Home / Knowledge / News / Textiles / New duty rules by Indian customs worry garment manufacturers
New duty rules by Indian customs worry garment manufacturers
Sep '08
The domestic ready made garment manufacturers may have to face new hurdles put up by Indian customs, according to which, Nepali exporters will now have to pay customs duty based on the maximum retail price (MRP) instead of the invoice rate. As a result, the shipment of garments has come to a halt.

Fibre2fashion contacted Mr Uday Raj Pandey, Vice President, Garment Association of Nepal (GAN), to learn more about the present state of exports who stated, “As per the trade agreement between India and Nepal there is zero percent trade duty, even the garment sector is free from it. However, since two years, Indian Custom Department has started imposing custom duty on transaction value or Counter Value Duty (CVD).

“We want Indian Customs not to further impose export duty as already there is 4 percent custom duty on cotton garments and 6 percent on Polyester made clothing. From past 10 days the Customs has started imposing duty on MRP and not on FOB or transaction value. Right now garments worth nearly 5 million are lying in custom hassles.”

The MRP is always higher than the invoice rate, the price at which producers deliver the products. The change in the base price has suddenly risen the volume of the duty by two to three times.

While talking about the consequences, Mr Pandey divulged, “Indian importers are likely to opt for other countries like Bangladesh, or they might try to source garments from within the country.”

The exporters are worried as the Indian customs has also said that they would accept the laboratory test results of New Delhi-based quality certifiers only. However, earlier test certificates of Kolkata, Patna and nearby laboratories were also accepted. This new rule will only make delay in the consignment delivery time.

As the demand for denim, corduroy, linen, viscose and polyester garments had increased by manifolds in Indian market, the Nepali garment industry, which was on the verge of collapse, started receiving export orders in bulk from India, helping it to revive once again. Major retailers like Big Bazar, Pantaloon, Peter England and John Players had also started importing garments from Nepal.

However, now the manufacturers of ready to wear garments are looking forward for some relief from the Indian customs for easing the new regulations.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Li & Fung

Textiles | On 24th Mar 2017

Li & Fung forms new supply chain partnership with PVH Corp

Li & Fung Limited, the world's leader in consumer goods design,...

Courtesy: Alizilla

Apparel/Garments | On 24th Mar 2017

Alibaba's eWTP finds first overseas base in Malaysia

In a step towards using the internet to bring small businesses around ...

Textiles | On 24th Mar 2017

BJMC to produce cotton-jute blended denim fabrics

To meet demand from the market, Bangladesh Jute Mills Corporation...

Interviews View All

Victor Chao

‘In future, clothing boundary lines will become increasingly blurred.’

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search