CIMS Certificate: Eligibility, Document, Procedure

Introduction 

The Ministry of Commerce and Industry has initiated the Coal Import Monitoring System (CIMS), which mandates coal importers to provide advanced information in an online system for import and obtain an automated registration number or CIMS registration to enable effective foreign trade policy interventions.

Under the CIMS, coal importers are required to submit advance information in an online system for the import of steam coal. Upon submission of online data/information, the system will generate an automatic registration number, and no manual documents are required from any public authority for this purpose.

On registration, coal importers will be provided with a unique registration number, URN, starting with COA.

The Directorate General of Foreign Trade (DGFT), Government of India, has addressed the import policy of diverse categories of coal, including Anthracite, Bituminous, Coking, and Steam, and has made it mandatory for all coal importers to register under the Coal Import Monitoring System (CIMS).

The primary objective of the CIMS is to promote economic self-reliance by reducing imports and increasing the export of value-added products.

To tighten screening and curb imports to protect domestic producers, India has made it mandatory for coal importers to disclose future shipments.

In addition to mandating registration, the CIMS provides valuable information on coal prices and other market data.

Objective 

The Coal Import Monitoring System (CIMS) is an initiative undertaken by the Government of India to maintain and update a comprehensive database of advanced information about coal products imported into the country. The primary objective of CIMS is to facilitate the formulation and implementation of effective coal import policies by utilizing the data received through the system. 

CIMS aims to ensure that only high-quality coal is imported into the country, while also regulating the coal import market and protecting domestic coal producers from unfair competition. The system plays a crucial role in providing the government with reliable and accurate information about the volume, value, and quality of coal imports, which enables them to make informed decisions regarding coal import policies. 

In summary, the Coal Import Monitoring System is a vital tool utilized by the Government of India to ensure the quality and fairness of the coal import market while also protecting the interests of domestic coal producers.

A legal consequence 

Legal action would be taken including the action under the FTDR Act 1992 for the coal importers who are failing to register under CIMS  in advance or are found to furnish wrong data in the online system. 

Fee requirement for CIMS  registration 

The coal import monitoring system CIMS  shall require the importer to submit advance information in an online system for the import of product and obtain an automatic registration number by paying the registration fee of Rs 1 per thousand addresses to a minimum of rs 500 as directed by the director general of foreign trade DGFT  and a maximum of rs 1 lakh on the aggregate CIF value of imports.

Validity of registration 

The importer can apply for registration not earlier than 60 days and not later than 15 days before the expected date of arrival of the import consignment. 

the automatic registration number thus granted shall remain valid for 75 days.

Post compliance 

The importer shall have to enter the registration number and expiry date of registration in the bill of entry to enable customs clearance of the consignment.

Eligibility for CIMS  registration 

The data received through the CIMS  helps the government in effective policy formulation and implementation regarding coal imports.

The import products required registration under the CIMS are as follows 

Hs code                                   product description 

27011100                                anthracite coal 

27011200                                bituminous coal 

27011910                                coking coal 

27011920                                steam coal

27011990                                other coal 

One license application can cover multiple products. Cims has the provision of adding multiple products for each registration, provided the importer, exporter, manufacturer, country of origin, and port of exportation are the same.

Document required to get CIMS registration number 

To get the registration number / CIMS  license importer requires various documents as follows. 

• Digital signature certificate 
• Active IEC import -export copy 
• Registration cum membership certificate RCMC

Import details 

• Exporter name, address, country
• Country of origin
• Purpose of import
• Port of exportation 
• Port of import 
• Expected date of import and export 
• Expected port of entry 

Product details 

• Hsn code & description
• Equivalent domestic grade as defined by CCO
• End use and end use description
• Type of coal
• Ic number 
• Technical details 
• Quantity & cif value of import 

Destination details 

• Name, address of expected destination 
• Mode of transportation
• Expected destination – railway station 
• Quantity & cif value of import 

Fee payment challan & submit 

• Total CIF value in USD and INR 
• Registration fees in INR 
• Name of the person filling out the registration 
• declaration/ undertaking.

Procedure to get the registration number/ license under cims  

The online application has to be done on the government’s official website for import under the import monitoring system [ims].

Step 1 online registration 

Importers first registered on the CIMS portal, providing their details and necessary document. 

Step 2 Product detail 

detailed information about the imported coal products, including quantity value and country of origin must be submitted 

Step 3: monitoring and compliance 

Registered importers are obliged to monitor and perform compliance checks to ensure adherence to the recommendation.

The registration number / CIMS  registration would be generated immediately as the application is submitted on the portal.

The steam coal importers only have to enter the registration number and expiry date of the registration number in the bill of entry.

Benefits of CIMS registration 

Transparency and accountability 

Cims promotes transparency in the coal import process by increasing accountability among importers and reducing the possibility of malpractice.

• Protection of domestic industry 

By monitoring coal imports CIMS  safeguards the interest of the domestic coal industry, ensuring fair competition and growth.

• Informed decision making 

Government authorities can use the data collected through CIMS to decide on tariffs and trade policies, ultimately benefiting the country. 

Challenges and prospects 

• technological challenges 
• Expanding coverage 

Conclusion 

The Indian government has implemented the Coal Import Monitoring System (CIMS) to regulate coal imports, protect domestic industry, and monitor the growth and stability of the Indian coal sector.

CIMS provides data on the importer products registered for import, the total quantity being imported, and even the import quantity of those grades that are available domestically. This will help the domestic industry to formulate strategies for substituting imports. 

The system will also help the government to understand the requirements of end-users more clearly and help fulfill their needs, which may affect the business and revenue of importers in the long run.