Govt proposes to reduce BCD on some items used in manufacturing apparel

Suresh Nair, partner at EY India, said that this will make exporters more competitive. "This is a positive move for exporters and it will definitely give exporters competitive edge in mkt," Nair said

In the Union Budget 2024-25, the government proposed to reduce basic custom duty on real down filling material from duck or goose and also made additions to the list of exempted goods for the manufacture of leather and textile garments, footwear, and other leather articles for export.

The government also changed the custom duty rate on spandex from 7.5 per cent to 5 per cent, wet white, crust, and finished leather for the manufacture of textile or leather garments, leather/synthetic footwear, or other leather products, for export to nil from 10 per cent, real down filling material from duck or goose for use in the manufacture of textile or leather garments for export from 10 per cent to 30 per cent, and also certain additional accessories and embellishments for the manufacture of textile or leather garments, leather/synthetic footwear will now have zero basic custom duty.

“The cost of manufacturing garments which use materials will come down by 4-5 per cent and if the exporter brings down his price, it will make him more competitive in the export market or else he will sit on a profit,” said Rahul Mehta, chief mentor for the Clothing Manufacturers Association of India.

Suresh Nair, partner at EY India, said that this will make exporters more competitive. “This is a positive move for exporters and it will definitely give exporters a competitive edge in the market,” Nair said.