**Executive Summary**
This notification issued by the Ministry of Finance (Department of Revenue) grants a temporary exemption from customs duty and the Agriculture Infrastructure and Development Cess for cotton imports. The exemption applies to goods classified under Heading 5201 and is issued in the public interest. The measure is effective from June 1, 2026, and will remain in force until October 31, 2026.
**Key Points / Main Content**
**Scope of Exemptions**
* **Goods Covered:** The exemption specifically applies to "Cotton" classified under Heading 5201 of the First Schedule to the Customs Tariff Act, 1975.
* **Customs Duty:** Provides a total exemption from the whole of the duty of customs leviable under the First Schedule to the Customs Tariff Act, 1975.
* **Agriculture Infrastructure and Development Cess (AIDC):** Provides a total exemption from the whole of the cess leviable under Section 124 of the Finance Act, 2021.
**Validity and Timing**
* **Effective Date:** The notification comes into force on June 1, 2026.
* **Expiry Date:** The exemption remains valid up to and including October 31, 2026.
**Legal and Regulatory Basis**
* **Authority:** The notification is issued by the Central Government under the powers conferred by Section 25(1) of the Customs Act, 1962, and Section 124 of the Finance Act, 2021.
* **Public Interest:** The Central Government stated its satisfaction that this exemption is necessary for the public interest.
**Impact Analysis**
**Cotton Importers and the Textile Industry**
**Impact**
Importers will experience a significant reduction in the cost of raw cotton imports due to the removal of both basic customs duty and the Agriculture Infrastructure and Development Cess.
**Action Required**
Stakeholders should plan their import logistics and customs filings to ensure goods are cleared between the effective dates of June 1, 2026, and October 31, 2026, to benefit from the tax relief.
**Customs Authorities**
**Impact**
Customs departments must adjust tariff applications and duty collection for goods under Heading 5201 during the specified five-month window.
**Action Required**
Update automated customs clearance systems and inform relevant port officials to ensure the zero-duty and zero-cess provisions are correctly applied to eligible cotton imports within the specified timeframe.
Key Entities Referenced
Customs Act, 1962: The primary legislation under which Section 25(1) empowers the Central Government to grant exemptions from customs duties in the public interest.
Finance Act, 2021: Legislation cited for Section 124, which governs the authority to levy and exempt the Agriculture Infrastructure and Development Cess.
Agriculture Infrastructure and Development Cess: A specific duty levied on imports that is fully exempted for cotton under this notification to reduce the tax burden on the commodity.
Customs Tariff Act, 1975: The statute providing the classification schedules (First Schedule) used to identify cotton under Heading 5201 for duty exemption eligibility.
Ministry of Finance (Department of Revenue): The primary government regulator responsible for issuing the notification and administering customs and tax exemptions.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-30052026-272963
CG-DxLx-xEG-I3D0H0x5x2x0 26-272963
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 379] नई दिल्ली, िजनिार, मई 30, 2026/ज्य ष्े ि 9, 1948
No. 379] NEW DELHI, SATURDAY, MAY 30, 2026/JYAISTHA 9, 1948
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
अजधसचू ना
नई दिल्ली, 30 मई, 2026
स.ं 19/2026-सीमा िल्ु क
सा.का.जन. 420(अ).— जित् त अजधजनयम, 2021 (2021 का 13) की धारा 124 के साथ पठित सीमा िुल्क
अजधजनयम, 1962 (1962 का 52) की धारा 25 की उप धारा (1) के तहत प्रित् त िजियों का प्रयोग करते हुए केन्द र सरकार,
इस बात से संतुष्ट होते हुए दक ऐसा करना िनजहत में आिश्यक ह,ै एतिद्वारा, नीचे िी गई सारणी के कॉलम (3) में उजल्लजखत
िस्ट् तुओं, िो दक उक्त सारणी के कॉलम (2) में जिजनर्ििष् ट सीमा िुल्क टैठरफ अजधजनयम, 1975 (1975 का 51) (इसके बाि
इसे 'सीमा िुल्क टैठरफ अजधजनयम' के रूप में िाना िाएगा) की प्रथम अनुसूची के िीर्िक के अतं गित आती हों, को िब भारत
में आयात हो, सीमा िल्ु क टैठरफ अजधजनयम की पहली अनुसचू ी के तहत उस पर लगाए िान े िाल ेसंपूण ि सीमा िल्ु क स ेऔर
जित्त अजधजनयम, 2021 (2021 का 13) की उक्त धारा के तहत उस पर लगाए िाने िाले संपणू ि कृजर् अिसंरचना एि ं
जिकास उपकर से छूट िेती ह,ै यथा: -
3865 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
सारणी
क्र. स.ं िीर्कि िस्ट्त ओंु का जििरण
(1) (2) (3)
1. 5201 कपास
2. यह अजधसूचना 1 िनू , 2026, से लाग ूहोगी और 31 अक्टूबर, 2026 तक, जिसमें यह तारीख भी िाजमल ह,ै लाग ू
रहगे ी ।
[फा. स.ं सीबीआईसी -190354/288/2021-टीओ(टीआरयू-I)]
धीरि िमाि, अिर सजचि
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 30th May, 2026
No. 19/2026-Customs
G.S.R. 420(E).— In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act,
1962 (52 of 1962) read with section 124 of the Finance Act, 2021 (13 of 2021), the Central Government, on being
satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description specified in
column (3) of the Table below, falling under the heading of the First Schedule to the Customs Tariff Act, 1975 (51
of 1975) (hereinafter referred to as the ‘Customs Tariff Act’), specified in the corresponding entry in column (2) of
the said Table, when imported into India, from the whole of the duty of customs leviable thereon under the First
Schedule to the Customs Tariff Act and from the whole of the Agriculture Infrastructure and Development Cess
leviable thereon under the said section of the Finance Act, 2021 (13 of 2021), namely: -
TABLE
Sl. No. Heading Description of Goods
(1) (2) (3)
1. 5201 Cotton
2. This notification shall come into force with effect from the 01st day of June, 2026, and shall remain in force
up to and inclusive of the 31st day of October, 2026.
[F. No. CBIC-190354/288/2021-TO(TRU-I)]
DHEERAJ SHARMA, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.