Exemption of Customs Duty on Cotton Import

Current GK (Utt. Patwari) Budgeting and Fiscal policy

17-Apr-22

To reduce the cotton prices, the Indian government has decided to exempt all customs duties on the imports of cotton. This exemption announced by the government will be benefiting the textile chain- fabric, yarn, made-ups, and garments as well as provide relief to the consumers and the textile industry.

Overview:

The removal of 5 percent Agriculture Infrastructure and Development Cess (AIDC) and 5 percent Basic Customs Duty (BCD) on raw cotton has been demanded by the industry.
The exemption of the Agriculture Infrastructure development Cess and Customs Duty for import of cotton has been notified by the Central Board of Indirect Taxes and Customs (CBIC).