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 7^th 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 27^th of October, 2017, published in the Gazette of India, Extraordinary vide number G.S.R.1341 (E), dated the 27^th 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%”;

(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%”;