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A seperate Harmonized System (HS) code for Khadi - Diligent IAS

A seperate Harmonized System (HS) code for Khadi – Diligent IAS 07/11/2019 – Posted in: Daily News

Harmonized System (HS) code

The Ministry of Commerce and Industries has allocated a separate HS code for Khadi.

HS stands for Harmonized System and it is a six-digit identification code. It was developed by the WCO (World Customs Organization) and customs officers use HS Code to clear every commodity that enters or crosses any international border. Governments use HS codes and product descriptions to detect fraudulent activities.

Earlier, Khadi did not have its exclusive HS code. As a result, all the data regarding the export of this signature fabric used to come as a normal fabric under the textile head. In the absence of separate HS code, the export of Khadi products was difficult to categorize and calculate.

KVIC

The Khadi and Village Industries Commission (KVIC) is a statutory body formed by the Government of India, under the Act of Parliament, ‘Khadi and Village Industries Commission Act of 1956’.
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.

The objective of the commission

The Social Objective – Providing employment in rural areas
The Economic Objective – Providing saleable articles
The Wider Objective – Creating self-reliance amongst people and building up a strong rural community spirit.

Source: Money Control

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