DGFT Imposes Minimum Import Price on Virgin Multi-layer Paper Board

The Government of India has introduced a significant amendment to the import policy for specific items under Chapter 48 of the ITC HS, 2022, Schedule-I (Import Policy). This change, effective immediately, aims to regulate the import of Virgin Multi-layer Paper Board (VPB) by imposing a Minimum Import Price (MIP) and revising policy conditions for various HS codes.

Key Highlights of the Notification

On August 22, 2025, the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, issued Notification No. 26/2025-26, detailing the amendments. Here are the key updates:

Minimum Import Price (MIP)
- A Minimum Import Price (MIP) of INR 67,220 per MT on Cost, Insurance, and Freight (CIF) value has been imposed for the import of Virgin Multi-layer Paper Board (VPB).
- This restriction applies to items under HS codes 48059100, 48059200, 48059300, 48109200, and 48109900.
Revised Import Policy Conditions
- While the import of these items remains “Free,” it is subject to Compulsory Registration under the Paper Import Monitoring System (PIMS).
- Import of VPB with a CIF value less than INR 67,220 per MT is now classified as “Restricted” until March 31, 2026.
Prohibition on Stock Lot Imports
- For HS codes 48109200 and 48109900, the import of stock lots remains prohibited as per Notification No. 45/2015-2020 dated January 31, 2020.

Effect of the Notification

This amendment aims to regulate the import of Virgin Multi-layer Paper Board (VPB) to ensure fair trade practices and protect domestic industries. By imposing a Minimum Import Price, the government seeks to curb the influx of low-cost imports that could potentially harm local manufacturers.

Implications for Importers

Importers dealing with VPB under the specified HS codes must adhere to the following:

Ensure compliance with the Paper Import Monitoring System (PIMS).
Avoid importing VPB with a CIF value below INR 67,220 per MT, as it is now restricted.
Be aware of the prohibition on stock lot imports for certain HS codes.

Conclusion

The new import policy amendment reflects the government’s commitment to fostering a balanced trade environment and supporting domestic industries. Importers are advised to carefully review the revised conditions and ensure compliance to avoid disruptions in their operations.

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Source: DGFT

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