Notification No. 19/2026-Customs, Dated 30-05-2026
The Central Government has issued a notification granting exemption from Customs Duty and Agriculture Infrastructure and Development Cess (AIDC) on imports of cotton falling under Heading 5201.
The exemption is intended to facilitate cotton imports and shall remain available up to 31 October 2026.
1. Complete Exemption From Customs Duty
Under the notification, cotton classified under Heading 5201 has been exempted from the entire customs duty leviable under the First Schedule to the Customs Tariff Act, 1975.
Accordingly, eligible imports of cotton during the specified period will not attract Basic Customs Duty under the Customs Tariff Act.
2. Exemption From Agriculture Infrastructure and Development Cess (AIDC)
The Government has also exempted the specified cotton imports from the entire Agriculture Infrastructure and Development Cess (AIDC) levied under the Finance Act, 2021.
As a result, importers will not be required to pay AIDC on covered cotton imports during the exemption period.
3. Goods Covered Under the Notification
The exemption applies to:
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- Cotton falling under Heading 5201 of the Customs Tariff
Imports of cotton classified under the specified tariff heading will be eligible for both Customs Duty and AIDC exemptions.
4. Effective Period of Exemption
The exemption shall:
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- Come into force from 01-06-2026; and
- Remain effective up to and including 31-10-2026
The benefit will therefore be available only for imports made during the notified period.
5. Benefit Available to Importers
Importers of cotton covered under the notification may avail themselves of an exemption from:
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- Basic Customs Duty; and
- Agriculture Infrastructure and Development Cess (AIDC)
for eligible imports undertaken during the specified period.
6. Objective of the Notification
The exemption aims to facilitate the availability of cotton by reducing import costs and easing the duty burden on importers.
By providing temporary relief from Customs Duty and AIDC, the Government seeks to support the cotton and textile value chain, improve supply availability and address market requirements during the notified period.
