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Duties Applicable on Textile and Apparel Products in India

Understand the custom and domestic duties on textiles and apparels in India, including duty calculations and changes in Central Excise Duty. Learn about duty rates on fibres, yarn, fabrics, and apparel, with detailed examples provided.

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Duties Applicable on Textile and Apparel Products in India

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  1. Duties Applicable on Textile and Apparel Products in India

  2. Contents Custom Duty Domestic Duty

  3. A. Custom Duty

  4. Custom Duty Calculation for Textiles and Apparels(Example to Illustrate Duty Calculation) Basic Custom Duty and Countervailing Duty varies for different textile & apparel products. Assumption: In below calculation, BCD and CVD are considered as 10% and 12.5% resp.

  5. Custom Duty on Fibres

  6. Custom Duty on Yarn Total Custom Duty on yarn is 29.441%. Exception: On HS line 5511, i.e. yarn of man-made fibres, Basic Custom Duty is 10% ad valorem or specific duty subjected to the condition of whichever is higher as given below:

  7. Custom Duty on Fabric Total Custom Duty on fabrics is 29.441%, if BCD and CVD are considered as 10% and 12.5% resp. and Specific Duty is not considered(except HS line 560490, where BCD is 12.5%). Basic Custom Duty on fabrics is 10%/12.5% ad valorem or specific duty subjected to the condition of whichever is higher as given below:

  8. Custom Duty on Apparel and Made-ups Total Custom Duty on apparel and made-ups is 29.441%, if BCD and CVD are considered as 10% and 12.5% resp. and Specific Duty is not considered. Basic Custom Duty on apparel and made-ups is 10% ad valorem or specific duty subjected to the condition of whichever is higher as given below:

  9. B. Domestic Duty

  10. Domestic Duty Calculation for Textiles and Apparels(Example to Illustrate Duty Calculation) Assume 10 tons of polyester filament yarn having assessable value of INR 100 per kg is sold by a seller with a profit of 5%. The Central Excise Duty and CST / VAT are considered as 12.5% and 5% respectively. *12.5% is for man-made staple fibre and filament ^VAT is levied by States and hence it varies

  11. Central Excise Duty on Apparels and Made-ups As per Union Budget 2016-17, following two changes have been made with respect to Central Excise Duty on apparel and made-ups products: The Central Excise Duty of 2% has been levied on branded apparel and made-ups products with retail price of more than INR 1,000. The tariff value of apparel and made-ups products has been changed to 60% of retail sale price. Thus, effective Central Excise Duty on branded apparel and made-ups products is 1.2%. For example: Consider a branded women top having retail sale piece of INR 2,000. Then, Central Excise Duty = INR (2% x 60% x 2,000) = INR 24 (i.e. 1.2%)

  12. Domestic Duty Applicable on Textiles and Apparel The duty applicable on textile and apparel products manufactured and sold in India is given below: ^VAT is levied by States and hence it varies *1.2% is for branded apparel and made-ups products with retail price of more than INR 1,000

  13. Thank You…!!

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