The office of the directorate general of foreign trade (DGFT) announced that the government scrapped the mandatory registration of certain ICs under its Chip Import Monitoring System (CHIMS). This negates the 2021 DGFT gazette notification that made it compulsory to register the import of integrated circuits (IC) under CHIMS.
From October 2021, the import policy condition of items under ITC (HS) codes 85423100, 85423200, 85423300, 85423900, and 85429000 were revised from “free” to “free subject to compulsory registration” under CHIMS. However, as of November 29, 2024, the policy conditions for these items were struck off, essentially making them “free” once more.
The DGFT’s Chip Import Monitoring System requires importers to submit advance information in an online system for import of items. The system generates an automatic unique registration number, bypassing the need for manual document submissions to any other public authority.
An importer can apply for CHIMS registration from two months (60 days) before the expected import date, including the the same day of arrival of import.
CHIP registrations involved a registration fee of Rs 1 per Rs 1000 of the CIF value of imports, subject to a Rs 100 minimum and a maximum of up to Rs 500. Earlier, a failure to register involves penalties in line with the FTDR Act, 1992.
The latest notification, approved by the Minister of Commerce and Industry, essentially removes the mandatory registration for certain ICs and parts like memories and amplifiers. "The requirement of compulsory registration under Chip Imports Monitoring System (CHIMS) …has been discontinued, with immediate effect,” read the notification.
