The city of Ludhiana
The serious problem of under-invoiced imports of textiles has been brought to light by the Northern India Textile Mills’ Association (NITMA). woven synthetic materials that are harming the domestic textile industry irreparably. In an effort to solve the problem and prohibit the under-invoiced imports of synthetic knitted fabric (under Chapter 60) and the misdeclaration of HS codes at Indian ports, NITMA has respectfully appealed to Prime Minister Shri Narendra Modi Ji today.
NITMA President Mr. Sidharth Khanna’s petition included a list of importers who are causing these cheap textiles by evading HS codes and bringing the cloth in at about $1 per kilogramme, while the real costs between $4 and $6 per kilogramme worldwide.
It is important to note that the government extended the Minimum Import Price (MIP) of US$ 3.50 per kg for 13 particular HSN codes of synthetic knitted textiles earlier this month, until March 31, 2025.
While sincerely praising the Ministry of Textiles and the Ministry of Commerce & Industry for enforcing a Minimum Import Price (MIP) through March 31, 2025, Mr. Khanna also pointed out that, in spite of the governments’ admirable and persistent efforts to stop these cheap imports, import volumes have been rising significantly rather than falling. which the following figures show.
Jan – Mar 2024 : 89 Mn kgs Apr – Jun 2024 : 81 Mn kgs July – Sept 2024 : 130 Mn kgs
The aforementioned data unequivocally shows that importers have switched to alternative Non-MIP HS codes within chapter 60 after 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 said 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 INR 10,000 crore. Oddly, logistics firms are the main importers of synthetic knitted materials. with Nandiambakkam Sez (Chennai) being the source of most imports.
Finally, Mr. Khanna respectfully urged the Honourable Prime Minister to step in and start a thorough investigation campaign into these cases of mis-declaration of HS codes at Indian ports and under-invoiced imports of synthetic knitted fabric (under Chapter 60). It is imperative that importers receive a clear message. who have openly disregarded trade laws, compromising the integrity of the Indian trading system. Their acts undermine market trust in addition to jeopardising fair competition.