Khadi has been given exclusive HS code bracket, issued by the central government on 4th Nov’19 to categorize its products in export. In a long awaited move to make export of Khadi, exclusively categorized from the general league of textile products, the ministry of commerce and industries has allocated separate HS code for this signature fabric of India.
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) and custom officers use HS Code to clear every commodity that enters or crosses any international border.
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 KVIC in 2006, 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.
Relevant for GS Prelims