The Ministry of Finance vide its notification dated 13th April 2022, has decided to exempt all customs duty on 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 textile industry and consumers.
At present, there is a 5% basic customs duty (BCD) on cotton imports and 5% Agriculture Infrastructure and Development Cess (AIDC) on raw cotton. Since the industries has been demanding waiver of duty to lower domestic prices, CBIC has notified the exemption from Customs duty and Agriculture Infrastructure development Cess for import of cotton.
This notification shall come into effect from 14th April 2022 and will remain in force upto and inclusive of the 30th September 2022.
