Import Policy Amendment – Synthetic Knitted Fabrics (Chapter 60, ITC HS 2022)

The Directorate General of Foreign Trade (DGFT), exercising powers under Sections 3 and 5 of the Foreign Trade (Development & Regulation) Act, 1992, along with provisions under the Foreign Trade Policy (FTP) 2023, has issued an amendment to the import policy for certain synthetic knitted fabrics falling under Chapter 60 of ITC (HS), 2022.

Background:

Earlier notifications — No. 77/2023 dated 16th March 2024, No. 33/2024-25 dated 1st October 2024, and No. 49/2024-25 dated 4th January 2025 — introduced the concept of Minimum Import Price (MIP) to regulate the import of synthetic knitted fabrics. This step has now been consolidated with a fresh notification imposing MIP till 31st March 2026.

Key Highlights of the Amendment:

• Imports under the mentioned ITC (HS) Codes are now Restricted.

• However, imports are deemed Free if the CIF (Cost, Insurance, and Freight) value is USD 3.5 or more per Kilogram.

• Exemptions are allowed for Advance Authorisation holders, Export Oriented Units (EOUs), and SEZ units, provided inputs are not sold in the Domestic Tariff Area (DTA).

Table:

Exemptions:

The Minimum Import Price condition shall not apply to the above items when imported by:

• Advance Authorisation Holders

• Export Oriented Units (EOUs)

• Units located in Special Economic Zones (SEZs)

Condition: These imports must not be sold in the Domestic Tariff Area (DTA).

Effect of the Notification:

The Central Government aims to protect the domestic textile industry from low-cost imports by ensuring that imports below the defined MIP threshold are regulated. At the same time, genuine exporters and production units under specific schemes continue to enjoy the flexibility for duty-free procurement.

 Notification Reference: DGFT
 Notification No. 05/2025-26
 23/04/2025