By Our Staff Reporter
MUMBAI, JAN. 06
The Director General of Foreign Trade (DGFT) has extended the imposition of Minimum Import Price (MIP) of US$ 3.50 per Kg on 13 specific HSN codes of synthetic knitted fabrics namely 60019200, 60041000 ,60049000, 60053600, 60053790 ,60053900 ,60062200 , 60064200 , 60063100, 60063200, 60063300, 60063400 and 60069000.
DGFT vide its notification no. 49/24-25 dt. 04.01.2025, imposed a minimum import price (MIP) of USD 3.50 per Kg on the above-cited 13 HS codes of synthetic knitted fabrics, effective from 01st Jan’25 upto 31st Mar’ 25 with the exemption granted for imports by advance authorisation holders, EOUs & SEZs, subject to condition that for imported inputs are not sold into DTA.
Responding to the above notification, Mr. Sidharth Khanna, President of Northern India Textile Mills Association (NITMA), noted that despite the governments’ commendable and relentless efforts to curb these under-priced imports, the import quantities have taken a huge surge according to the latest data (upto Oct’24), clearly indicating that under-invoicing and other illicit practices are still prevalent to circumvent these measures.
After analysing the most recent import data up to October 2024, it has been observed that the total quantity of imports under Chapter 60 has actually increased substantially, rather than decreased, after the implementation of the Minimum Import Price (MIP), he informed
The import figures have been staggeringly rising, as shown below:
Jan-March24 89 Million kgs
Apr-Jun 24 81 Million kgs
July-Sept 24 Million kgs
Furthermore, NITMA President said that the latest import data shows a surge in three more HS codes, apart from the 13 HS codes under MIP. A table below shows the substantial rise ,in the average monthly imports for these 3 HS codes, from 1.31 Mn Kgs (during Apr-Jun’23) to 7.52 Mn Kgs in Oct’24 reflecting the mammoth hike of 600%.
This indicates that importers are circumventing HS codes, rendering our current method of implementing Minimum Import Prices (MIP) on specific HS codes ineffective. The data for November and December will reveal which new HS codes importers are utilizing. As we await this information, the industry is experiencing significant and irreversible harm.
While applauding government’s recent decision to extend the MIP on 13 specific HS Codes of synthetic knitted fabrics upto 31.03.2025 . A request , along with the data, has been sent to the concerned ministries to: A. Widen the scope of MIP of USD 3.50/ Kg on All HS codes falling under Chapter 60 AND B.
To include this provision in the budget to avoid the need for multiple notifications at frequent intervals. In view of the above scenario, Mr. Khanna appealed to the concerned ministries to consider the afore-mentioned submissions and urged the domestic industry to remain vigilant by closely monitoring imports of synthetic knitted fabrics not only under chapter 60, but also beyond.
(Source: Tecoya Trend)