Recently, some media reported that India has increased the import tax on some textile and clothing products from 10% to 20%. After verification and confirmation by the CIRC, on August 7, India issued Customs Notice No. 58/2018, amending Customs Notice No. 82/2017, and plans to adjust tariffs on more than 300 types of carpets and clothing products, and increase tariffs on most products from 10%. to 20%, and the tariff on some products will be adjusted to 10%. In fact, India has successively issued notices on adjusting tariffs on textile and apparel products since October last year. I will collect and organize the previous notices as follows:
1. On October 27, 2017, India issued Customs Notice No. 80/2017, planning to increase import tariffs on textile and apparel products in Chapters 50-63 on a large scale, with the highest tax rate being raised to 25%. On the same day, India issued Customs Notice No. 82/2017, which plans to determine the tariffs for some products in Chapters 50-63. Most of them are 10%, and some are 20%.
2. According to Customs Notice No. 82/2017, India has made several adjustments and modifications after 2018:
(1) On January 5, 2018, India issued Customs Notice No. 01/2018, adjusting Article 157 of Notice No. 82/2017, the tax number is 60019200, and the tax rate is adjusted from 20% to 20% or specific tax ( 100/kg) whichever is higher.
(2) On February 2, 2018, India issued Customs Notice No. 14/2018, adjusting Article 2 of Notice No. 82/2017 to increase the tax rate on products under item 5007 from 10% to 20%.
(3) On July 16, 2018, India issued Customs Notice No. 53/2018, adjusting some provisions of Notice No. 82/2017 and reducing the tariffs on some products under Chapters 53, 56, 57, 59 and 61 from 10% increased to 20%.
(4) On August 7, 2018, India issued Customs Notice No. 58/2018 to adjust tariffs on nearly 300 types of carpet and clothing products in Chapters 57, 61 and 62. Among them, most tariffs on products related to the above three chapters have been increased from 10% to 20%; some tariffs on a small number of products such as: 5702, 5704, 6103, 6108, 6108, 6112, 6207, and 6214 have been adjusted to 10%.
3. It is reported that India has adjusted tariffs on textile and clothing products on a large scale in order to boost its manufacturing industry and create more jobs. However, none of the above-mentioned tariff adjustment notices clearly stated the specific implementation date. It can be seen that there is still great uncertainty in the import tariffs on Indian textile and apparel products.
Textile and apparel companies exporting to India are requested to pay close attention to the market situation. We will continue to track the trends in tariff policies for Indian textile and apparel products. If you have any questions, please feel free to contact us.
Contact person: Zhang Yi, Legal Department Tel: 010-67739254 Fax: 010-67739311
Attachment: Indian Customs Announcement No. 80/2017cs80-2017
India Customs Announcement No. 82/2017cs82-2017
India Customs Announcement No. 01/2018cs01-2018
India Customs Announcement No. 14/2018cs14-2018
India Customs Announcement No. 53/2018cs53-2018
India Customs Announcement No. 58/2018cs58-2018
Announcement link: http://www.cbic.gov.in/Excise-Notifications
