Center waives customs duty on cotton imports till September 30
Highlight
- The central government has waived off all customs duties on cotton imports till September 30, 2022.
- This is done to promote textile exports.
- CBIC announces exemption from customs duty and AIDC on cotton imports in a notification
To boost textile exports, the central government has waived off all customs duties on cotton imports till September 30, 2022.
The Central Board of Indirect Taxes and Customs (CBIC) in a notification announced exemption from customs duty and Agriculture Infrastructure Development Cess (AIDC) on cotton imports.
“This notification shall be effective from 14th April, 2022 and shall remain in force till 30th September, 2022,” the notification said.
This exemption will benefit the textile chain – yarn, fabric, garments and made-ups and will bring relief to the consumers. The ministry said that textile exports will also benefit. The Federation of Indian Export Organizations thanked the Finance and Textiles Ministers for reducing customs duty on raw cotton from 10 per cent to zero after duty-free imports of raw cotton pushed up exports of value-added cotton textiles.
Dr A Sakthivel, President, FIEO said, “This will give a boost to exports from the apparel and made-up sectors along with softening the prices of yarn and fabrics.”
The FIEO chief said cotton textile exports would get a boost as higher cotton prices were affecting the competitive edge. He said that India has recently increased its market share in apparel exports to the US and several countries and the signing of CEPA with UAE and Australia will accelerate this further.
“Similar arrangements are being made with the UK, Canada, the European Union, the GCC and the SACU,” he said.
Dr. Sakthivel said that the government has provided all possible assistance to the textile sector and we should strive to reach USD 100 billion in textile exports by 2030.
(with ANI inputs)
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