Govt Sets Minimum Price For Imported Synthetic Fabrics For 6 Months
In a bid to regulate imports and protect domestic manufacturers, the Central government has announced the imposition of a minimum import price on certain categories of synthetic knitted fabrics. The decision, made under the Foreign Trade (Development & Regulation) Act, 1992, and in accordance with the Foreign Trade Policy, 2023, aims to ensure a level playing field for indigenous producers.
Effective immediately, the import policy and conditions for specific ITC (HS) codes under Chapter 60 of the ITC (HS) 2022 have been revised. The following HS codes fall under the purview of the new regulations:
- 60063100: Of synthetic fibre, unbleached or bleached
- 60063200: Of synthetic fibre, dyed
- 60063300: Of synthetic fibre, yarn of different colors
- 60063400: Of synthetic fibre, printed
- 60069000: Other
Importation of these categories of synthetic knitted fabrics is now prohibited unless the CIF (Cost, Insurance, and Freight) value is US$ 3.50 per Kg or above. This move aims to curb the influx of low-cost imports and safeguard the interests of domestic manufacturers.
The existing “Free” import policy, which was in place prior to this notification, will resume on September 16, 2024, unless expressly amended by subsequent notifications.
The imposition of a minimum import price is expected to have a significant impact on the textile industry, particularly on manufacturers and traders involved in the import and sale of synthetic knitted fabrics. Industry experts anticipate adjustments in pricing strategies and sourcing patterns in response to the new regulations.
The government’s decision reflects its commitment to bolstering domestic production capabilities and fostering a conducive environment for indigenous industries to thrive. It also underscores the importance of trade policies in safeguarding the interests of domestic stakeholders while promoting sustainable economic growth.
