Cotton Duty (BCD and AIDC) Exempted Once Again Till New Kharif Crop Comes in, Concession only for Five
Months from 1 June to 31 Oct. 2026
Ø
Central
Government temporarily exempts all customs duties on import of cotton from 1st
June, 2026 till 31st October, 2026
Ø
Earlier, the Cotton Duty (BCD
and AIDC) Exempted to 31 Dec 2025 by Notification No. 35/2025-Customs dated
18th August, 2025 as amended by Ntfn 36/28.08.2025 – Lapsed on 31 December,
2025]
·
The Central Government has temporarily exempted all customs duties on cotton imports.
·
The exemption is effective from 1 June 2026 to 31 October 2026.
·
The measure aims to increase
cotton availability for India's textile sector.
·
Duty-free imports are expected to reduce raw material costs
for textile and apparel manufacturers.
·
The relief is intended to benefit both manufacturers and consumers
while balancing the interests of domestic cotton farmers.
·
Improved cotton availability is expected to support production and supply stability
in the textile industry.
·
The move is likely to particularly benefit small and medium enterprises (SMEs)
in the textile and apparel sector.
·
Overall, the exemption is expected to strengthen the competitiveness and performance of the
domestic textile industry.
To augment availability of cotton for the
Indian textile sector, the Central Government has temporarily exempted all customs
duties on import of cotton from 1st June, 2026 till 31st October, 2026.
The temporary duty exemption is expected
to reduce input costs across the textile and apparel sector, thereby providing a
targeted relief to manufacturers and consumers, while also keeping the interests
of domestic farmers in mind.
Overall, the measure is anticipated to have
a positive impact on the performance of the domestic textile industry, especially
the small and medium enterprises, by ensuring better availability of cotton in the
market.
[Notification
No. 19/2026-Customs dated 30 May, 2026]
Seeks
to prescribe BCD and AIDC on Raw Cotton for a specified period.
G.S.R. ….(E).— In exercise of the powers
conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962)
read with section 124 of the Finance Act, 2021 (13 of 2021), the Central Government,
on being satisfied that it is necessary in the public interest so to do, hereby
exempts the goods of the description specified in column (3) of the Table below,
falling under the heading of the First Schedule to the Customs Tariff Act, 1975
(51 of 1975) (hereinafter referred to as the ‘Customs Tariff Act’), specified in
the corresponding entry in column (2) of the said Table, when imported into India,
from the whole of the duty of customs leviable thereon under the First Schedule
to the Customs Tariff Act and from the whole of the Agriculture Infrastructure and
Development Cess leviable thereon under the said section
of the Finance Act, 2021 (13 of 2021), namely: -
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TABLE |
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Sl. No. |
Heading |
Description of Goods |
|
(1) |
(2) |
(3) |
|
1. |
5201 |
Cotton |
2. This notification shall come into force with effect from the 01st day
of June, 2026, and shall remain in force up to and inclusive of the 31st day of
October, 2026.
[F. No. CBIC-190354/288/2021-TO(TRU-I)]