DGFT Restricts Import of Suspension Grade PVC Resin
DGFT Restricts Import of Suspension Grade PVC Resin Below USD 0.766/kg for Six Months
The Directorate General of Foreign Trade (DGFT) has amended the import policy for Suspension Grade Polyvinyl Chloride (S-PVC) Resin under ITC (HS) Code 39041020. The revised policy introduces a Minimum Import Price (MIP) mechanism and will remain effective for six months from the date of publication of the notification.
Key Change in Import Policy: Earlier, the import of Suspension Grade PVC Resin was permitted under the “Free” import category. Under the revised notification, imports have become “Restricted” if the Cost, Insurance and Freight (CIF) value is USD 0.766 per kilogram or less.
Imports with a CIF value exceeding USD 0.766 per kilogram will continue to be allowed under the Free import policy during the six-month period.
Applicability of the Restriction: The revised import policy applies only to Suspension Grade PVC Resin classified under ITC (HS) Code 39041020.
The restriction is intended to regulate imports of lower-priced S-PVC resin while allowing imports above the prescribed minimum value without additional restrictions.
Exemptions: The Minimum Import Price requirement will not apply to imports made by:
- 100% Export Oriented Units (EOUs);
- Units operating in Special Economic Zones (SEZs); and
- Imports made under the Advance Authorisation Scheme.
These exemptions are available only if the imported S-PVC resin is not diverted or sold in the Domestic Tariff Area (DTA).
Effective Date: The revised import policy has come into force with immediate effect and will remain applicable for six months from the date of publication of the notification.
Impact on Importers
Importers dealing in Suspension Grade PVC Resin should carefully verify the CIF value of their consignments before import. Shipments valued at USD 0.766 per kilogram or below will fall under the Restricted category unless covered by one of the specified exemptions. Businesses should also ensure compliance with the conditions applicable to EOUs, SEZ units, and Advance Authorisation holders to avoid any policy violations.
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