Indian Import Policy Amendment for Penicillin APIs by DGFT

Notification No.: 56/2025-26
Date: 29 January 2026
Issued by: Directorate General of Foreign Trade (DGFT)
Effective: Immediately (valid for one year)

The Directorate General of Foreign Trade (DGFT) has issued Notification No. 56/2025-26, amending the import policy and policy conditions for certain Penicillin-based pharmaceutical inputs under Chapter 29 of ITC (HS) 2022, Schedule-I (Import Policy).

The amendment introduces Minimum Import Price -MIP - linked restrictions while keeping the overall import policy as “Free”, subject to specified conditions.

What has changed -

Although the import policy remains “Free”, DGFT has effectively restricted low-priced imports by introducing Minimum Import Prices (MIP).

If CIF value is below the MIP:

• Import becomes Restricted

• DGFT authorisation is required

• Clearance may be denied without proper approval

Who Is exempted from MIP restrictions?

The following categories are exempt from the Minimum Import Price restriction, provided strict conditions are met:

100% Export Oriented Units (EOUs)
Units located in Special Economic Zones (SEZs)
Imports under Advance authorisation Scheme

This move is widely seen to:

• Protecting domestic API manufacturers

• Preventing dumping of under-priced pharmaceutical inputs

• Strengthening India’s pharma supply chain resilience

• Ensuring quality and regulatory oversight in sensitive drug imports

• 
  

What Importers should do now

1. Review CIF pricing in existing and future contracts

2. Re-check HS code classification carefully

3. Ensure eligibility if importing under EOU / SEZ / Advance Authorisation

4. Maintain strict DTA-non-sale compliance records

5. Consult DGFT / Customs experts before filing Bills of Entry below MIP thresholds