Boost for Textile
Sector with Import Duty on Over 50 Products Doubled
·
New Rates are within WTO Bound Rates
which are Generally 40% for Consumable Goods
In a major relief to the domestic
textile industry, the government has doubled the import duty on over 50 textile
products from fibre to apparels.
The import duty on apparels such as coat
and pants, jackets, and ladies garments, which earlier was 10 per cent, will
now be 20 per cent, according to the notification issued by Central Board of
Indirect Taxes and Custom. Similar rates will be applicable to clothes made
from jute or paper yarn, different varieties of carpets, laminated fibre and sheets made from fibres,
and so on.
On some items, the rates will be 20 per
cent or ₹38 per sq metre
whichever is higher. According to the board, there have been 45 changes,
including in specific and ad valorem rates.
Though nothing has been said about the
effective date of the new rates, it is believed that the revised rates will
come into effect from the date of gazette notification which is July 16, as
changes in indirect taxes come into effect immediately unless specified.
As per WTO norms, India will not be able
to give any further incentive to the textile sector and the government has
increased the import duties to encourage domestic manufacturing. This will
certainly boost Make in India, experts felt.
Cost advantage
MS Mani, Partner with Deloitte India,
said the Customs duty increase on certain finished textile products would lead
to a cost advantage for Indian textile manufacturing. Many foreign companies
may now consider manufacturing in India to cater to the domestic demand as
well, he added
Imports of textile yarn, fabric, made-up
articles grew by 8.58 per cent to $168.64 million in June. However, exports of
cotton yarn/ fabrics/made-ups, handloom products and so on grew by 24 per cent
to $986.2 million. Man-made yarn/fabrics/made-ups exports grew 8.45 per cent to
$403.4 million. Exports of all textile ready-made garments dipped by 12.3 per
cent to $13.5 billion.
[Notification
No.53/2018-Customs dated 16 July 2018]
In exercise of the powers conferred by the sub-section (1) of section 25 of the
Customs Act, 1962 (52 of 1962), the Central Government, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue),
No. 82/2017, dated the 27th
of October, 2017, published in the
Gazette of India, Extraordinary vide number G.S.R.1341 (E), dated the 27th
of October, 2017,
namely: -
In
the said
notification, in the Table,
-
(i) against serial number 23, in column (2), for the figures 5310, the figures, brackets
and words 5310 (except sub-heading 531010) shall be substituted;
(ii) after serial number 23 and entries relating thereto, the following serial number and
entries shall be inserted,
namely: -
|
23A |
531010 |
All
goods |
20%; |
(iii) after serial number 31 and entries relating thereto, the following serial number and
entries shall be inserted,
namely: -
|
31A |
540752 |
All
goods |
20% or Rs 38 per
sq meter,
whichever is higher; |
(iv) against serial number 104, in column (2), for the figures 56, the figures, brackets
and
words 56 (except sub-heading 560130,
560311, 560312, 560314, 560392 and 560394) shall be substituted;
(v) after serial number 104 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
104A |
560130, 560311,
560312, 560314, 560392,
560394 |
All
goods |
20%; |
(vi) against serial number 105, in column (2) for the figures 5701, the figures, brackets
and words 5701 (except sub-heading 570190) shall be substituted;
(vii) after serial number 105 and entries relating thereto, the following serial number and entries shall be inserted, namely:
-
|
105A |
570190 |
All
goods |
20%; |
(viii) against serial number 106, in column (2), the figures 570231 shall be
omitted;
(ix) after serial number 106 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
106A |
570231 |
All
goods |
20%; |
(x) against serial number 108, in column (2), the figures 570241 shall be
omitted;
(xi) after serial number 108 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
108A |
570241 |
All
goods |
20%; |
(xii) against serial numbers 109, 115, 116, 117, 118 and 120,
in column (4), for the figures 10%, the figures 20% shall be substituted;
(xiii) against serial number 121, in column (2), for the figures 5705, the figures, brackets and
words 5705 (except sub-heading 570500) shall be substituted;
(xiv) after serial number 121 and entries relating thereto, the following serial number and entries shall be substituted: -
|
121A |
570500 |
All
goods |
20%; |
(xv) against serial number 150, in column (2), for the figures, brackets and words 59
(except 5902), the
figures, brackets and words 59 (except 5902, 5903 and 591000)
shall be substituted;
(xvi) after serial number 151 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
151A |
5903 |
All
goods |
20%; |
|
151B |
591000 |
All
goods |
20%; |
(xvii) against serial number 163 in column (4), for the figures 10%, the figures 20%
shall be substituted;
(xviii) against serial number 177, in column (2), for the figures 6103, the figures, brackets and words 6103 (except sub-heading 610333, 610342 and 610343)
shall be substituted;
(xix) after serial number 177 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
177A |
610333,
610342, 610343 |
All
goods |
20%; |
(xx) against serial number 183, in column (2), the figures 61044300 shall be omitted;
(xxi) after serial number 183 and entries relating thereto, the following serial number and
entries shall be inserted,
namely: -
|
183A |
610443 |
All
goods |
20%
or Rs. 255 per
piece,
whichever is higher; |
(xxii) against S. Nos. 187 and 188, in column (4), for the figures 10%, the figures 20%
shall be substituted;
(xxiii) against serial number 189, in column (2), the figures 610510 shall be
omitted;
(xxiv) after serial number 189 and entries relating thereto, the following serial number and entries shall be inserted,
namely : -
|
189A |
610510 |
All
goods |
20% or Rs. 83 per piece, whichever is higher; |
(xxv) against serial number 192, in column (4), for the figures 10%, the figures 20% shall be substituted;
(xxvi) against serial number 201, in column (2), the figures 610832 shall be
omitted;
(xxvii) after serial number 201 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
201A |
610832 |
All
goods |
20%; |
(xxviii) against S. Nos. 205, 206 and 208,
in column (4), for the figures 10%, the figures
20% shall be substituted;
(xxix) against serial number 210,
in column (2), for the figures 6111, the figures, brackets
and words 6111 (except sub-heading 611120 and 611190) shall be substituted;
(xxx) after serial number 210 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
210A |
611120,
611190 |
All
goods |
20%; |
(xxxi) against serial number 212, in column (2), for the figures 6114, 6115, 6116, 6117,
the figures, brackets and words 6114 (except sub-heading 611430), 6115 (except
sub-headings 611510, 611529, and 611599), 6116 (except sub-headings 611610
and 611699), 6117 (except sub-headings
611780 and 611790) shall be substituted;
(xxxii) after serial number 212 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
212A |
611430, 611510,
611529, 611599, 611610,
611699, 611780, 611790 |
All
goods |
20%; |
(xxxiii) against S. Nos. 218, 229, 232, 234, 237, 238, 239, 246 and 249, in column (4), for the
figures 10%, the figures 20% shall be substituted;
(xxxiv) against serial number 250, in column (2), the figures 620443,
62044400 shall be omitted;
(xxxv) after serial number 250 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
250A |
620443,
620444 |
All
goods |
20%
or Rs. 145 per
piece,
whichever is higher; |
(xxxvi) against S. Nos. 254, 255, 256, 257, 259, 262 and 263, in column (4), for the figures
10%,
the figures 20% shall be substituted;
(xxxvii) against serial number 274, in column (2), the figures 620990 shall be
omitted;
(xxxviii) after serial number 274 and entries relating thereto, the following serial number and entries shall be inserted, namely:
-
|
274A |
620990 |
All
goods |
20%; |
(xxxix) against S. Nos. 277 and 278, in column (4), for the figures 10%, the figures 20%
shall be substituted;
(xl) against serial number 285, in column (2), the figures 62121000, 621290
shall be omitted;
(xli) after serial number 285 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
285A |
621210,
621290 |
All
goods |
20% or Rs. 30 per piece, whichever is higher; |
(xlii) against serial number 293, in column (2), for the figures 6217, the figures, brackets
and words 6217 (except sub-heading 621710) shall be substituted;
(xliii) after serial number 293 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
293A |
621710 |
All
goods |
20%; |
(xliv) against S. Nos. 297 and 298, in column (4), for the figures 10%, the figures 20%
shall be substituted;
(xlv) after serial number 304 and entries relating thereto, the following serial number and entries shall be inserted,
namely: -
|
305 |
6310 |
All
goods |
20%; |
[F. No. 354/123/2017-TRU
(pt)]