Duty free import of raw cotton to push exports of value-added cotton textile

The government’s decision to waive customs duty on cotton imports will help boost exports of value added products of textiles, Federation of Indian Export Organisations (FIEO) President A Sakthivel said. The move, he said, will promote exports of apparel and made-ups sectors significantly by softening the prices of yarn and fabrics as well. The Finance Ministry waived customs duty on cotton imports till September 30, a move which will benefit the textile industry and lower prices for consumers. Currently, cotton imports attract 5 percent Basic Customs Duty (BCD) and 5 percent Agriculture Infrastructure Development Cess (AIDC). The industry had been demanding a duty waiver to lower domestic prices. The Central Board of Indirect Taxes and Customs (CBIC) notified the exemption from customs duty and AIDC for import of cotton.