India tightens control on low-priced S-PVC imports with six-month restriction

India has introduced new import restrictions on Suspension Grade PVC (S-PVC), strengthening safeguards for domestic manufacturers just days after restoring the 7.5% Basic Customs Duty (BCD) on polymer imports. Under DGFT Notification No. 25/2026-27, effective July 24, imports of S-PVC with a CIF value of USD 0.766/kg ($766/ton) or below have been moved from the "Free" category to "Restricted" for a period of six months.

The new measure does not replace the existing customs duty but acts as an additional trade control. While the reinstated 7.5% BCD continues to apply, the latest notification places further restrictions on low-priced imports by requiring import authorization for cargoes priced at or below the specified threshold. Shipments valued above USD 766/ton will continue to be imported freely under the current tariff structure.

According to the notification, the revised policy applies to Suspension Grade PVC Resin under HS Code 39041020. However, the restriction will not apply to imports made by Export Oriented Units (EOUs), Special Economic Zones (SEZs), or under the Advance Authorization Scheme, provided the imported material is not diverted into India's Domestic Tariff Area (DTA).

The policy is expected to have the greatest impact on competitively priced import cargoes that regularly enter India from major exporting countries. Market participants believe the move could reduce the availability of lower-priced material, increase procurement lead times for affected shipments, and strengthen the pricing position of domestic producers if imports below the threshold decline.

Second protective measure within weeks

The latest restriction comes shortly after India allowed the temporary zero-duty window on PVC and other polymer imports to expire on July 15, resulting in the reinstatement of the standard 7.5% Basic Customs Duty. By combining the restored import duty with a minimum import value threshold, the government has introduced a second layer of protection aimed at supporting the domestic PVC industry while discouraging the inflow of aggressively priced imported material.

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