Introduction: The Ministry of Commerce and Industry, through the Directorate General of Foreign Trade (DGFT), has issued Notification No. 77/2023, dated 16th March 2024, regarding the imposition of a Minimum Import Price on Synthetic Knitted Fabrics. This article delves into the specifics of this notification, its implications on trade, and the timeline of enforcement.
Detailed Analysis: The notification, under the authority of the FT (D&R) Act, 1992, amends the Import Policy and Import Policy Condition of specific ITC(HS) Codes related to Synthetic Knitted Fabrics until 15th September 2024. It introduces a Minimum Import Price of US Dollar 3.50 per Kilogram on certain categories of synthetic knitted fabrics. The affected ITC(HS) Codes include those pertaining to unbleached or bleached, dyed, yarns of different colors, printed, and other synthetic knitted fabrics.
This measure is aimed at regulating the import of synthetic knitted fabrics into the country and protecting domestic manufacturers from unfair competition. By setting a minimum price threshold, the government intends to ensure that imports are not undervalued, thereby safeguarding the interests of local producers.
However, it’s noteworthy that imports will be permitted free of restrictions if the CIF (Cost, Insurance, and Freight) value exceeds US Dollar 3.50 per Kilogram. This provision aims to balance the need for regulation with the facilitation of legitimate trade activities.
The notification also clarifies that the existing ‘Free’ Import Policy will resume from 16th September 2024, unless modified by subsequent notifications. This indicates a temporary nature to the imposition of the Minimum Import Price, subject to review and alteration based on evolving circumstances and trade dynamics.
Conclusion: In conclusion, DGFT Notification No. 77/2023 introduces significant changes to the import policy concerning synthetic knitted fabrics. The imposition of a Minimum Import Price reflects the government’s proactive stance towards promoting fair trade practices and supporting domestic industries. However, the effectiveness of this measure and its impact on stakeholders will require continuous monitoring and assessment. As the policy landscape evolves, stakeholders should stay abreast of updates and adapt their strategies accordingly to navigate the dynamic trade environment.
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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
Notification No. 77/2023-DGFT | Dated: 16th March, 2024
Subject: Imposition of Minimum Import Price on Synthetic Knitted Fabrics up to 15th September 2024 –reg.
S.O. 1435(E).—In exercise of powers conferred by Section 3 read with Section 5 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2023, as amended from time to time, the Central Government hereby revises the Import Policy and Import Policy Condition of the following ITC(HS) Codes under Chapter 60 of ITC (HS) 2022, Schedule–I(Import Policy), for the period up to 15th September 2024 as under:\
|
ITC(HS) Code |
Item Description | Import Policy | Revised Import Policy | Existing Policy condition | Revised Policy condition |
| 60063100 | -Of synthetic fibres : — Unbleached or bleached |
Free | Prohibited | – | However, import is ‘Free’ if CIF value is 3.5 US Dollar and above per Kilogram |
| 60063200 | -Of synthetic fibres : — Dyed |
Free | Prohibited | – | However, import is ‘Free’ if CIF value is 3.5 US Dollar and above per Kilogram |
| 60063300 | -Of synthetic fibres : — Of yarns of different colours | Free | Prohibited | – | However, import is ‘Free’ if CIF value is 3.5 US Dollar and above per Kilogram |
| 60063400 | -Of synthetic fibres : — Printed |
Free | Prohibited | – | However, import is ‘Free’ if CIF value is 3.5 US Dollar and above per Kilogram |
| 60069000 | — Other | Free | Prohibited | – | However, import is ‘Free’ if CIF value is 3.5 US Dollar and above per Kilogram |
2. The existing ‘Free’ Import Policy, as it stands prior to the issuance of this Notification, shall be in effect starting from 16th September 2024, unless expressly amended by subsequent notification.
Effect of the Notification: Minimum Import Price of US Dollar 3.50 per Kilogram is imposed on (5) specific Synthetic Knitted Fabric ITC(HS) Codes for the period up to 15th September 2024. The existing ‘Free’ Import Policy, as it stands prior to the issuance of this Notification, shall be in effect starting from 16th September 2024, unless expressly amended by subsequent notification.
This is issued with the approval of Minister of Commerce & Industry.
[F. No. 01/89/180/Misc-39/AM-05/PC-2[A]/E-1425]
SANTOSH KUMAR SARANGI,
Director General of Foreign Trade & Ex- officio Addl. Secy.
kindly enlighten readers about source of information from which aim or purpose of notification is ascertained and mentioned in the article under heading detailed analysis.