Cotton Import Duty Exemption Extended Until October 31

The government has extended the exemption from customs duty and agriculture infrastructure and development cess (AIDC) on cotton imports for another month, until October 31, 2022.

The extension will benefit the textile industry because cotton crop sowing has been delayed in some areas due to patchy monsoon rainfall.

According to officials, the Centre will reassess cotton crop cultivation in the next two months and may extend it further if necessary. Following industry demand after cotton prices rallied in the global market, the Central Board of Indirect Taxes and Customs (CBIC) exempted the levy of customs duty and AIDC on cotton imports until September 30, 2022 in April.

According to a board notification, the words "30th September, 2022," the figures, letters, and word "31st October, 2022" will be substituted."