DGFT Imposes Minimum Import Price on Synthetic Knitted Fabrics

The Directorate General of Foreign Trade (DGFT) has issued Notification No. 05/2025-26 on 23 April 2025, introducing a Minimum Import Price (MIP) condition on four key categories of synthetic knitted fabrics under Chapter 60 of the ITC (HS), 2022. The measure is aimed at protecting domestic manufacturers from the surge of low-priced imports that could destabilize market conditions.

Key Highlights of the Notification

Import Policy Amendment

The following ITC (HS) codes have been reclassified as “Restricted”, with a conditional exemption based on the value threshold:

ITC (HS) Code	Item Description	Revised Import Policy
60019200	Of man-made fibres	Restricted; Free if CIF ≥ USD 3.5/kg
60053600	Unbleached/Bleached Synthetic Fabrics	Restricted; Free if CIF ≥ USD 3.5/kg
60053790	Other types of synthetic knitted fabric	Restricted; Free if CIF ≥ USD 3.5/kg
60053900	Printed synthetic knitted fabrics	Restricted; Free if CIF ≥ USD 3.5/kg

Exemptions from MIP

The MIP condition shall not apply to the following categories:

Advance Authorisation holders
Export Oriented Units (EOUs)
Units located in Special Economic Zones (SEZs)

Condition: The imported fabrics must not be diverted to the Domestic Tariff Area (DTA).

Legal Authority & Timeline

Imposed under Section 3 and 5 of the Foreign Trade (Development & Regulation) Act, 1992
Supported by Para 1.02 and 2.01 of the FTP 2023
Effective till 31 March 2026

Impact & Compliance

Importers must ensure their consignments meet the CIF threshold of USD 3.5/kg to enjoy duty-free clearance.
Customs declarations and documentation must be adjusted to reflect accurate CIF values.
Textile traders and manufacturers should evaluate sourcing alternatives or consider domestic procurement where pricing becomes unviable.

Conclusion

This policy intervention underscores the government’s intent to safeguard domestic textile production from low-cost synthetic imports. Importers, customs brokers, and sourcing professionals must immediately update compliance processes to ensure uninterrupted operations.

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Source: DGFT

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