Government exempts all customs duties on raw cotton imports from 19 August to 30 September 2025
The Government exempted all customs duties on raw cotton imports with effect from 19 August 2025 until 30 September 2025, removing an effective 11% import duty to stabilise domestic cotton prices.
Summary
The Government of India exempted all customs duties on the import of raw cotton with effect from 19 August 2025 until 30 September 2025, in a decision notified by the Central Board of Indirect Taxes and Customs (CBIC). The exemption removes the 5% Basic Customs Duty, the 5% Agriculture Infrastructure and Development Cess and a 10% Social Welfare Surcharge on both, which together amounted to an 11% import duty on cotton. According to the Ministry of Textiles, the move responds to industry demands amid rising domestic prices and aims to improve raw cotton availability, stabilise prices, support export competitiveness and protect textile SMEs.
Key facts
- Period
- 19 Aug 2025 to 30 Sep 2025
- Notified by
- CBIC
- Removed
- 5% BCD + 5% AIDC + 10% SWS on both
- Total duty
- 11% on raw cotton
- Aims
- Availability, price stability, export competitiveness, support to SMEs
Practice MCQs 3 questions
Until what date did the Government exempt raw cotton imports from all customs duties, with effect from 19 August 2025?
Show answer
Correct answer: B — 30 September 2025
The Government exempted all customs duties on the import of raw cotton with effect from 19 August 2025 until 30 September 2025.
What was the cumulative import duty on raw cotton that was removed by the exemption announced on 19 August 2025?
Show answer
Correct answer: C — 11%
The exemption removed the 5% Basic Customs Duty, the 5% AIDC and a 10% Social Welfare Surcharge on both, cumulatively an 11% import duty on cotton.
Consider the following statements about the customs duty exemption on raw cotton announced in August 2025: 1. The exemption was notified by the Directorate General of Foreign Trade (DGFT). 2. The exemption took effect from 1 September 2025. Which of the above is/are correct?
Show answer
Correct answer: D — Neither 1 nor 2
Neither statement is correct: the exemption was notified by the Central Board of Indirect Taxes and Customs (CBIC), and it took effect from 19 August 2025, running until 30 September 2025.