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Khadi gets HS code

  Aug 05, 2020

Khadi gets HS code

What is this HS Code?

The Harmonized System, or simply ‘HS’, is a six-digit identification code developed by the World Customs Organization (WCO). Called the ‘universal economic language’ for goods, it is a multipurpose international product nomenclature. Over 200 countries use the system as a basis for their customs tariffs, gathering international trade statistics, making trade policies, and for monitoring goods. The system helps in harmonizing of customs and trade procedures, thus reducing costs in international trade.

Of the six digits, the first two denote the HS Chapter, the next two give the HS heading, and the last two give the HS subheading.

The HS code for pineapple, for example, is 0804.30, which means it belongs to Chapter 08 (Edible fruit & nuts, peel of citrus/melons), Heading 04 (Dates, figs, pineapples, avocados, etc. fresh or dried), and Subheading 30 (Pineapples).

What does this mean for Khadi?

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 that Khadi has its own exclusive HS It will help in monitoring export figures of Khadi explicitly, also help KVIC in planning export strategies. The move is expected to boost Khadi exports in the coming years.

Earlier, the government had given the MSME-controlled Khadi and Village Industries Commission (KVIC) the Export Promotion Council Status (EPCS). Yet, the absence of a separate HS code hindered Khadi from achieving its full potential, as its exports were difficult to categorize and calculate. The latest move is expected to help resolve this issue.

It would open a new chapter in Khadi export

What is Khadi?

Khadi means handspun and handwoven cloth. usually from cotton fiber. However, contrary to popular belief, khadi is also manufactured from silk and wool, known as khadi silk or woolen khadi respectively. The fabric is known for its rugged texture, comfortable feel and ability to keep people warm in winter while keeping them cool during the summer. 

In 1918 Mahatma Gandhi started his movement for Khadi as relief programme for the poor masses living in India's villages. Spinning and weaving was elevated to an ideology for self-reliance and self-government. Thus, it was made iconic by Gandhi by linking it to freedom movement.

What does KVIC do?

The Khadi and Village Industries Commission (KVIC) is a statutory body established by an Act of Parliament in 1957.

Objectives 

• The social objective of providing employment.

• The economic objective of producing saleable articles.

• The wider objective of creating self-reliance amongst the poor and building up of a strong rural community spirit.

Functions
The KVIC is charged with the planning, promotion, organization and implementation of programs for the development of Khadi and other village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.