The Northern India Textile Manufacturers Association (NITMA) has praised the government’s decision to impose a 20 per cent or Rs 115 per kilogram BCD (Basic Customs Duty) on synthetic knitted fabrics under nine HS codes. The move targets under-invoiced fabrics entering the country, often through misdeclaration of HS codes to bypass the previously imposed Minimum Import Price (MIP) of $3.50 per kilogram. While the new BCD addresses 35 per cent of fabric imports, NITMA emphasizes that the remaining 65 per cent of imports are still unregulated.

Sidharth Khanna, President of NITMA, applauded the government for its efforts to ensure fair competition and curb smuggling but urged further measures. He called for the imposition of BCD across all HS codes under Chapter 60, encompassing synthetic knitted fabrics, as current regulations only cover a fraction of the imports. Khanna warned that importers may shift to other HS codes to circumvent the new duty, as seen with the previous MIP.

Additionally, NITMA advocates for enhanced surveillance at ports by the Directorate of Revenue Intelligence and Port Authorities to prevent misdeclaration of container details. The Enforcement Directorate and CBI are also encouraged to investigate under-invoiced imports over the past year, calling for stringent penalties on violators.

Khanna also expressed his satisfaction with the Union Budget for 2025-2026, highlighting a significant 58 per cent increase in the textile sector’s budget, particularly for the PLI scheme and the 5-year Cotton Mission. He noted that the tax relief for individuals earning up to Rs 12 lakh could boost consumer spending, positively affecting the entire textile value chain. However, he urged the government to extend the BCD across all HS codes under Chapter 60 to prevent further exploitation.