India to test imported synthetic knitted fabrics post MIP imposition

21 Mar '24

2 min read

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Indian Department of Customs has mandated testing for imported knitted fabrics following the imposition of a $3.50 per kg minimum import price on certain HS codes.
This action addresses industry concerns about potential HS code manipulation to bypass import restrictions.
It aims to prevent misdeclaration and ensure compliance with import policies.

The Indian Department of Customs has mandated the testing of synthetic knitted fabrics imported from other countries following the imposition of a minimum import price (MIP) of $3.50 per kg on five specified HS codes of synthetic knitted fabric. This measure aims to alleviate industry concerns about potential manipulation of HS codes to circumvent policy restrictions.

The Commissioner of Customs (NS-III), based at Jawaharlal Nehru Custom House, Nhava Sheva, has issued a directive to subordinates regarding the compulsory testing of knitted fabrics to verify their composition and classification. Previously, The Directorate General of Foreign Trade (DGFT) had issued a notification imposing an MIP of $3.50 per kg on five specific HS codes of synthetic knitted fabrics, namely 60063100, 60063200, 60063300, 60063400, and 60069000. This notification took immediate effect and will remain in force until September 15, 2024.

However, there were industry concerns about the potential manipulation of HS codes in the import of synthetic knitted fabric to bypass the MIP provisions. To address these concerns, the department has introduced mandatory testing to determine the composition of the imported goods.

A letter from the Department of Customs, issued on Monday, stated that MIP has been imposed on five HS codes. Consequently, the import policy has been amended to prohibit the import of goods priced below $3.5 per kg (CIF). Chapter 60 covers knitted or crocheted fabrics and includes six headings for various fabric types in this category.

According to the department, CTH 6006, as a residual heading in Chapter 60, encompasses knitted or crocheted fabrics not covered under headings 6001 to 6005. Following the notification, there is a concern that importers might resort to misdeclaration of knitted fabric under different CTHs of Chapter 60, specifically 6001 to 6005 and other sub-headings of 6006, which include knitted fabrics of cotton or artificial fibres, to evade the import prohibition and MIP conditions. Proper classification can only be ascertained through testing based on specific parameters.

Fibre2Fashion News Desk (KUL)

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