Economy News

SEPARATE HS CODE FOR KHADI

Written by Talent KAS

Related Topic in KAS Prelims Syllabus:

Economy [Paper-II]: Small-scale sector, India’s Foreign Trade

News

To make export exclusively categorized from the general league of textile products, Ministry of Commerce and Industries has allocated separate HS code for Khadi, the signature fabric of India.

Need for HS Code

  • Khadi and Village Industries products are eco-friendly and natural, and are in great demand in the International Markets.
  • Recognizing its potential to generate exports and its eco-friendly importance, the Ministry of Commerce had accorded deemed Export Promotional Council Status (EPCS) to Khadi and Village Industries Commission (KVIC) in 2006.
  • The status was given mainly to boost the export of Khadi products.
  • However in the absence of separate HS code, the export of Khadi products was difficult to categorize and calculate.

What is HS code?

  • HS Stands for Harmonized System and it is a six digit identification code.
  • It was developed by the WCO (World Customs Organization).
  • Custom officers use HS Code to clear every commodity that enters or crosses any international border.

[Source: Business Standard]

 

About the author

Talent KAS