DGFT imposes minimum import price on key antibiotic inputs: Penicillin G, Amoxicillin Trihydrate and 6-APA

The Directorate General of Foreign Trade has, through Notification No. 56/2025-26 dated 29 January 2026, brought in a significant change to the import regime for three critical pharmaceutical intermediates:

  • Penicillins and its salts
  • Amoxycilline and its salts
  • 6-APA

These products are classified under the following ITC (HS) Codes in Chapter 29 of ITC (HS) 2022, Schedule-I (Import Policy):

  • 29411010 – Penicillins and its salts
  • 29411030 – Amoxycilline and its salts
  • 29411050 – 6-APA

The Central Government has exercised its powers under Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, along with paragraph 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2023, to revise the import policy conditions applicable to these items.

Although the basic import policy classification continues to remain “Free”, the notification introduces a Minimum Import Price (MIP)–based restriction, effectively changing the treatment of low-priced imports falling below specified CIF values.

Key changes introduced by Notification No. 56/2025-26

Overview of policy shift

Earlier, all three items could be imported freely, subject only to standard regulatory requirements under the Drugs and Cosmetics Act. Post-notification:

  • Imports at or above the notified MIP thresholds continue to be treated as “Free”.
  • Imports below the specified MIP values are now categorised as “Restricted”, meaning they require specific import authorisation from the DGFT.
  • The restrictions are explicitly time-bound and shall operate for one year from the date the notification is published.

Minimum Import Price thresholds

The MIP has been fixed with reference to CIF (Cost, Insurance and Freight) value per kilogram as under:

  1. Penicillin G-potassium (PEN-G) under ITC HS code 29411010

    • If CIF value is less than ₹2,216 per kg → Import status becomes “Restricted”.
    • If CIF value is ₹2,216 per kg or more → Import remains under “Free” policy (subject to applicable conditions).

  2. Amoxicillin Trihydrate under ITC HS code 29411030

    • If CIF value is less than ₹2,733 per kg → Import category is “Restricted”.
    • If CIF value is ₹2,733 per kg or more → Treated as “Free” import, governed by existing Chapter 29 policy conditions.

  3. 6-APA under ITC HS code 29411050

    • If CIF value is less than ₹3,405 per kg → Such consignments are “Restricted”.
    • If CIF value is ₹3,405 per kg or higher → Permitted as “Free” import.

Important:
“Restricted” in DGFT parlance does not mean “prohibited”. It implies that imports in this category can only be undertaken after obtaining a specific import authorisation/licence in accordance with the DGFT’s procedures.

Item-wise analysis of amended import policy

1. Penicillins and its salts – ITC (HS) Code 29411010

Earlier position

  • Import policy: Free
  • Condition: Imports permissible subject to Registration and other requirements as implemented by the Drug Controller General of India under the Drugs and Cosmetics Act.

Revised position

While the import policy label remains “Free”, additional conditions now apply:

  1. MIP-based restriction

    • Import of Penicillin G-potassium (PEN-G) with a CIF value below ₹2,216 per kg has been reclassified as “Restricted”.

  2. Exemptions from MIP
    The MIP requirement does not apply to imports undertaken by:

    • 100% Export Oriented Units (EOUs)
    • Units set up in Special Economic Zones (SEZs)
    • Imports made under the Advance Authorisation Scheme

    This exemption is conditional. It is available only if the imported material is not sold into the Domestic Tariff Area (DTA).