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Dyes & Intermediates


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Trade Policy
Dyes and intermediates are classified under HS code 3201 to 3207. All items under these codes can be freely imported.

Industry Policy
Industrial undertakings involved in producing dyes and intermediates are exempt from obtaining an industrial license are required to file an Industrial Entrepreneur Memoranda (IEM) in Part 'A' (as per prescribed format) with the Secretariat of Industrial Assistance (SIA), Department of Industrial Policy and Promotion, Government of India, and obtain an acknowledgement. No further approval is required. Immediately after commencement of commercial production, Part B of the IEM has to be filled in the prescribed format.

Industrial undertakings are free to select the location of a project.

Many items under the dyes and intermediates are reserved for production by small scale units. Under the small scale policy, equity holding by other units including foreign equity in a small scale undertaking is permissible up to 24 per cent.

Tariff-non-tariff Policy
Custom duty on items falling under coded 3202 to 3207 is 56.83 per cent which includes 30 per cent basic duty, 16 per cent additional duty and 4 per cent special additional duty. Items beginning with codes 3201 are having a lower basic duty of 15 per cent, because of this total duty is lower at 38.74 per cent.

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