Increasing the basic Customs duty on imported polyester fabrics from 10 per cent to 20 per cent, The Southern India Mills Association (SIMA) today thanked the Union finance and textile ministers and GST council for the announcement.
SIMA chairman P Natarajan said, “Since man-made fibre price in India cost 20 to 30 per cent more due to high incidence of duties and levies, there was a threat of cheaper imports especially from countries like China. The increase in basic Customs duty would reduce imports as there was a need to increase the import duty on cotton fabric also on par with polyester fabric in the interest of powerloom and handloom sectors to sustain their competitiveness.”
Therefore, there was a significant drop in the import duty threatening the survival of the domestic manufacturing industry due to cheaper imports especially from countries like China.
Consequent to the scrapping of 4 per cent additional duty and levy of 5 per cent of GST on polyester fabric, the imported polyester fabric attracted 10 per cent basic Customs duty and 5 per cent IGST. Thus, the industry had represented to the Centre and the GST Council to increase the basic Customs duty on fabrics to retain the competitiveness of the domestic manufacturing industry, Natarajan said.
– Apparel and Textile News, Apparel Talk, Indian Apparel
