Boost For Khadi Exports: India’s Signature Fabric Acquires Unique World Customs Organisation Recognised HS Code

In a long-awaited development to boost exports of Khadi the Ministry of Commerce and Industry has allocated a separate HS code for the signature fabric of India, a government press release said.

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.

Khadi and Village Industries Commission (KVIC) Chairman Vinai Kumar Saxena said that this decision of the government will open a new chapter in the field of Khadi export. Earlier, Khadi did not have its exclusive HS code and as a result, all the data regarding the export of the fabric used to be lumped with other fabrics under the textile head.

Products from the KVIC 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 Ministry of Commerce had accorded deemed Export Promotional Council Status (EPCS) to KVIC in 2006. However, in the absence of separate HS code, the export of Khadi products was difficult to categorize and calculate.

With better data insights, the KVIC will be able to better plan its export strategy, Saxena said.