DGFT Extends Minimum Import Price on ATS-8 and Sulfadiazine APIs to 30 November 2026

What changed: The Directorate General of Foreign Trade (DGFT) has extended the minimum import price (MIP) condition on two active pharmaceutical ingredients (APIs) through 30 November 2026. By Notification No. 39/2026-27, imports of ATS-8 below USD 111 per kg remain restricted; by Notification No. 40/2026-27, imports of Sulfadiazine below ₹1,774 per kg remain restricted. Both notifications were issued on 30 September 2026, the date the previous MIP windows were due to lapse, and both sit under Chapter 29 of ITC(HS) 2022, Schedule-I (Import Policy). Importers of these two APIs, and the formulators who buy them, are directly affected.

What Happened

Two DGFT notifications issued on 30 September 2026 continued existing MIP floors rather than letting them expire:

• ATS-8 — Notification No. 39/2026-27 keeps the import of ATS-8 below USD 111/kg (CIF) in the "restricted" category.
• Sulfadiazine — Notification No. 40/2026-27 keeps the import of Sulfadiazine API below ₹1,774/kg (CIF) in the "restricted" category, extending the condition first imposed via Notification No. 41/2025-26 dated 10 October 2025.

In both cases the extension runs up to 30 November 2026, with all other terms and conditions of the earlier notifications unchanged. An import at or above the MIP remains "free"; an import below it is "restricted" and needs a licence.

Why / Background

A minimum import price is a trade-defence-style tool: it does not ban imports, but it sets a price floor below which a consignment cannot be imported freely. Governments use MIPs on specific APIs to guard domestic producers against very low-priced imports while keeping supply open at or above the benchmark. Extending both floors to 30 November 2026 keeps that protection in place for another two months and signals the measures are under active review rather than being wound down.

Who's Affected

Importers and traders of ATS-8 and Sulfadiazine API are directly affected, as are pharmaceutical formulators who rely on imported quantities of these inputs. Based on the structure of earlier MIP notifications on these items, Advance Authorisation holders, Export Oriented Units (EOUs) and SEZ units have generally been exempt (subject to not diverting to the Domestic Tariff Area) — importers should confirm the exemption wording in the current notifications before relying on it.

Key Operational Details

• Benchmark basis: the MIP is applied on CIF value per kg.
• Policy effect: below MIP = "restricted" (licence required); at/above MIP = "free".
• Validity: extended up to 30 November 2026.
• Classification: both items fall under ITC(HS) Chapter 29 (organic chemicals); confirm the exact 8-digit tariff line for your consignment.
• Exemptions: check the notification text for AA / EOU / SEZ carve-outs before import planning.

What Importers Should Do Now

• Reprice contracts for ATS-8 and Sulfadiazine so declared CIF values are at or above the respective floors (USD 111/kg and ₹1,774/kg) for consignments cleared up to 30 November 2026.
• Review any below-MIP orders already in transit or under negotiation — these may require a restricted-import licence.
• Confirm your exemption status if you import under Advance Authorisation, as an EOU or as an SEZ unit, and keep documentation ready.
• Diarise 30 November 2026 and watch for a further extension or lapse, so sourcing decisions for December are not caught out.

What CHAs and Forwarders Should Do Now

• Flag ATS-8 and Sulfadiazine lines at the bill-of-entry stage and check declared unit values against the MIP to avoid clearance holds.
• Advise importer clients proactively where invoice values fall below the floor.

The Bigger Picture

Short, rolling MIP extensions on individual APIs are now a recurring feature of India's import policy on bulk drugs, reflecting an effort to balance domestic API manufacturing against formulators' need for affordable inputs. For importers, the practical lesson is that these floors rarely disappear overnight — they tend to be extended in two- or three-month increments — so sourcing plans should assume the floor stays in place until a notification says otherwise.

Frequently Asked Questions

Q: Can I still import ATS-8 or Sulfadiazine below the MIP? A: Only under a restricted-import licence. At or above the floor, import remains free.

Q: Until when do these floors apply? A: Up to 30 November 2026, unless extended again.

Q: Are Advance Authorisation / EOU / SEZ imports exempt? A: Earlier MIP notifications on these items carried such exemptions. Confirm the exact wording in Notifications 39 and 40/2026-27 before relying on an exemption.

Q: Does the MIP change my customs duty? A: No. The MIP is a policy condition on whether the import is "free" or "restricted"; customs duty is assessed separately.

Conclusion

Both API price floors live on to 30 November 2026 — USD 111/kg for ATS-8 and ₹1,774/kg for Sulfadiazine. Importers should make sure declared CIF values clear the floor, verify any AA/EOU/SEZ exemption, and watch for the next extension.

This summary is for general guidance only. Verify reference numbers, values and exemptions against the official DGFT notifications at dgft.gov.in before acting.