According to the notification, DGFT has reimposed an MIP of $3.5 per kg on HSN codes 60019200, 60053600, 60053790, and 60053900 for synthetic knitted fabric. These codes cover products made from man-made or synthetic fibres (unbleached or bleached). Synthetic knitted fabrics attract a 20 per cent duty on their value. Following the imposition of the MIP, the duty will be based on the determined minimum import value or the actual import value (whichever is higher).
The MIP was initially imposed on March 16, 2024, and extended over time, ending on March 31, 2025. Industry sources stated that the latest notification caused a 22-day blackout period when the MIP was not effective, creating a strong possibility of significant imports of synthetic knitted fabrics during that time.
India has reimposed a minimum import price (MIP) of $3.5/kg on four HSN codes covering synthetic knitted fabrics, effective until March 31, 2026.
The move follows a 22-day gap in April that likely led to a surge in imports.
While nine other codes are now subject to a fixed ₹115/kg basic duty, over three dozen codes remain unrestricted, prompting concerns of diversion to avoid MIP and customs duties.
The import of synthetic knitted fabrics under ITC (HS) codes 60019200, 60053600, 60053790, and 60053900 is ‘restricted’ until March 31, 2026, according to the notification. However, imports are ‘free’ if the CIF value is $3.5 per kilogram or higher. Additionally, inputs imported by Advance Authorization holders, Export Oriented Units (EOUs), and units in Special Economic Zones (SEZs) will be exempt from the MIP condition.
It is worth noting that the MIP on synthetic knitted fabric under nine other codes (60041000, 60049000, 60062200, 60063100, 60063200, 60063300, 60063400, 60064200, and 60069000) ended on March 31, 2025. However, the government had imposed a fixed basic customs duty of ₹115 per kg in the Union Budget for FY 2025-26. This means that imports of synthetic knitted yarn under these codes will attract a duty of either 20 per cent or ₹115 per kg (whichever is higher). This change came into effect immediately following the government’s announcement on February 1, 2025.
However, more than three dozen codes for synthetic knitted fabrics remain unrestricted. Industry stakeholders are concerned that imports may be diverted under non-MIP and non-BCD codes. There are 55 codes under Chapter 60, of which 45 are active, according to industry sources.
Fibre2Fashion News Desk (KUL)
