- Central govt has waived off all customs duties on cotton imports till September 30, 2022
- It is done in order to boost the textile exports
- CBIC announced the exemption from customs duty & AIDC on cotton imports in a notification
The Central government has waived off all customs duties on cotton imports till September 30, 2022, to boost the textile exports.
The Central Board of Indirect Taxes and Customs (CBIC) announced the exemption from customs duty and Agriculture Infrastructure Development Cess (AIDC) on cotton imports in a notification.
"This notification shall come into effect on April 14, 2022, and will remain in force up to and inclusive of September 30, 2022," the notification reads.
This exemption would benefit the textile chain- yarn, fabric, garments and made-ups and provide relief to consumers. Textile exports would also benefit, the ministry noted. The Federation of Indian Export Organisations thanked the Finance and Textile Ministers for reducing the customs duty on raw cotton from 10 per cent to zero stating that the duty-free import of raw cotton pushed exports of value-added cotton textile.
Dr A Sakthivel, President of FIEO said, "It will push exports of apparel and made-up sectors significantly by softening the prices of yarn and fabrics as well."
FIEO Chief said that cotton textile exports will get a further boost as the high prices of cotton were affecting the competitive edge. He added that India has increased its market share in apparel exports in the US and many countries recently and the signing of CEPA with UAE and Australia will further accelerate it.
"Similar arrangements are being worked out with the UK, Canada, EU, GCC and SACU," he added.
Dr Sakthivel said that the Government has provided all support to the textile sector and we should endeavour to reach USD 100 billion in textile exports by 2030.
(With ANI inputs)Also Read: Budget 2022: Customs duty on cut and polished diamonds, gems to be reduced to 5 pc