NEWS BRIEFS
24x7 Clearance at the
Customs
The Central Board of Indirect Taxes &
Customs (CBIC) has issued an In-
struction No.02/202-Customs dated
20.2.2020 to all the Customs to intro-
duce 24x7 clearance at all the Cus-
toms formations.
This instruction has been issued
keeping in view the likely surge in
imports from and export to China
once the spread of coronavirus is
brought fully under control. It will re-
main in operation till the end of May
2020.
However, designated Sea Ports/Air-
ports already under 24x7 operation
shall continue to function even after
May 2020.
Customs instructions are reproduced
below:
Due to ongoing shutdown in China on
account of Coronavirus outbreak,
there is an apprehension of disruption
in supply of raw materials/ inputs to
our industrial units which were depen-
dent on these raw materials. There
could also be a dip in offtake in ex-
ports to China. On the contrary, there
is a strong likelihood of an immediate
surge in the imports from and export
to China once the spread of the virus
is brought fully under control.
To handle such emergent situations,
necessary steps need to be taken in
advance. CBIC has, therefore, decided
to introduce 24x7 clearance at all the
Customs formations. so as to address
any congestion or delay or surge on
account of the prevailing conditions
or cessation thereof. These instruc-
tions would remain in operation till end
of May 2020 by which time the dis-
ruptions in the supply chains are ex-
pected to have settled. CRCL labs
would also function 24x7 so that test
results could be made available at the
earliest. However, designated Sea
Ports/Air ports already under 24x7
operation shall continue to function so
even after May, 2020.Chief Commissioners are therefore
requested to immediately workout the
arrangement and deployment of suf-
ficient number of officers on 24x7
basis at sea ports/Air Cargo Stations/
ICDs/CFSs etc falling in their jurisdic-
tion to tackle any incipient instance
of congestion/surge. A record may be
maintained of the BEs/SBs filed be-
yond the normal office hours, station
wise, and reported to Board daily at
[email protected].
Suitable Public Notice/Standing Order
may be issued.
(Vineeta Sinha)
OSD (Customs)
Tax on Cotton and Man-
Made Fibres
GST on cotton is 5% across the en-
tire textiles value chain whereas GST
rates on manmade fibres (MMF) and
textiles are 18%, 12%, and 5% on fi-
bre, filament yarn/spun yarn and fab-
rics respectively. The matter of imple-
mentation of a uniform tax structure
for the MMF value chain (from feed-
stock to fabric) was already referred
to Ministry of Finance to correct in-
version in duty structures. Rational-
ization of GST on MMF value chain
will help to boost growth of the MMF
sector.To boost exports in textile sector in-
cluding cotton clothing, Government
has introduced the new RoSCTL (Re-
bate of State and Central Taxes and
Levies) scheme from 7th March 2019.
Government has also notified a spe-
cial one-time additional ad-hoc incen-
tive of upto 1% of FoB value to be
provided for exports of apparel and
made-ups to offset the difference be-
tween RoSCTL and RoSL + MEIS at
the rate of 4%, from 7.3.2019 to
31.12.2019.
To boost exports in MMF sector, Gov-
ernment has also removed anti-dump-
ing duty on PTA, a key raw material
for the manufacture of MMF fibre and
yarn. Exporters are also provided as-
sistance under Market Access Initia-
tive (MAI) Scheme. Interest equaliza-
tion rate for pre and post shipment
credit for exports by MSMEs of tex-
tile sector has been enhanced from
3% to 5% from 2.11.2018.
Benefits of Interest Equalization
Scheme has been extended to mer-
chant exporters from 2.1.2019 which
was earlier limited to only manufac-
turer exporters.
This information was given by the
Minister of Textiles, Smriti Zubin Irani,
in a written reply in the Lok Sabha on
March 13, 2020.
CCI introduces Bulk Quantity Discount Scheme
for 2018-19 stock
CCI has introduced Bulk Quantity Discount scheme for 2018-19 stock with
effect from 2nd March 2020 to give an impetus to Indian cotton Industry to
regain and increase its share of exports in international trade.
The scheme offers an attractive discount of Rs.4400 per candy on purchase
of 10000 bales a day and also Rs.3200 per candy even for a small quantity of
500 bales whereas MSME, KVIC & Cooperative Mills would be entitled to a
minimum discount of Rs.3200 per candy even on purchase of one lot a day.
Since this scheme is for a limited period upto 30th April 2020 on first come
first served basis, therefore Textile mills are requested to hurry up to avail the
benefit of the scheme and cover their cotton requirement at the earliest.
The details of the scheme and it's terms & conditions, as per the CCI, are
given below:
NCM-MARCH 2020
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