Imports – India Restricts Low-Priced Suspension-Grade PVC Resin Imports for Six Months
Imports –The Central Government has introduced a six-month restriction on the import of low-priced suspension-grade PVC resin by setting a minimum import price, a move aimed at regulating cheaper overseas shipments. The decision, announced by the Directorate General of Foreign Trade (DGFT), takes immediate effect while providing exemptions for export-focused manufacturing units and select government-backed export schemes.
Import Policy Revised With Immediate Effect
According to the notification issued by the Ministry of Commerce and Industry through the DGFT, the import policy for Suspension Grade PVC Resin (S-PVC) under ITC (HS) Code 39041020 has been changed from “Free” to “Restricted.” Under the revised framework, shipments with a Cost, Insurance and Freight (CIF) value above USD 0.766 per kilogram will continue to be imported without restrictions for the next six months.
However, imports priced at or below USD 0.766 per kilogram will fall under the restricted category during this period. The measure establishes a minimum import price threshold designed to regulate the entry of lower-priced consignments into the Indian market.
Export-Oriented Units Receive Exemption
The government has clarified that the new minimum import price requirement will not apply to certain categories of importers operating under export-linked schemes. These include 100 percent Export Oriented Units (EOUs), units located in Special Economic Zones (SEZs), and businesses importing raw materials under the Advance Authorisation Scheme.
The exemption is subject to a key condition that the imported material must be used for export production and should not be diverted or sold within the Domestic Tariff Area (DTA). This provision is intended to ensure that exporters continue to receive uninterrupted access to essential raw materials while maintaining restrictions on imports meant for the domestic market.
Notification Explains Scope of Restriction
The DGFT notification further states that the revised import condition will remain in force for six months from the date of publication. During this period, any import of suspension-grade PVC resin with a CIF value of USD 0.766 per kilogram or less will require compliance with the restricted import policy.
At the same time, eligible exporters operating under the specified schemes will continue to enjoy relief from the minimum import price requirement, provided they adhere to the prescribed conditions regarding the use of imported inputs.
Background of Earlier Trade Investigation
The latest policy decision follows an anti-dumping investigation previously conducted by the Directorate General of Trade Remedies (DGTR). The inquiry was launched after domestic manufacturers, including Chemplast Cuddalore Private Limited, DCM Shriram Limited, and DCW Limited, raised concerns over alleged dumping of suspension-grade PVC resin into India from seven countries.
In its final findings released in August 2025, the DGTR concluded that the imported products had entered the Indian market at unfairly low prices, resulting in price undercutting, downward pressure on domestic prices, and increased import penetration. The authority determined that these factors had caused material injury to domestic producers and recommended the imposition of anti-dumping duties for a period of five years.
No Direct Link Mentioned in Latest Order
Although the new import restriction comes after the DGTR’s investigation and recommendations, the latest DGFT notification does not directly associate the policy change with that anti-dumping case. The notification also does not mention the earlier findings as the basis for introducing the six-month restriction.
Instead, the order focuses solely on revising the import policy and defining the applicable minimum import price, exemptions, and operational conditions. The revised framework is expected to remain effective for six months unless the government issues further directions before the end of the specified period.