On 29 April 2010, vide Notification No. 55/2010, the Government of India exempted Acetate Rayon Tow from additional duty leviable under Section 3(5) of the Customs Tariff Act, 1975. 
Section 3(5) provides for the levy of additional duty, at a rate not exceeding 4%, to counter-balance sales tax, value added tax, local tax or other charges leviable on like local products. 
The exemption for acetate rayon tow used in the manufacture of cigarette filter rods is intended to correct the existing inversion in duty rates caused by 10% excise duty on filter rods.