Summary: The Ministry of Finance (Department of Revenue) has issued Notification No. 35/2026-Customs dated 30 October 2026, extending the exemption from Basic Customs Duty (BCD) and Agriculture Infrastructure and Development Cess (AIDC) on cotton imports until 31 December 2026. Issued under Section 25(1) of the Customs Act, 1962, read with Section 124 of the Finance Act, 2021, the notification amends Notification No. 19/2026-Customs dated 30 May 2026, which originally granted full exemption from these duties on cotton falling under Customs Tariff Heading 5201 for the period from 1 June to 31 October 2026. The latest amendment substitutes the original expiry date of 31 October 2026 with 31 December 2026, thereby extending the existing exemption by two months without changing the covered goods or the scope of the duty relief. The exemption applies to imports of cotton classified under Heading 5201 and covers the whole of the customs duty leviable under the First Schedule to the Customs Tariff Act, 1975, together with the applicable AIDC. The original measure was introduced to ensure adequate cotton availability during the off-season, moderate raw-material costs, support textile manufacturers and MSMEs, and improve the competitiveness of India’s textile industry while balancing farmers’ interests. The extension provides continued duty relief to eligible cotton importers, spinning mills and textile manufacturers through December 2026. Importers should verify tariff classification, eligibility and the applicable exemption notification when filing Bills of Entry. The revised exemption remains effective up to and including 31 December 2026.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 35/2026-Customs | Dated: 30th October, 2026
G.S.R. 960(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 makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 19/2026-Customs, dated the 30th May, 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 420(E), dated the 30th May, 2026, namely: –
In the said notification, in paragraph 2, for the figures and words “31st day of October, 2026”, the figures and words “31st day of December, 2026” shall be substituted.
[F. No. CBIC-190354/288/2021-TO(TRU-I)]
DHEERAJ SHARMA, Under Secy.
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Ministry of Textiles
Government temporarily exempts Customs duty on Cotton Imports from 1 June to 31 October 2026, balancing the interests of farmers and Textile Industry
Posted On: 30 MAY 2026
Keeping the interests of cotton farmers and the entire cotton value chain at the forefront, the Government of India has adopted a proactive and balanced approach by temporarily exempting customs duties on cotton imports from 1 June to 31 October 2026.
The measure, implemented during the cotton off-season, will ensure adequate availability of cotton for the textile industry, support MSMEs, moderate input costs, and strengthen the competitiveness of Indian textiles—while safeguarding farmers’ interests and ensuring market stability.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 19/2026-Customs | Dated: 30th May, 2026
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: –
| 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.
