China Plus One Strategy: Vietnam Thailand India Sourcing Guide | BEFACH International
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China+1 Sourcing Strategy: Vietnam vs Thailand for Indian Importers
May 18, 2026
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China+1 Sourcing Strategy: Vietnam vs Thailand for Indian Importers
DGFT Notification 22/2026: Recovered Paper Imports Now Under PIMS — What Importers Must Do Immediately
DGFT Notification 22/2026: Recovered Paper Imports Now Under PIMS — What Importers Must Do Immediately
Breaking Alert | July 11, 2026
As companies accelerate their China plus one strategy and diversify sourcing operations across Vietnam, Thailand, and India, staying compliant with evolving import regulations is essential. The Directorate General of Foreign Trade (DGFT) has issued Notification No. 22/2026-DGFT dated July 11, 2026, bringing recovered paper and paperboard imports under the mandatory Paper Import Monitoring System (PIMS). If your business imports waste paper, old newspapers, or recycled paperboard, this affects you directly—and the compliance deadline is approaching fast.
What Just Happened
DGFT has expanded PIMS coverage to include recovered (waste and scrap) paper and paperboard under Chapter 47 of the ITC (HS). This means every import shipment in this category now requires advance registration on the PIMS portal before your goods arrive at Indian ports.
This notification follows the government's broader strategy to monitor paper imports and protect domestic manufacturers. The paper industry has been lobbying for stricter import oversight. DGFT has responded with this mandatory monitoring mechanism.
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🔴 Watch Out: PIMS registration is mandatory before import. If you attempt customs clearance without valid PIMS registration, your shipment will be held up at the port. This triggers demurrage charges and supply chain delays.
What This Means for Indian Importers
Immediate Impact:
Advance Planning Required — You can no longer import recovered paper on short notice. Factor in PIMS registration time when negotiating delivery schedules with overseas suppliers.
Documentation Burden — Each import consignment requires separate PIMS registration. Details must include supplier information, product specifications, quantity, and expected arrival date.
Cost Implications — While PIMS registration itself doesn't carry a fee, delays in compliance will cost you. Port detention charges, demurrage, and potential contract penalties with buyers add up quickly.
Enhanced Scrutiny — DGFT now has visibility into your import patterns. Consistent discrepancies between registered and actual imports can trigger audits or license suspensions.
💡 Pro Tip: Register on the PIMS portal before finalising purchase orders with foreign suppliers. This gives you buffer time to resolve any technical glitches. It also ensures your registration number is ready for the shipping documents.
China Plus One Strategy: Sourcing from Vietnam, Thailand, and India Under New PIMS Rules
As global supply chains realign under the China plus one strategy, businesses increasingly look to Vietnam, Thailand, and India for manufacturing and raw material sourcing. However, when importing recovered paper into India from these alternative markets, compliance with Notification 22/2026-DGFT becomes critical.
Suppliers in Vietnam and Thailand may not be fully aware of India's new PIMS requirements. If you are sourcing recovered paper from these countries as part of your China plus one strategy, communicate these registration requirements to your vendors immediately.
Indian importers working with suppliers across Vietnam, Thailand, and India need to verify that shipping documentation reflects accurate PIMS registration numbers. Failure to coordinate with overseas partners in these key sourcing destinations can result in shipments being held at Indian ports. This disrupts your supply chain diversification efforts.
Key Considerations for Diversified Sourcing:
Vendor Education: Ensure suppliers in Vietnam and Thailand understand that PIMS registration must precede shipment dispatch.
Documentation Alignment: Bills of lading from India, Vietnam, or Thailand must reference valid PIMS registration details.
Timeline Coordination: Account for registration processing time when planning deliveries from these China plus one strategy destinations.
Immediate Action Steps
If you import recovered paper or paperboard, take these steps this week:
Review Upcoming Shipments — Check all pending orders for products under Chapter 47. Any shipments arriving after the notification effective date require PIMS registration.
Brief Your CHA — Your Customs House Agent needs to know about this change. Confirm they will verify PIMS registration before filing bills of entry.
Update SOPs — Modify your import standard operating procedures. Include PIMS registration as a mandatory pre-shipment step.
Monitor DGFT Updates — Watch for clarifications or amendments to Notification 22/2026. DGFT often issues FAQs after major notifications.
The Bottom Line
Notification 22/2026-DGFT is not optional guidance—it is mandatory compliance. The days of importing recovered paper without advance monitoring are over.
Indian importers who adapt quickly will maintain smooth supply chains. Those who delay will face port delays, additional costs, and frustrated customers.
Need help navigating PIMS registration or understanding how this notification affects your specific product lines? Contact our import compliance team for assistance with DGFT procedures and customs documentation.
Frequently Asked Questions
Q: Does Notification 22/2026 apply to imports from Vietnam and Thailand under the China plus one strategy?
A: Yes. Regardless of whether you are sourcing from traditional markets or diversifying under the China plus one strategy to Vietnam, Thailand, or India, PIMS registration is mandatory for all recovered paper imports under Chapter 47.
Q: How does the China plus one strategy impact compliance requirements for Indian importers?
A: While diversifying sourcing to Vietnam, Thailand, and India reduces dependency risks, it introduces new compliance layers. Importers must ensure that new suppliers in these markets understand India's PIMS requirements. They must provide accurate documentation for customs clearance.
Q: What happens if my supplier from Vietnam ships without PIMS registration?
A: Shipments arriving without prior PIMS registration will be held at Indian ports. Even if you are implementing a China plus one strategy with sourcing partners in Vietnam, Thailand, or India, customs will not clear recovered paper imports without valid registration.
Q: Is there a grace period for compliance with Notification 22/2026?
A: No. The notification is effective immediately. All shipments arriving after the effective date require advance PIMS registration. Importers should treat this as urgent regardless of their sourcing strategy.
Q: Can I register multiple shipments from Thailand under one PIMS application?
A: No. Each import consignment requires separate PIMS registration with specific details. These include supplier information, product specifications, quantity, and expected arrival date.
