DGFT Clarifies Exemptions on Minimum Import Price (MIP) for Virgin Multi-layer Paper Board (VPB)

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has issued Policy Circular No. 04/2025-26 dated 03 September 2025, providing crucial clarifications regarding the applicability of the Minimum Import Price (MIP) on Virgin Multi-layer Paper Board (VPB). This circular address concerns raised by industry stakeholders, including Export Oriented Units (EOUs) and Special Economic Zone (SEZ) units, following the imposition of MIP through Notification No. 26/2025-26 dated 22 August 2025.

Key Highlights of the Circular

Minimum Import Price (MIP) Details
- The MIP of INR 67,220 per MT on a Cost, Insurance, and Freight (CIF) basis has been imposed for the import of Virgin Multi-layer Paper Board (VPB) under ITC (HS) Codes 48059100, 48059200, 48059300, 48109200, and 48109900.
- This restriction is applicable until 31 March 2026.
Exemptions for EOUs and SEZ Units
- As per Para 6.01(d) of the Foreign Trade Policy (FTP), 2023, and Rule 27 of the SEZ Rules, 2006, imports of VPB by 100% EOUs and SEZ units are exempted from the MIP.
- However, this exemption is valid only if the imported goods are not sold into the Domestic Tariff Area (DTA).
Exemptions under Advance Authorization and DFIA Schemes
- Imports of VPB under Advance Authorization or Duty-Free Import Authorization (DFIA) schemes are also exempted from the MIP restriction, as per Para 4.18(iv) of FTP, 2023.

Implications for Trade and Industry 

This clarification provides much-needed relief to EOUs, SEZ units, and entities operating under Advance Authorization or DFIA schemes, ensuring that their operations remain unaffected by the MIP restrictions. It also reinforces the government’s commitment to supporting export-oriented businesses and promoting ease of doing business.

Compliance and Enforcement

The DGFT has emphasized that any deviation from the prescribed provisions will attract penal action as per applicable rules and laws. Customs authorities and trade stakeholders are advised to adhere strictly to these guidelines to avoid penalties.

Conclusion

The DGFT’s proactive approach in addressing industry concerns and providing clear exemptions under specific schemes and policies is a welcome move. This circular ensures that export-oriented businesses and SEZ units can continue their operations seamlessly while maintaining compliance with the government’s trade policies.

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Source: DGFT

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