India is the world's second-largest crude steel producer. Yet, the country imports millions of tonnes of specialized steel grades every year. If you're planning to import steel in India, understanding the regulatory landscape is the first step toward a hassle-free experience. The process involves multiple licences, mandatory registrations, and coordination with several government agencies.
At the heart of this regulatory framework sits the Steel Import Monitoring System (SIMS). Launched by the Directorate General of Foreign Trade (DGFT) in November 2019, SIMS requires every steel importer to obtain a Unique Registration Number (URN) before clearing consignments through Indian customs. This guide covers everything you need to know, from foundational prerequisites like IEC and GST to the actual SIMS registration process and the newly introduced SARAL SIMS for small importers.
What is the Steel Import Monitoring System (SIMS)?
The steel import monitoring system is an online platform managed jointly by the Ministry of Steel and the DGFT. Its core purpose is to build a constantly updated database with advance information about steel products entering India. This data helps the government formulate trade policies, identify dumping trends, and safeguard domestic manufacturers from unfair competition.
SIMS registration is mandatory for all iron and steel products classified under Chapters 72, 73, and 86 of the ITC (HS) Code. Over 542 tariff lines at the 8-digit HS Code level fall within its scope. For each consignment, a separate registration is required, though a single application can cover multiple steel items. The application must be filed between 15 and 60 days before the expected arrival of the shipment.
Once approved, the system generates a URN valid for 75 days. You must quote this number in the Bill of Entry at the time of customs clearance. Without a valid URN, customs officials will not process your steel shipment.
Prerequisites Before Applying for SIMS Registration
Before you access the SIMS portal, a few foundational registrations need to be in place. These serve as the building blocks of your import infrastructure.
Import Export Code (IEC)
The IEC is a 10-digit identification number issued by the DGFT. No business can legally import goods into India without it. Your IEC number also acts as your login credential for the SIMS portal. The entire process is handled online through the DGFT website and typically takes 3 to 7 working days. If you need guidance, professional support for IEC registration can simplify the documentation and submission.
GST Registration
A valid GSTIN is essential because Integrated GST (IGST) is levied on all steel imports during customs clearance. Your GST details must match the information in your IEC. If your business hasn't registered yet, the complete process for GST registration is straightforward and can be completed online.
AD Code Registration on ICEGATE
The Authorized Dealer (AD) Code is a 14-digit number issued by your bank. It connects your business current account to the customs system and is necessary for processing foreign exchange remittances. You must register this code on the ICEGATE portal, the electronic gateway of the Central Board of Indirect Taxes and Customs (CBIC). Without an AD Code, filing the Bill of Entry is not possible.
Digital Signature Certificate (DSC)
A Class 3 DSC with signing and encryption capabilities is required for authentication on ICEGATE. The DSC token used for ICEGATE is different from the standard signing-only DSC used for GST or income tax returns. You can obtain your Digital Signature Certificate through a licensed Certifying Authority.
Step-by-Step Steel Import Procedure in India
Here is the complete steel import procedure broken into clear, actionable steps.
Step 1: Obtain Your IEC from DGFT
Visit the DGFT portal and apply for an Import Export Code. Keep your PAN card, business registration proof, bank account details, and a cancelled cheque ready. The IEC holds lifetime validity and is typically issued within a week.
Step 2: Complete GST Registration
Register on the GST portal at gst.gov.in. Verify that your business name, address, and PAN details are consistent across all records. Even a minor mismatch can trigger complications during SIMS registration or customs clearance.
Step 3: Register on ICEGATE and Add Your AD Code
Create an account on the ICEGATE portal using your Class 3 DSC. Navigate to the profile section, select the bank account option, and add your AD Code. Upload the bank's AD Code letter, authenticate with OTP, and submit. Approval typically comes within 24 hours.
Step 4: Log In to the SIMS Portal
Visit the official SIMS portal at sims.steel.gov.in. Enter your IEC number and the captcha code, then click Generate OTP. The password will be sent to the mobile number and email registered with your DGFT profile. Enter the OTP to access the dashboard.
Step 5: Fill the SIMS Registration Application
Click on New Registration and provide all mandatory details. These include exporter and manufacturer information, country of origin, HS code, product description with technical specifications, quantity, and estimated CIF value. The DGFT also requires you to declare whether a similar steel grade is manufactured in India. If yes, a justification for importing must be provided.
Step 6: Pay Fees and Submit
The government fee for SIMS registration is Rs. 500 per application. You can authenticate the submission using either your DSC or Aadhaar-based verification. After successful submission, the system generates a URN that is displayed on screen and also communicated via email and SMS.
Step 7: File the Bill of Entry with URN
Once the steel shipment arrives at an Indian port, file the Bill of Entry on ICEGATE. Include the SIMS URN and its expiry date in the designated fields. Customs will verify the URN before processing clearance. Pay the applicable customs duty, IGST, and any anti-dumping or safeguard duties.
SARAL SIMS: Simplified Registration for Small Importers
In November 2025, the Ministry of Steel launched SARAL SIMS to reduce the compliance burden on MSMEs, startups, and export-linked importers. This simplified route is accessible through a dedicated portal at sims.steel.gov.in/SARAL.
Under SARAL SIMS, you only need to declare your total intended annual import quantity. The system then issues a single registration number valid for multiple consignments throughout the financial year. This eliminates the repetitive task of generating a new SIMS number for every shipment. For FY 2025-26, small importers can use SARAL SIMS for up to 500 MT. The limit rises to 1,000 MT from FY 2026-27.
The regular SIMS process has also been simplified. Mandatory data fields have been reduced from 56 to just 20. Additionally, the requirement of a No Objection Certificate (NOC) for non-QCO steel grades has been withdrawn. All these changes took effect from 21 November 2025.
Documents Required for Steel Import in India
Organized documentation prevents delays at customs. Below is a consolidated list of documents needed at different stages of the process.
Customs Duties Applicable on Steel Imports
When you import steel in India, several duties and taxes are levied at the port of entry. The basic customs duty on most steel products ranges between 7.5% and 15%, depending on the HS code. In addition, you must pay IGST (typically 18%), Social Welfare Surcharge (10% of basic duty), and any applicable anti-dumping or countervailing duties.
The total landed cost varies based on the country of origin, applicable trade agreements, and product category. Importers sourcing steel from countries covered under Free Trade Agreements or Preferential Trade Agreements may qualify for reduced duty rates, provided a valid Certificate of Origin is furnished.
Common Challenges and How to Avoid Them
Mismatched details across IEC, GST, and PAN records remain the most frequent cause of application rejection. Before starting any registration, verify that your business name, address, and signatory information are consistent across every document.
Another typical mistake is applying for SIMS outside the permissible window. The application can be filed only between 60 and 15 days before the expected arrival of goods. Submitting too early or too late renders the registration invalid. Since the URN expires after 75 days, plan your shipping schedule carefully so the consignment arrives within the validity period.
Technical problems with DSC tokens on ICEGATE also cause delays. Confirm that your DSC has both signing and encryption capabilities, is mapped to the correct ICEGATE user ID, and that your browser is configured properly before beginning the registration.
