Law Updates

The Ministry of Finance, Department of Revenue, has issued a notification on 18th August 2025 under the Customs Act, 1962 and the Finance Act, 2021. Through this notification, the Central Government has granted full exemption from customs duty and Agriculture Infrastructure and Development Cess on the import of cotton, classified under heading 5201 of the Customs Tariff Act, 1975. The decision has been taken in public interest to support domestic industries and ensure adequate raw material availability. This exemption will apply to all imports of cotton into India during the specified period. The notification clearly states that the exemption shall come into effect from 19th August 2025 and remain valid till 30th September 2025. By temporarily removing these duties, the government aims to ease pressure on the textile sector, stabilize raw material costs, and promote smooth supply chain operations in the cotton and allied industries during this period.