792-Dr. J. K. Patel Institute Of Management - Gujarat Technological ...

Agreement on Textile & Clothing. It provides elimination of Quota system of
Textiles & Apparel from 1st January 2005.
Under Indo-US Agreement of 1st January 1995, India agreed to reduce tariffs
on Textile & apparel and remove all the restrictions on these products.
From 1st April 2000, Govt. Of India reduced tariffs on: . Manmade Fibers &
Filament Yarns from 35% to 20% · Cotton Yarn from 25% to 20% · Spun,
Blended, and Woolen Yarn from 40% to 20 %
India agreed to bind its tariffs on 265 textile & apparel products (Textured
Yarns of Nylon & Polyester, Filament Fabrics, Sportswear, and Home
Textiles.)
Apparel products are free from Excise Duties & various Taxes.
Customs duty on Polyester Filament Yarns is reduced from 10% to 7.5%.
Duty on other Filament yarns will be remain at 10%.
Customs duty on Polyester Staple fibers is reduced from 10% to 7.5%. Duty
on other Man Made Staple fibers will be remain at 10%.
Customs duty on Raw Materials such as DMT, PTA and MEG reduced from
10% to 7.5%.
For Small Scale Industries there is Full Exemption Limit being increased from
Rs.1 crore to Rs.1.50 crores.
Most of the products fall under HS code 61 and 62 carry an import duty of
56.83% which includes 30% basic duty, 16% additional duty and 4 per cent
special additional duty.
Excise duty on Nylon Chips has been reduced from 16% to 12%.
Optional excise duty on Nylon Fish Net Fabrics is increased from 8% to 12%.
Excise Duty Exemption on specified Textile Machinery Items is withdrawn
and 8% Excise Duty is imposed.
CST rate reduced from 4% to 3% with effect from April 1, 2007.
Removal of surcharge on income tax on all firms and companies with a
taxable income of Rs.1 crore or less.
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