Policy Circular No. 04/2025-26, Dated 03-09-2025
1. Introduction
The Directorate General of Foreign Trade (DGFT) has issued a notification clarifying the applicability of the Minimum Import Price (MIP) on imports of Virgin Multi-layer Paper Board (VPB). This move seeks to regulate import pricing, protect domestic manufacturers, and ensure fair competition in the Indian paper industry. The notification also specifies certain exemptions to balance trade facilitation with protective measures.
2. Applicability of Minimum Import Price
As per the notification, the MIP of INR 67,220 per MT on a Cost, Insurance, and Freight (CIF) basis shall apply to imports of VPB. This pricing restriction covers specific ITC (HS) Codes, namely 48059100, 48059200, 48059300, 48109200, and 48109900. The measure is effective immediately and will remain valid until 31st March 2026, ensuring stability and predictability in import regulations for the sector.
3. Exemptions for EOUs and SEZ Units
The notification provides relief for 100% Export Oriented Units (EOUs) and entities located in Special Economic Zones (SEZs). Imports of VPB by such units will not be subject to the MIP requirement, provided the goods are not diverted for sale in the Domestic Tariff Area (DTA). This exemption is intended to support export-driven manufacturing while safeguarding the domestic market from underpriced imports.
4. Exemptions under Export Promotion Schemes
In addition, the notification exempts imports made under Advance Authorization and Duty-Free Import Authorization (DFIA) schemes from the MIP restriction. These schemes are designed to facilitate cost-effective raw material procurement for export production. By allowing duty-free and MIP-free imports in such cases, the DGFT aims to maintain India’s export competitiveness while ensuring compliance with broader trade objectives.
5. Conclusion
The DGFT’s notification on the applicability of MIP for VPB strikes a balance between protecting domestic industry and supporting export-oriented growth. By enforcing a floor price on imports into the general domestic market while providing targeted exemptions for EOUs, SEZs, and export promotion schemes, the measure ensures both fairness and flexibility. This framework is expected to provide much-needed clarity and stability to stakeholders in the paper and packaging sectors until March 2026.
