In order to address and prevent the under-invoiced imports of synthetic knitted fabric (under Chapter 60) and the misdeclaration of HS codes at Indian ports, the Northern India Textile Mills’ Association (NITMA) has appealed to Prime Minister Narendra Modi for his involvement.
The list of importers affecting these cheap materials, who are evading HS codes to import the fabric at a price of about US $ 1 per kg although the genuine pricing ranges between US $ 4-6/Kg internationally, was part of the request made by NITMA President Sidharth Khanna.
It is important to note that the government extended the Minimum Import Price (MIP) of US $ 3.50 per kilogramme for 13 particular HSN codes of synthetic knitted textiles earlier this month, until 31st March 2025.
While praising the Ministry of Textiles and the Ministry of Commerce & Industry for enforcing a Minimum Import Price (MIP) until 31st March 2025, Khanna also noted that, in spite of the government’s efforts to stop these cheap imports, import volumes have been rising rather than falling, rising from 89 million kg in January-March 2024 to 130 million kg in July-September 2024.
This increase suggests that importers have moved their imports to other Non-MIP HS codes under chapter 60 since the introduction of Minimum Import Prices (MIP). The present approach to implementing MIP on particular HS codes is no longer effective as a result of this change.
He added that the textile industry is suffering greatly as a result of these under-invoiced imports, which is leading to the closure of the knitting, spinning, and dying sectors. As a result of avoiding both direct and indirect taxes, the exchequer has lost more than US $ 1.16 billion (Rs. 10,000 crore). Oddly, logistics firms are the biggest importers of synthetic knitted fabrics, with Nandiambakkam Sez (Chennai) accounting for the majority of imports.
He has urged the Prime Minister to step in and start a thorough inquiry campaign into the cases of mis-declaration of HS codes at Indian ports and under-invoiced imports of synthetic knitted fabric (under Chapter 60).
