India has reimposed a minimum import price (MIP) on
four HSN codes under Chapter 60, which covers synthetic
knitted fabrics. The MIP initially ended on March 31 this
year. The Directorate General of Foreign Trade (DGFT),
under the Ministry of Commerce and Industry, issued a
notification on April 23 in this regard. As a result, there was
a 22-day period without the MIP, during which industry
experts anticipate a significant increase in imports of the
product.According to the notification, DGFT has reimposed
an MIP of $3.5 per kg on HSN codes 60019200, 60053600,
60053790, and 60053900 for synthetic knitted fabric. These
codes cover products made from man-made or synthetic
fibres (unbleached or bleached). Synthetic knitted fabrics
attract a 20 per cent duty on their value. Following the imposition of the MIP, the duty will be based on the determined
minimum import value or the actual import value (whichever is higher). The MIP was initially imposed on March 16,
2024, and extended over time, ending on March 31, 2025.
Industry sources stated that the latest notification caused a
22-day blackout period when the MIP was not effective, creating a strong possibility of significant imports of synthetic
knitted fabrics during that time.The import of synthetic
knitted fabrics under ITC (HS) codes 60019200, 60053600,
60053790, and 60053900 is ‘restricted’ until March 31, 2026,
according to the notification. However, imports are ‘free’ if
the CIF value is $3.5 per kilogram or higher. Additionally,
inputs imported by Advance Authorization holders, Export
Oriented Units (EOUs), and units in Special Economic Zones
(SEZs) will be exempt from the MIP condition.It is worth
noting that the MIP on synthetic knitted fabric under nine
other codes (60041000, 60049000, 60062200, 60063100,
60063200, 60063300, 60063400, 60064200, and 60069000)
ended on March 31, 2025. However, the government had
imposed a fixed basic customs duty of Rs. 115 per kg in the
Union Budget for FY 2025-26. This means that imports of
synthetic knitted yarn under these codes will attract a duty
of either 20 per cent or Rs. 115 per kg (whichever is higher).
This change came into effect immediately following the
government’s announcement on February 1, 2025. However,
more than three dozen codes for synthetic knitted fabrics remain unrestricted. Industry stakeholders are concerned that
imports may be diverted under non-MIP and non-BCD codes.
There are 55 codes under Chapter 60, of which 45 are active, according to industry sources.