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Mehak Ahuja (Lawyer)     06 August 2011

Customs on readymade garments

I was looking for the customs tariff rules on import of readymade garments. Here I have found several conflicting information. Can someone help me to clear the tariff rules on that:

First information source: Customs Manual 2011: It seems to allow the import of readymade garments at either fixed tariff amounts or custom duty of around 10-15% of the CIF value.

Second Source: Basis of levy of additional Customs duty (CVD) on import of Readymade Garments – Clarification - regarding Circular No.: 12/2010-Cus


Looking at the conflicting information, I am not sure, what is valid. Aditionally it would be great if you could put some light on the policy of the customs on import of readymade garments. I am aware that the government would like to promote the local industry, rather than importing. But still, is it allowed to import readymade garments and what is the customs duty tariff used for that.

Thanks



Learning

 2 Replies

Mehak Ahuja (Lawyer)     07 August 2011

One clarifying thing: Basis of levy of additional Customs duty (CVD) on import of Readymade Garments – Clarification - regarding Circular No.: 12/2010-Cus

 

Does this circular decides over the base of the duty to be calculated, i.e. 60% of the MRP instead of the CIF value? Would this mean that both the information sources are correct where the duty tariff is as given in the Import Tariff Chapter 62 and the base for the calculation of the duty is given in the circular.

Thanks for a few clarifying words.


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