Amendment in Import Policy of Suspension Grade PVC Resin (S-PVC)

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Dated: 25.07.2026

Amendment in Import Policy of Suspension Grade PVC Resin (S-PVC)

The Government of India has recently announced a significant amendment to the import policy for Suspension grade PVC resin (S-PVC), a key raw material in the plastics and manufacturing industries. This change, notified by the Directorate General of Foreign Trade (DGFT) under Notification No. 25/2026-27, introduces new restrictions and conditions for the import of S-PVC under ITC (HS) code 39041020. Here’s a detailed breakdown of what this means for importers, exporters, and industry stakeholders.

Background: What is Suspension Grade PVC Resin?

Suspension grade PVC resin (S-PVC) is a widely used thermoplastic polymer, essential for manufacturing pipes, cables, packaging materials, and various consumer goods. Its import policy directly impacts the cost structure and supply chain of several industries in India.

Key Changes in the Import Policy

The amendment brings the following major changes:

Change in Import Status
- Previous Policy: The import of S-PVC was classified as “Free,” meaning no restrictions were imposed.
- Revised Policy: The import status is now “Restricted” for S-PVC with a CIF (Cost, Insurance, and Freight) value less than or equal to USD 0.766 per kilogram.
Conditional Free Import
- Imports of S-PVC with a CIF value greater than USD 0.766 per kilogram remain “Free” for a period of six months from the date of notification (24 July 2026).
Exemptions for Special Units
- The minimum import price restriction does not apply to:
  - 100% Export Oriented Units (EOUs)
  - Units in Special Economic Zones (SEZs)
  - Imports under the Advance Authorisation Scheme
- Condition: These exemptions are valid only if the imported S-PVC is not sold into the Domestic Tariff Area (DTA).

Implications for Stakeholders

For Importers

Restricted Imports: Importers must ensure that S-PVC shipments with CIF value at or below USD 0.766/kg comply with the new “Restricted” status, which may require additional licenses or permissions.
Temporary Relief: Higher-value imports (above USD 0.766/kg) can continue freely for six months, allowing time to adjust procurement strategies.

For Export-Oriented and SEZ Units

Continued Access: EOUs, SEZ units, and those importing under Advance Authorisation can continue importing S-PVC without the minimum price restriction, provided the material is not diverted to the domestic market.

For Domestic Industry

Market Impact: The restriction aims to curb low-priced imports, potentially supporting domestic producers by reducing undercutting from cheaper foreign suppliers.

Compliance Checklist

Review CIF Values: Ensure all import consignments of S-PVC are evaluated for their CIF value per kilogram.
Obtain Necessary Permissions: For restricted imports, apply for the required licenses from DGFT.
Monitor Six-Month Window: Track the six-month period for free imports above the minimum price threshold.
Segregate Imports for EOUs/SEZs: Maintain clear documentation to prove that imports under exemption schemes are not sold in the DTA.

Conclusion

This amendment reflects the government’s intent to balance the interests of domestic manufacturers with those of importers and exporters. Stakeholders should promptly review their import strategies and ensure compliance with the new policy to avoid disruptions.

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Source: DGFT

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