The Narendra Modi government has sought feedback from industry associations on establishing an import monitoring mechanism for engineering goods. Currently, such a system exists for steel imports where companies have to intimate the government about inbound consignments from countries at least 15 days in advance.

Share Market Live

NSE

Multiple sources have told CNBC-TV18 that the government is internally discussing a proposal for a similar import monitoring system on four categories of engineering goods. These goods are covered under the HS tariff code Chapter 84 (boilers, machinery, mechanical appliances, components), Chapter 85 (electrical machinery, sound recorders, television, components), Chapter 86 (rail locos, rolling stock, traffic signalling equipment, track fixtures) and Chapter 87 (vehicles and parts).

“At least 50 percent of imports from China happen through chapter 84 and 85 goods and hence the government wants to monitor inbound shipments in these categories,” said a member of an industry association who was aware of the proposal.

“We have been asked to give feedback on the import monitoring system on four categories of engineering goods,” said another member of an industry association.

As per the current import monitoring system on steel, an importer has to give advance intimation to the government of at least 15 days before importing. Such an importer has to register details of consignments in a portal which includes pricing details and type of steel that is being imported. Moreover, a fee has to be paid to the government which can go up to Rs 1 lakh per consignment.

Industry associations maintain that a 15 day minimum advance intimation period is not feasible especially if imported consignments come from middle east or South-East Asian nations. “A ship from Dubai or Singapore reaches an Indian port in 7 to 8 days. In the US or EU where import monitoring systems exist, importers are given up to 72 hours for advance intimation,” said an engineering exporter who uses imported inputs.

As per the existing norms in the steel Import Monitoring System, an importer can be penalised under the FTDR Act if a consignment reaches an Indian port before 15 days. Industry associations have also sought a fee waiver if such a system gets implemented by the government for imported engineering goods.

First Published:Jul 29, 2020 1:52 PM IST