DGFT Amends Import Policy for Sulfadiazine AP

The Government of India, through the Ministry of Commerce & Industry, has issued Notification No. 41/2025-26 dated 10th October 2025, introducing significant amendments to the import policy conditions for Sulfadiazine API under Chapter 29 of the ITC (HS), 2022, Schedule-I (Import Policy). This notification, issued by the Directorate General of Foreign Trade (DGFT), aims to regulate the import of Sulfadiazine API to ensure compliance with the revised policy framework. Below, we provide a detailed overview of the notification and its implications.

Key Details of the Notification

1. Revised Import Policy Conditions 

The notification amends the import policy conditions for the following HS codes under Chapter 29:

ITC (HS) Code	Description	Existing Import Policy	Revised Policy Condition
29359013	Sulphamethoxazole, sulphafurazole, sulphadiazine, sulphadimidine, sulphacetamide: —-Sulphadiazine	Free	Import of Sulfadiazine API with a CIF value of less than Rs. 1,774 per kg is ‘Restricted’ till 30.09.2026.
29359090	Sulphamethoxypyridarine, sulphamethiazole, sulphamoxole, sulphamide: —-Other	Free	Same as above.

2. Minimum Import Price (MIP) Condition

The notification introduces a Minimum Import Price (MIP) condition for Sulfadiazine API. Imports of Sulfadiazine API with a CIF (Cost, Insurance, and Freight) value below Rs. 1,774 per kg are now classified as ‘Restricted’ until 30th September 2026. This restriction is effective immediately.

3. Exemptions to MIP Condition 

The MIP condition will not apply to the following categories of importers:

Advance Authorization Holders: Entities importing inputs for manufacturing export products.
Export Oriented Units (EOUs): Units focused on producing goods for export.
Special Economic Zones (SEZs): Units operating within SEZs, provided the imported inputs are not sold in the Domestic Tariff Area (DTA).

These exemptions are subject to the condition that the imported Sulfadiazine API is not diverted to the domestic market.

Effect of the Notification 

The notification aims to regulate the import of Sulfadiazine API to ensure fair trade practices and maintain quality standards. The key effects are as follows:

Restriction on Low-CIF Imports: Imports of Sulfadiazine API with a CIF value below Rs. 1,774 per kg are restricted until 30th September 2026.
Exemptions for Specific Importers: Advance Authorization holders, EOUs, and SEZ units are exempted from the MIP condition, provided the imported inputs are not sold in the domestic market.

Implications for Stakeholders

Importers: Importers dealing with Sulfadiazine API must ensure compliance with the revised policy conditions. Imports below the specified CIF value will require additional approvals due to the ‘Restricted’ classification.
Advance Authorization Holders, EOUs, and SEZ Units: These entities can continue importing Sulfadiazine API without being subject to the MIP condition, provided they adhere to the stipulated conditions.
Domestic Manufacturers: The restriction on low-CIF imports may provide a level playing field for domestic manufacturers of Sulfadiazine API, potentially boosting local production.

Conclusion

The amendment in the import policy for Sulfadiazine API reflects the government’s commitment to regulating imports and ensuring fair trade practices. Stakeholders are advised to carefully review the notification and align their import practices with the revised policy framework.

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Source: DGFT

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