Dear Sir/Madam,

Greetings from Confederation of Indian Textile Industry (CITI)!

This has reference to the import duty (5% customs duty, 5% Agriculture Infrastructure and Development Cess (AIDC) and 1% cess) applicable to cotton imports in India.

Based on the request of the industry and given the current production scenario, CITI and several other associations have been constantly requesting the Government regarding the removal of import duty from the cotton.

Based on the request of the industry, the Central Board of Indirect Taxes and Customs (CBIC) vide its notification no. 35/2025-Customs dated 18^th August 2025 has now removed the customs duty and AIDC levied on import of all varieties of cotton (HSN 5201) effective from 19^th August 2025 to 30^th September 2025.

It may be noted that this exemption also covers cotton in transit, as the taxable event for determining the rate of duty is the date of filing of the Bill of Entry, after the goods have entered the Indian port.

In cases where the Bill of Entry has been filed in advance (as permitted by Customs for faster clearance prior to the arrival of goods), the same can be withdrawn and re-filed afresh at the earliest i.e before the Out-of-Charge Order is issued for the imported cotton.

The detailed notification in this regard is attached for your kind reference.

Members may take note of the above and take benefit of the exemption provided by the Government.

Best Regards,

(Chandrima Chatterjee)

Secretary General