The Indian Government has raised basic customs duty on polyester fabric imports from 10 per cent to 20 per cent with effect from October 27, 2017.
A substantial drop in the import duty was observed after the implementation of GST. This encouraged cheaper imports of polyester fabric from neighbouring countries like China.
The Government’s move to hike the basic customs duty on polyester fabric and on the import of certain textile items has been welcomed by various textile trade associations of the country.
The Southern India Mills’ Association (SIMA) lauded the Union Finance Minister Arun Jaitley and the GST Council for the new rates. The body believes that this would eventually reduce the fabric import.
Earlier, the Polyester Fabric attracted 10 per cent basic customs duty, 12.5 per cent CVD and 4 per cent special additional duty in the pre-GST era.
The move would consequently encourage ‘Make in India’ programme of the Government, feels SIMA.
The association feels the import duty on cotton fabric should also be raised in the interest of powerloom and handloom sectors.
Confederation of Indian Textile Industry (CITI) has also appreciated the increase in basic customs duty on import of certain textile items. It has come as a big relief to the manmade fibre-based fabric manufacturers, it added.
