DGFT Amends Import Policy for Sulfadiazine API (Chapter 29).

The Directorate General of Foreign Trade (DGFT) has issued an important update concerning the import of Sulphadiazine API and related compounds under Chapter 29 of ITC (HS), 2022, Schedule – I (Import Policy). This amendment, effective immediately, introduces a Minimum Import Price (MIP) restriction to regulate imports and ensure fair trade practices.

Key Highlights 

1. Affected HS Codes and Items

2. Applicability of MIP

• The restriction applies immediately for imports below ₹1,774 per kg (CIF).
• The MIP condition is designed to control undervalued imports and maintain domestic pricing stability.

3. Exemptions

        The MIP restriction does not apply to imports by:

• Advance Authorization holders
• Export Oriented Units (EOUs)
• Special Economic Zone (SEZ) units

Condition: The imported inputs must not be sold in the Domestic Tariff Area (DTA).

4. Effective Date

• The revised import policy is effective immediately.
• The restriction on low-value Sulphadiazine imports remains valid until 30th September 2026.

Impact of the Notification:

This DGFT notification ensures that:

• Sulphadiazine API imports below ₹1,774/kg CIF are restricted, protecting domestic industry from undervalued imports.
• Export-focused units and SEZs continue to import without restriction, supporting global trade and manufacturing for export purposes.

Conclusion:

Importers and stakeholders should review their import planning and pricing strategy in light of the MIP condition. Export-oriented units, EOUs, and SEZs should ensure compliance with the DTA restriction while continuing their imports.

Notification Reference: DGFT
Notification No. 41/2025-26
10 /10 /2025