DGFT Restricts Clear Float Glass Imports, Imposes ₹34,000 Minimum Import Price Threshold

The Central Government has significantly tightened the import regime for Clear Float Glass by reclassifying specific categories from 'Free' to 'Restricted' status. This move, aimed at regulating the entry of low-cost glass imports, mandates a minimum valuation threshold for importers seeking to maintain unrestricted access to the Indian market.

Background

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issued Notification No. 29/2026-27 on August 18, 2026, to modify the existing import policy conditions. The amendment was exercised under the powers conferred by Section 3 and Section 5 of the Foreign Trade (Development Regulation) Act, 1992, read alongside paragraphs 1.02 and 2.01 of the Foreign Trade Policy 2023. The notification specifically targets clear float glass (4 mm to 12 mm) classified under Chapter 70 of Schedule I (Import Policy) of the ITC (HS) 2022, which previously enjoyed a more liberalized entry into the country.

Key Provisions

The amendment introduces a selective restriction mechanism based on the Cost, Insurance, and Freight (CIF) value of the imported goods.

Policy Shift from 'Free' to 'Restricted'

The Import Policy for items falling under ITC (HS) Codes 70051090 (Other non-wired glass with an absorbent/reflecting layer) and 70052990 (Other non-wired glass) has been officially revised from 'Free' to 'Restricted'. This change applies specifically to Clear Float Glass within the 4 mm to 12 mm thickness range.

Introduction of Minimum Import Price (MIP)

Despite the 'Restricted' classification, the notification provides a carve-out for higher-value imports. Import remains 'Free' provided the CIF value is ₹34,000 or above per Metric Tonne (MT). If the value falls below this threshold, the restricted status applies, requiring additional regulatory permissions.

Conditional Exemptions for Export-Oriented Entities

The Minimum Import Price condition will not apply to imports made by Advance Authorisation holders, Export Oriented Units (EOUs), and units located in Special Economic Zones (SEZs). However, this exemption is strictly contingent on the condition that the imported inputs are not sold into the Domestic Tariff Area (DTA).

Stakeholders Impacted

The notification primarily affects commercial importers and distributors of clear float glass used in construction and industrial applications. It also directly impacts Advance Authorisation holders, EOUs, and SEZ units who must now ensure strict segregation of these imports to avoid prohibited DTA sales. Domestic glass manufacturers may find this move provides a protective buffer against low-value foreign competition, while compliance officers and customs house agents will need to adjust documentation checks to verify CIF values against the new ₹34,000 per MT benchmark.

Practical/Compliance Impact

Entities importing clear float glass within the 4 mm-12 mm range must now evaluate their procurement contracts against the ₹34,000 per MT threshold. If the CIF value is lower than this amount, the import will no longer be 'Free', and importers must comply with the licensing requirements associated with 'Restricted' items.

For SEZs and EOUs, the focus shifts to internal controls; while they are exempt from the MIP, any leakages or sales of these specific HS code items into the Domestic Tariff Area will constitute a violation of the revised policy conditions. The DGFT has clarified that the MIP condition is not a permanent fixture but is scheduled to remain applicable for a period of one year from the date of the notification's publication.

Effective Date

The notification was issued and became effective on August 18, 2026. The Minimum Import Price (MIP) condition specified in the document shall remain in force for exactly one year from the date of its publication in the Official Gazette.