Paper import system to prevent under-invoicing

As per an official press note issued by the DGFT, the PIMS shall come into effect from 1 October 2022. The online facility of registration has been available from 15 July 2022.

The press note shared with PrintWeek said, “The PIMS shall be applicable on import by a Domestic Territory Area unit on a wide range of paper products covering 201 tariff lines, such as newsprint, handmade paper, coated paper, uncoated paper, Litho and offset paper, tissue paper, toilet paper, cartons, labels, etc. However, paper products like currency paper, bank bond and cheque paper, security printing paper, etc. have been excluded from mandatory registration.”

The decision follows concerns raised by the domestic paper industry with regards dumping of paper products in the country by various means such as under-invoicing and re-routing goods via other countries in lieu of trade agreements.

“Any importer will be able to obtain an automatic registration number online by paying a registration fee of Rs 500. The importer can apply for registration not earlier than the 75th day and not later than the fifth day before the expected date of arrival of import consignment,” the commerce ministry said.

The automatic registration number thus granted shall remain valid for a period of 75 days, the ministry further added.

The India paper industry has been voicing its concern about dumping of paper products in the domestic market by way of under-invoicing, entry of prohibited goods by mis-declaration, re-routing goods through other countries in lieu of trade agreements.

A significant proportion of paper products are imported under others category tariff lines. Paper industry experts say “the move will promote Make in India and Atma Nirbhar category.”

PrintWeek spoke to an industry association head who said, “This will increase the paperwork; also there is a possibility of reduction in stock lots and underbilling.” This was refuted by an industry expert who said, “not really since the PIMS is an online system. Therefore, it will help genuine imports, irrespective of stock lots etc."