SF Prep Notes

Centre extends import duty exemption on cotton till 31 December 2025

The Finance Ministry announced on 28 August 2025 that the import duty exemption on cotton (HS 5201), in force from 19 August, would be extended from 30 September to 31 December 2025.

Summary

The Union Finance Ministry announced on 28 August 2025 that the import duty exemption on cotton (HS 5201) would be extended until 31 December 2025. The Centre had temporarily exempted cotton from import duty from 19 August to 30 September 2025 to improve availability of cotton for the textile sector. The extension is meant to support exporters further, with a formal notification to follow.

Key facts

Announced
28 Aug 2025, Ministry of Finance
Product
Cotton (HS 5201)
Original exemption
19 Aug – 30 Sep 2025
Extended till
31 Dec 2025
Purpose
Raw material for textile sector; support exporters

Practice MCQs 2 questions

Q1

On 28 August 2025, the Centre extended the import duty exemption on cotton (HS 5201) till:

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Correct answer: C — 31 December 2025

The exemption, originally from 19 August to 30 September 2025, was extended till 31 December 2025.

Q2 Advanced

The temporary import duty exemption on cotton, later extended in August 2025, had originally come into force on:

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Correct answer: D — 19 August 2025

The Centre had temporarily exempted cotton from import duty from 19 August 2025 till 30 September 2025.

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