Khadi gets separate HS code

Khadi has been allocated a separate harmonised system code by the commerce and industry ministry, a move that is expected to boost its exports in the coming years.

Harmonised system (HS) is a six-digit identification code developed by the World Customs Organization (WCO) and custom officers use this code to clear every commodity that enters or crosses any international border.

Khadi and Village Industries Commission (KVIC) Chairman Vinai Kumar Saxena said this decision of the government will open a new chapter in Khadi export.

"Earlier, Khadi did not have its exclusive HS code. As a result, all the data regarding export of this signature fabric used to come as a normal fabric under the textile head. Now, we will be able to keep a constant eye not only on our export figures, but it will also help us in planning our export strategies," Saxena said.

In a statement, the micro, small and medium enterprises ministry said, "Khadi has once again come out of its customary veil, marking its presence in the exclusive HS code bracket, issued by the central government on November 4, 2019, to categorise its products in export".

The KVIC comes under the administrative control of the MSME ministry.

Khadi and Village Industries products are eco-friendly and natural, and are in great demand in the international markets. Recognising its potential to generate exports and its eco-friendly importance, the commerce ministry had accorded deemed Export Promotional Council status to the 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 categorise and calculate, the MSME ministry said.