DGFT Extends Minimum Import Price on Virgin Multi-Layer Paper Board to 31 March 2027

The Directorate General of Foreign Trade (DGFT) has extended the minimum import price (MIP) on virgin multi-layer paper board to 31 March 2027. Through Notification No. 38/2026-27 dated 30 September 2026, imports of specified paper board at a landed value below ₹67,220 per metric tonne (CIF) remain "restricted" — meaning they are not freely importable and require a licence. If you import packaging board, or buy it to convert into cartons, cups and folding boxes, this keeps a firm floor under your landed cost for another six months.

What Happened

DGFT amended the import policy condition for virgin multi-layer paper board, continuing an MIP that was due to lapse. In plain terms:

• The MIP is set at ₹67,220 per MT on the CIF (Cost, Insurance and Freight) value.
• It applies to five tariff lines — ITC(HS) 48059100, 48059200, 48059300, 48109200 and 48109900.
• Import policy stays "Free" where the CIF value is at or above the MIP, and "Restricted" where it falls below the floor. A restricted import needs an import authorisation from DGFT.
• The condition is now valid up to 31 March 2027.

The price floor itself is unchanged; this notification is about continuity, not a new rate.

Why the MIP Exists

An MIP is a policy tool that blocks abnormally cheap imports by refusing them "free" status below a set value. India first imposed the paper board MIP in 2025 after domestic mills flagged low-priced consignments undercutting locally produced board. Rather than a conventional anti-dumping duty, the MIP works through the import-policy status itself: price your shipment above the floor and it clears freely; price it below and it is restricted. The government has repeatedly rolled the condition forward while it monitors import trends, and this extension continues that pattern.

Who's Affected

Importers of virgin multi-layer board — widely used for food and beverage packaging, liquid cartons, cups and premium cartons — are directly affected, as are converters and FMCG brand owners who source board through importers. Where imported board is a key input, the MIP effectively sets a minimum procurement cost.

Advance Authorisation holders, Export-Oriented Units (EOUs) and SEZ units are typically kept outside such MIP conditions where the board is imported for export production, but this is not automatic — confirm your eligibility against the exact wording of the notification and your scheme conditions before assuming an exemption.

How the MIP Works at Clearance

At the bill-of-entry stage, Customs compares the declared CIF value of the covered board against the ₹67,220/MT floor. If the declared value meets or exceeds the floor, the goods clear under the "Free" policy. If it is below, the consignment cannot be cleared as a free import; the importer must either hold a valid authorisation for restricted goods or face detention and reassessment. The MIP applies regardless of the actual invoice or contract price, so a genuinely low-priced purchase still has to be assessed against the floor.

What Importers Should Do Now

• Check whether the board you import falls under any of the five covered ITC(HS) codes — classification, not product description, decides applicability.
• Re-price purchase contracts so the CIF value is at or above ₹67,220/MT, or arrange an import authorisation before the goods arrive.
• Confirm whether your Advance Authorisation, EOU or SEZ status gives a valid exemption for the intended use.
• Brief your customs house agent so bills of entry are filed with values assessed against the MIP, avoiding demurrage from avoidable queries.
• Diarise 31 March 2027 and watch for a further extension, withdrawal or rate change before planning Q1 2027 shipments.

The Bigger Picture

The extension signals continued government protection for the domestic paper and paperboard sector, which has pressed for shielding against low-cost imports. For buyers, it is one more reason to firm up domestic sourcing options and to build the MIP floor into landed-cost models rather than treating cheap import quotes at face value. It also sits alongside a wider tightening of standards and import conditions on paper and allied products, so procurement teams should expect continued scrutiny.

Frequently Asked Questions

Does the MIP apply to every type of paper board? No. It applies only to virgin multi-layer paper board under the five specified ITC(HS) codes. Other paper and board grades are governed by their own policy conditions.

What happens if my CIF value is below ₹67,220/MT? The import is treated as "restricted" and cannot be cleared as a free import. You would need a valid import authorisation; otherwise the consignment risks detention and reassessment.

Are Advance Authorisation, EOU and SEZ imports exempt? They are typically kept outside such MIP conditions where the board is used for export production, but this depends on the exact notification wording and your scheme conditions. Verify before relying on it.

When does this expire? The condition is valid to 31 March 2027 unless DGFT extends, amends or withdraws it earlier.

Conclusion

Nothing changes operationally except the clock: the ₹67,220/MT floor on virgin multi-layer paper board now runs to 31 March 2027. Importers and converters should keep landed values above the floor, confirm any scheme exemptions, and plan procurement with the MIP firmly in their cost models.

This article is for general guidance only. Verify the exact scope, value and conditions against DGFT Notification No. 38/2026-27 and the live ITC(HS) import policy on the DGFT portal (dgft.gov.in) before acting.