{"id":5419,"date":"2025-08-20T18:40:03","date_gmt":"2025-08-20T13:10:03","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=5419"},"modified":"2025-08-22T12:31:09","modified_gmt":"2025-08-22T07:01:09","slug":"govt-exempts-customs-duty-on-cotton-imports-till-sept-2025","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/govt-exempts-customs-duty-on-cotton-imports-till-sept-2025","title":{"rendered":"Govt Exempts Customs Duty on Cotton Imports Till Sept 2025"},"content":{"rendered":"<p><span class=\"TextRun SCXW149257104 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW149257104 BCX0\" data-ccp-parastyle=\"Body-All Documents\" data-ccp-parastyle-defn=\"{&quot;ObjectId&quot;:&quot;f54e3151-7552-5563-bc14-dd1598e94375|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[469775450,&quot;Body-All Documents&quot;,201340122,&quot;2&quot;,134234082,&quot;true&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocuments&quot;,335572020,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777844,&quot;Book Antiqua&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,335559740,&quot;280&quot;,201341983,&quot;1&quot;,335559739,&quot;0&quot;,335551550,&quot;6&quot;,335551620,&quot;6&quot;,469777929,&quot;Body-All Documents Char&quot;,201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777843,&quot;Calibri&quot;,201341986,&quot;1&quot;,268442635,&quot;24&quot;]}\" data-ccp-parastyle-linked-defn=\"{&quot;ObjectId&quot;:&quot;d1cb5994-2cf1-5883-8af4-faa182bd9769|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777843,&quot;Calibri&quot;,469777844,&quot;Book Antiqua&quot;,201341986,&quot;1&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,268442635,&quot;24&quot;,469775450,&quot;Body-All Documents Char&quot;,201340122,&quot;1&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocumentsChar&quot;,335572020,&quot;1&quot;,134231262,&quot;true&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,469777929,&quot;Body-All Documents&quot;,469778324,&quot;Default Paragraph Font&quot;]}\"><a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/104010000000112555\/govt-exempts-customs-duty-and-aidc-on-import-of-cotton-notification\">Notification No. 35\/2025<\/a>-Customs<\/span><span class=\"NormalTextRun SCXW149257104 BCX0\" data-ccp-parastyle=\"Body-All Documents\">, Dated 18-08-2025<\/span><\/span><span class=\"EOP SCXW149257104 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:280}\"><br \/>\n<\/span><\/p>\n<h3 data-start=\"93\" data-end=\"149\">Government Grants Duty Exemption on Cotton Imports<\/h3>\n<p data-start=\"150\" data-end=\"554\">The Government has issued a fresh notification providing full exemption on goods falling under <strong data-start=\"245\" data-end=\"261\">Heading 5201<\/strong>, which primarily covers raw cotton. This exemption relieves importers from paying customs duty on cotton, a key raw material for the textile and garment industry. By removing the customs duty burden, the government aims to stabilize domestic supply and provide cost relief to manufacturers.<\/p>\n<h3 data-start=\"561\" data-end=\"629\">Exemption from Agriculture Infrastructure and Development Cess<\/h3>\n<p data-start=\"630\" data-end=\"1002\">In addition to customs duty, the notification also exempts cotton imports from the <strong data-start=\"713\" data-end=\"770\">Agriculture Infrastructure and Development (AID) Cess<\/strong>, which is normally levied under the Finance Act, 2021. This dual exemption ensures that importers face no additional levy on cotton imports during the specified period, thereby reducing the overall landed cost of cotton in India.<\/p>\n<h3 data-start=\"1009\" data-end=\"1044\">Effective Period of Exemption<\/h3>\n<p data-start=\"1045\" data-end=\"1448\">The notification clearly specifies that this exemption will apply <strong data-start=\"1111\" data-end=\"1136\">from 19th August 2025<\/strong> and shall remain valid <strong data-start=\"1160\" data-end=\"1211\">till 30th September 2025 (both dates inclusive)<\/strong>. This limited time frame indicates that the government intends to provide temporary relief to the textile industry, possibly in response to short-term supply constraints, seasonal demand fluctuations, or rising domestic cotton prices.<\/p>\n<h3 data-start=\"1455\" data-end=\"1496\">Implications for the Textile Sector<\/h3>\n<p data-start=\"1497\" data-end=\"2002\">This duty exemption is expected to significantly benefit textile and apparel manufacturers, who rely heavily on cotton as a raw material. By lowering import costs, the measure could help reduce production expenses, stabilize fabric prices, and improve competitiveness in domestic and export markets. However, as the exemption is temporary, industry stakeholders will need to closely monitor government policy decisions beyond September 2025 to plan their raw material procurement strategies effectively.<\/p>\n<p data-start=\"1497\" data-end=\"2002\">\n","protected":false},"excerpt":{"rendered":"<p>Notification No. 35\/2025-Customs, Dated 18-08-2025 Government Grants Duty Exemption on Cotton Imports&hellip;<\/p>\n","protected":false},"author":16,"featured_media":5486,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,178,47],"tags":[],"class_list":["post-5419","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-customs-statutory-scope"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Govt Exempts Customs Duty on Cotton Imports Till 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