Centre waives off customs duty on cotton imports till Sept 30
Premium- CBIC in its statement said that the notification will come into effect on April 14, 2022, and will remain in force up to and inclusive of September 30, 2022.
The Centre has waived customs duty on cotton imports till September 30, a move that will give a boost the textile exports. Also, this will help the industry in lowering domestic prices.
In a notification, the Central Board of Indirect Taxes and Customs (CBIC) announced the exemption from customs duty and agriculture infrastructure development cess on cotton imports.
CBIC in its statement said that the notification will come into effect on April 14, 2022, and will remain in force up to and inclusive of September 30, 2022.
The Finance Ministry stated that this exemption shall benefit the textile chain -- yarn, fabric, garments, and made-ups and provide relief to consumers. Textile exports would also benefit, as reported by PTI.
At present, there is a 5% basic customs duty (BCD) on cotton imports, while 5% is charged as the Agriculture Infrastructure Development Cess (AIDC).
The announcement comes during the time the industry has been seeking for waiver of duty in order to lower domestic prices.
Between April - March 2022, exports of cotton yarn/fabs./madeups, handloom products etc. stood at $15,244.20 million rising by 55.11% from $9,827.89 million in the previous fiscal.