To reduce the cotton prices, the Indian government has decided to exempt all customs duties and other unnecessary duties on the imports of cotton. This exemption was announced by the government is going to be benefiting the textile chain- fabric, yarn, made-ups, and garments furthermore provide relief to the consumers and therefore the textile industry.
The removal of 5% Agriculture Infrastructure and Development Cess (AIDC) and 5% Basic tariff (BCD) on raw cotton has been demanded by the industry.
The exemption of the Agriculture Infrastructure development Cess and custom for import of cotton has been notified by the Central Board of Indirect Taxes and Customs (CBIC).
From 14th April 2022, this notification has to get effected and till 30th September 2022, it’ll remain effective.
The exemption of customs on the import of raw cotton will have a beneficial effect on the value of cotton in India. this may help in reducing the costs of the commodity which can help this industry.
It is a nodal national agency of the govt that’s liable for administering GST, Customs, Service Tax, Central Excise, and Narcotics in India.
In 1855 the Customs & Central Excise department was established by the land Governor-General of India with the aim of administering customs laws within the country and therefore the collection of land revenues and import duties.