The Department of Commerce has announced an extension of the Minimum Import Price (MIP) for five categories of knitted fabrics until December 31, 2024, and has also included eight additional categories in an effort to regulate fabric imports. According to a notification issued on October 1, 2024, synthetic, manmade fiber, and cotton knitted fabrics falling under 13 Harmonized System (HS) codes are now subject to this import regulation. Imports will be permitted without restrictions if the value of the fabric is $3.5 per kilogram or more.
The MIP was initially introduced earlier this year for select categories of knitted fabrics. The extension to December 31 applies to the five previously covered categories, with the addition of eight more categories based on feedback from trade and industry representatives. This measure aims to reduce the influx of lower-priced imports, particularly from specific countries.
The Tiruppur Exporters’ Association has expressed support for the extension, while the Indian Texpreneurs Federation noted that the MIP has successfully decreased imports in the knitted fabrics sector. For instance, imports valued at $30 million in February for the fabrics under the five HS codes fell to $17 million by July.
However, imports for certain other HS codes saw an increase from $30 million to $57 million during the same period. By extending the MIP to include a wider range of fabrics, the government aims to further regulate imports and support domestic manufacturing capacity.
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