FTP - Minimum Import Price (MIP) on Iron & Steel under Chapter 72 - DGFT Clarifies
THE Government had imposed Minimum Import Price (MIP) on Iron & Steel by Notification No. 38 dated 5.2.2016. Now, the DGFT clarifies:
1. Imports effected on or after 5.2.2016 below the USD unit value specified in the Notification will be restricted from entry into India.
2. Landed unit cost must not be below the specified MIP.
3. It is not possible to import items covered under Notification No. 38 (2015-2020) whose unit CIF import price is below the stipulated MIP by paying custom duty on the MIP specified in the Notification. The imported items must have a unit CIF value equal to or above the MIP.
4. the date of reckoning of "import" is decided with reference to date of shipment/dispatch of goods from supplying country as given in Para 9.11 of Handbook of Procedure; and not the date of arrival of goods at an Indian port. Accordingly, imports effected on 5.2.2016 and thereafter will be governed by the Notification No. 38 dated 5th February, 2016.
5. import shipments under letter of credit entered into before the date of the Notification shall be exempted from the Minimum Import Price condition subject to Para 1.05(b) of the Foreign Trade Policy 2015-20.
6. As per Para 1.05(b) of the Foreign Trade Policy 2015-20, for operationalising irrevocable letter of credit, the applicant/importer will have to register the Letter of Credit with jurisdictional Regional Authority (RA) against computerized receipt, within 15 days of the imposition of any such restriction or regulation.
DGFT Trade Notice No. 17/2016; Dated: February 10, 2016