Increased import customs duty on Textiles

 

Increased import duty on Textiles in India

 

To boost domestic manufacturing, the government doubled import customs duty on 328 tariff lines of textile products from the existing rate of 10 per cent to 20 per cent under Section 159 of the Customs Act, 1962. The government before doubled import duty on over 50 textile products including jackets, suits and carpets to 20 percent, a move that is aimed at promoting domestic manufacturing. 

The government expects that the increase in duties would give an edge to domestic manufacturers as imported products are currently cheaper. And increase in manufacturing activity will help create jobs in the sector, which employs about 10.5 crore people. According to trade experts, India would not be able to give any direct exports incentive to the textile sector, so there is a need to support the segment to encourage domestic manufacturing.

Through a Customs notification no.58/2018, the Central Board of Indirect Taxes and Custom (CBIC) had hiked import duties as well as raised the ad-valorem rate of duty for certain items.

The details of Customs Notification No.58/2018 are as follows

Notification No. 58/2018-Customs

New Delhi, the 7th August, 2018

G.S.R. (E). - 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)            for serial number 105 and the entries relating thereto, the following serial number and entries shall be substituted, namely:- 

 

“105

5701

All goods

20%”;

 

(ii)

serial number 105A and the entries relating thereto shall be omitted;

(iii)

against serial numbers 106, 108, 110, 111 and 112, in column (4), for the figures

 

“10%”, the figures “20%” shall be substituted;

 

 

(iv)

after serial number 112 and the entries relating thereto, the following serial numbers

 

and entries shall be inserted, namely: -

 

 

 

 

 

 

 

 

 

 

“112A

5702 91(except 5702 91 20)

All goods

20%

 

 

112B

 

5702 91 20

All goods

10%”;

 

(v)

against serial numbers 113, 114 and 119, in column (4), for the figures “10%”, the

 

figures “20%” shall be substituted;

 

 

 

(vi)

after serial number 119 and the entries relating thereto, the following serial numbers

 

and entries shall be inserted, namely: -

 

 

 

 

 

 

 

 

 

“119A

5704 20 (except 5702 20 20)

All goods

20%

 

 

119B

 

5704 20 20

All goods

10%”;

 

(vii)            against serial numbers 170, 171, 172, 173, 174, 175 and 176, in column (4), for the figures “10%”, the figures “20%” shall be substituted; 

(viii)            for serial number 177 and the entries relating thereto, the following serial number and entries shall be substituted, namely:- 

“177

6103

(except 6103 29 10 and

All goods

20%”;

 

6103 29 20)

 

 

 (ix)            for serial number 177A and the entries relating thereto, the following serial number and entries shall be substituted, namely: - 

 

“177A

6103

29

10, 6103 29 20

All goods

10%”;

 

(x)

against serial numbers 178, 179, 180, 181, 182, 183, 184, 185 186,189, 190, 191, 193,

 

194, 195, 196, 197, 198, 199 and 200, in column (4), for the figures “10%”, the

 

figures “20%” shall be substituted;

 

 

 

(xi)

for serial number 201 and the entries relating thereto, the following serial number and

 

entries shall be substituted, namely:-

 

 

 

 

“201

6108

29,

 

All goods

20%”;

 

 

 

6108

31

00,

 

 

 

 

 

6108

32,

 

 

 

 

 

 

6108

39

(except 6108 39 10)

 

 

 

(xii)

for serial number 201A and the entries relating thereto, the following serial number

 

and entries shall be substituted, namely: -

 

 

 

 

 

 

 

 

 

 

 

“201A

6108

39

10

All goods

10%”;

 

 

(xiii)            against serial numbers 202 and 203, in column (4), for the figures “10%”, the figures “20%” shall be substituted; 

(xiv)            for serial number 204 and the entries relating thereto, the following serial number and entries shall be substituted, namely:-

 

“204

6108 99 (except 6108 99 20)

All goods

20%”;


(xv)            after serial number 204 and the entries relating thereto, the following serial number and entries shall be inserted, namely: - 

“204A

6108 99 20

All goods

10%”;


(xvi)            against serial numbers 207 and 209, in column (4), for the figures “10%”, the figures “20%” shall be substituted; 

(xvii)            for serial number 210 and the entries relating thereto, the following serial number and entries shall be substituted, namely:-

 

“210

6111,6112(except 6112 19 10,

All goods

20%”;

6112 20 10, 6112 49 10) 

(xviii)            for serial number 210A and the entries relating thereto, the following serial number and entries shall be substituted, namely: - 

 

“210A   6112 19 10, 6112 20 10, 6112   All goods

10%”;

49  10

(xix)            for serial number 212 and the entries relating thereto, the following serial number and entries shall be substituted, namely:-

 

“212

6114, 6115, 6116, 6117

All goods

20%”;

(xx)            serial number 212A and the entries relating thereto shall be omitted;

 

(xxi)            against serial numbers 211, 213, 214, 215, 216, 217, 219, 220, 221, 222, 223, 224, 225, 226, 227, 228, 230, 231, 233, 235, 236, 240, 241, 242, 243, 244, 245, 247, 248, 250, 251, 252, 253, 258, 260, 261, 264 and 265, in column (4), for the figures “10%”, the figures “20%” shall be substituted;

 

(xxii)            for serial number 266 and the entries relating thereto, the following serial number and entries shall be substituted, namely:-

 

“266

6207 19 (except 6207 19 30)

All goods

20% or Rs. 30 per piece,

 

 

 

whichever is higher”;

 

(xxiii)            after serial number 266 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

 

“266A

6207 19 30

All goods

10% or Rs. 30 per piece,

 

 

 

whichever is higher”;

 

(xxiv)            against serial numbers 267, 268, 269, 270, 271, 272, 273, 274 and 275, in column (4), for the figures “10%”, the figures “20%” shall be substituted;

 

(xxv)            for serial number 276 and the entries relating thereto, the following serial number and entries shall be substituted, namely:- 

“276

6210 30

All goods

20% or Rs. 305 per piece,

 

 

 

whichever is higher”;

 

(xxvi)            against serial numbers 279, 280, 281, 282, 283, 284, 285 and 286, in column (4), for the figures “10%”, the figures “20%” shall be substituted; 

(xxvii)            for serial number 287 and the entries relating thereto, the following serial number and entries shall be substituted, namely:- 

“287

6214  10  (except  6214  10

All goods

20% or Rs. 390 per piece,

 

30)

 

whichever is higher”;

 

(xxviii)

after serial number 287 and the entries relating thereto, the following serial number

 

and entries shall be inserted, namely: -

 

 

 

 

 

 

 

 

 

 

 

 

 

“287A

6214 10 30

All goods

10%  or  Rs.  390  per

 

 

 

 

 

piece,   whichever

is

 

 

 

 

 

higher”;

 

 

(xxix)

against serial numbers 288 and 289, in column (4), for the figures “10%”, the figures

 

“20%” shall be substituted;

 

 

 

 

 

(xxx)

for serial number 290 and the entries relating thereto, the following serial number and

 

entries shall be substituted, namely:-

 

 

 

 

 

 

“290

6214 90 (except 6214 90 21,

All goods

20% or Rs. 75 per piece,

 

 

 

 

6214 90 22, 6214 90 31, 6214

 

whichever is higher”;

 

 

 

 

90 32)

 

 

 

 

 

(xxxi)

after serial number 290 and the entries relating thereto, the following serial number

 

and entries shall be inserted, namely: -

 

 

 

 

 

 

 

 

 

 

 

 

“290A

6214  90  21,  6214 90 22,

All goods

 

10% or Rs. 75 per

 

 

 

6214 90 31, 6214 90 32

 

 

piece,   whichever

 

 

 

 

 

 

is higher”;

 

 

 

(xxxii)            against serial numbers 291, 292 and 293, in column (4), for the figures “10%”, the figures “20%” shall be substituted. 

 

[F. No. 354/123/2017-TRU (Pt.)] 

(Gunjan Kumar Verma)

Under Secretary to the Government of India

 

Note: The principal notification no.82/2017-Customs, dated the 27th October, 2017 was published vide number G.S.R.1341(E), dated the 27th October, 2017 and last amended by notification no. 53/2018-Customs dated the 16th July, 2018 published vide number G.S.R.651(E) dated the 16th July, 2018.

 


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