and email. The ARN remains valid for 75 days from the date of registration.
Step 6: Quote ARN in the Bill of Entry. When filing the Bill of Entry through ICEGATE, you must enter the ARN and its expiry date. Customs will not process clearance without a valid CIMS registration number.
Step 7: Update the Bill of Entry Number. After customs clearance, update the Bill of Entry (BOE) number in the CIMS portal within 15 days of obtaining the ARN. This step completes the registration cycle.
Registration Timeline and Validity
Timing your CIMS registration correctly is important. You can apply for registration no earlier than 60 days before the expected arrival of the consignment and no later than the actual date of arrival at the gateway port. Filing too early or too late will result in rejection.
It is advisable to file registrations well in advance to avoid last-minute disruptions. The CIMS portal operates round the clock, but technical glitches during peak hours can cause delays.
Customs Duty on Coal Imports in India
The customs duty structure for coal depends on the type of coal being imported and the applicable HS Code. Here is a general overview of the duty components that apply when you import coal in India.
The total landed cost of imported coal includes the CIF value, customs duties, IGST, port charges, and transportation costs. Businesses with valid GST registration can claim Input Tax Credit on the IGST component, reducing the effective tax outflow.
Customs duty rates are subject to revision through Union Budget announcements and CBIC notifications. Always verify the latest tariff rates before finalising your import costing.
Documents Required for Coal Import in India
Smooth customs clearance depends on complete and accurate documentation. Here are the key documents you need to keep ready when importing coal.
Coal quality documentation is particularly important. Indian customs may test samples to verify the declared quality parameters match the actual consignment. Discrepancies can lead to reassessment of duty or rejection of the shipment.
Penalties for Non-Compliance with CIMS
The government takes CIMS compliance seriously. Importers who fail to register their coal consignments on the CIMS portal, or those who furnish incorrect data, face punitive action under the Foreign Trade (Development and Regulation) Act, 1992.
Potential consequences include denial of customs clearance, imposition of fines, suspension or cancellation of IEC, and investigation by enforcement agencies. In severe cases, the consignment may be held at the port indefinitely, leading to demurrage charges and financial losses.
To avoid these risks, maintain accurate records of every import transaction, file CIMS registrations promptly, and ensure that all details provided on the portal match the actual shipment documentation. Professional assistance from experienced consultants can be invaluable, especially for first-time importers navigating the coal import procedure.
CIMS Compared to Other Import Monitoring Systems
India operates several import monitoring systems across different commodity sectors. Understanding how CIMS aligns with these systems provides useful context.
The Ministry of Coal rationalized the CIMS fee structure in April 2025 to align it with SIMS, NFIMS, and PIMS. This uniformity simplifies compliance for businesses that import multiple commodity types.
