Indian Raised Import Duty on Textile Products

The Indian government has increased import duty on 76 textile and apparel items at 6-digit level like jackets, suits and carpets -- to 20 percent, a move that is aimed at protecting the domestic manufacturers from cheap imports from countries like China, Vietnam, etc.

Around $1.6 billion worth of man-made filaments and man-made staple fibre products were imported into India during 2017-18 alone. Imports of textile yarn, fabric, made-up articles grew by 8.58 percent to $168.64 million in June.

In case of PFY, NFY and VFY the imports have gone up by 13 per cent, 3 per cent and 38 per cent respectively. In case of import of polyester spun yarn, viscose spun yarn and nylon spun yarn the increase was 94 per cent, 526 per cent and 15 per cent respectively which is impacting domestic man-made fibre and MMF yarn manufacturers in a big way.

The duty has come into effect from July 16, 2018. The imported products which will become expensive include woven fabrics, dresses, trousers, suits and baby garments.

In case of MMF based fabrics, Government had increased customs duty from 10 per cent to 20 per cent in October 2017. However, important tariff lines in the knitted fabrics segment such as 60011020, 60059000 and 60069000 were left out through which substantial imports still continue. Therefore, duties on these three fabric lines also need to be increased to 20 per cent, he said.

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