GOI Increases Basic Duty on Polyester Fabrics

India News

GOI Increases Basic Duty on Polyester Fabrics


November 14, 2017



The Government of India has increased basic customs duty on polyester fabric from 10 to 20% with effect from October 27, 2017. After implementation of the GST, there was a significant drop in the import duty that threatened the survival of the domestic manufacturing industry due to cheaper imports from countries like China.In the pre-GST regime, polyester fabric attracted 10% basic customs duty, 12.5% countervailing duty (CVD) and 4% Special Additional Duty. With the implementation of the GST from July 1 this year, CVD was replaced with IGST and the Special Additional Duty was scrapped. Consequent to the scrapping of 4 per cent Additional Duty and levy of 5 per cent GST on polyester fabric, the imported polyester fabric attracted 10 per cent basic customs duty and 5 per cent IGST.

Appreciating the revision (upward) of customs duty on import of textiles goods from other countries, the Confederation of Indian Textile Industry (CITI) chairman Sanjay K Jain said, "It's a very positive and welcome step by the Government of India and will go a long way in fulfilling the Make in India, Skill India and India as a Global Textile Hub, initiatives of the Prime Minister of India."