Government has fully exempted raw cotton from custom duties w.e.f. 8th July, 2008. The drawback benefit on export of raw cotton has also been withdrawn w.e.f. 8th July, 2008.

>>>	Customs - Notification No. 84/2008-Cusdated -08-07-2008
	Amends notification No. 21/2002-Customs, dated the 1st March, 2002 (Exemption and effective rate of basic and additional duty for specified goods of Chapter 1 to 99)

 

>>>	Customs - Notification No. 86/2008-Cus(NT)dated -08-07-2008
	Amends notification vide number G.S.R. 485 (E), dated the 16th July, 2007 (Determines the rates of drawback as specified in the Schedule)

 

Raw cotton exemption removes customs duty and withdraws drawback benefit, changing import-export duty treatment for affected traders. Full exemption of raw cotton from customs duties was instituted by amending the exemption schedule, removing basic and additional customs duty applicability to raw cotton and making it duty-free on import. Concurrently, the export drawback benefit for raw cotton was withdrawn by amending the schedules that determine drawback rates, eliminating the prior drawback entitlement on exports of raw cotton.