The exemption will benefit the textile chain- yarn, fabric, garments and made-ups and provide relief to the textile industry and consumers
The Government of India has decided to exempt all customs duty on the import of cotton to lower the price of cotton in the public interest. This exemption would benefit the textile chain- yarn, fabric, garments and made-ups and provide relief to the textile industry and consumers.
The industry has been demanding the removal of 5 per cent of Basic Customs Duty (BCD) and 5 per cent of Agriculture Infrastructure and Development Cess (AIDC) on raw cotton.
The Central Board of Indirect Taxes and Customs (CBIC) notified the exemption from Customs duty and Agriculture Infrastructure development Cess for import of cotton.
This notification has come into effect from April 14, 2022, and will remain in force up to and inclusive of September 30, 2022. Removal of import duty on raw cotton should have a salutary effect on cotton prices in India.
