Govt. Grants Temporary Customs Duty Exemption on Cotton Imports Till Sept 30, 2025

The Ministry of Finance (Department of Revenue) has recently issued an official notification (No. 35/2025-Customs) dated August 18, 2025, informing that the Central Government has temporarily exempted cotton imports from customs duty and Agriculture Infrastructure and Development Cess and is satisfied that it is important for the public interest, meaning it is beneficial for the country or its people.

The goods covered here are identified by their “heading” under the Customs Tariff. In this notification, the heading number 5201 corresponds to “Cotton.” The exempted good, i.e., cotton, falls under the heading given in the Customs Tariff Act, 1975 (law number 51 of 1975), which lists all items and their tariff codes.

The government has taken this action in exercise of its powers granted under subsection (1) of section 25 of the Customs Act, 1962 (which is law number 52 of 1962) and section 124 of the Finance Act, 2021 (law number 13 of 2021).

Cotton is exempted from customs duty (tax normally charged on imported goods) and Agriculture Infrastructure and Development Cess (additional tax charged under the Finance Act, 2021).

This tax exemption will be made effective from August 19, 2025, and will continue to be in force until September 30, 2025.