DGFT Restricts Import of Roller Chains Valued Below ₹235/kg

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, Government of India, has issued Notification No. 13/2025-26, amending the import policy for roller chains and their parts under Chapter 73 of ITC (HS), 2022, Schedule I. The change is effective immediately and aims to curb the import of low-value roller chains, often associated with substandard quality or circumvention of duty measures.

Key Highlights of the Notification

HS Codes Covered:
- 73151100 – Articulated link chain (Roller chain)
- 73151900 – Parts of articulated link chains
- 73159000 – Other parts
Revised Import Condition (w.e.f. date of Notification):
- Imports of roller chains and parts thereof under these HS codes are now “Restricted” if the CIF (Cost, Insurance, Freight) value is less than ₹235 per kg.
- Imports above ₹235/kg remain “Free” under the import policy.

Effect of the Notification

Low-value imports (CIF < ₹235/kg) now fall under the “Restricted” category, requiring DGFT authorization for clearance.
This measure is likely aimed at:
- Preventing the dumping of substandard chains into Indian markets.
- Protecting domestic manufacturers from unfair low-cost competition.
- Ensuring quality and traceability of critical mechanical components in automotive and industrial applications.

Who is Impacted?

Importers of industrial chains for use in automobiles, machinery, and conveyors.
Distributors sourcing cheaper alternatives from global suppliers.
OEMs and MSMEs that rely on imported chain assemblies for production or resale.

Legal Basis

The notification has been issued under:

Section 3 & Section 5 of the Foreign Trade (Development & Regulation) Act, 1992
Paragraphs 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2023

It has been approved by the Minister of Commerce & Industry and signed by Ajay Bhadoo, Director General of Foreign Trade.

What Importers Must Do Now

Verify CIF value per kilogram of roller chains and parts before placing import orders.
If below ₹235/kg:
- Apply for a DGFT import license under the “Restricted” category.
- Ensure documentary evidence and technical justification are submitted.
Update sourcing strategy to align with the revised policy and ensure quality compliance.
Maintain transaction-level records to avoid compliance penalties during clearance.

Conclusion

DGFT’s Notification No. 13/2025-26 is a quality-control-centric policy decision aimed at filtering low-cost, possibly inferior imports in the mechanical components sector. Importers and manufacturers must quickly adapt procurement plans to align with this policy change and avoid shipment holds or rejections at Indian ports.

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Source: DGFT

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