New Harmonised System Codes for GI-Tagged Rice

1. India has introduced new Harmonised System (HS) codes for Geographical Indication (GI)-tagged rice varieties to facilitate smoother exports.
2. This was achieved through an amendment to the Customs Tariff Act (1975), ensuring that GI-recognized rice can be exported without requiring special notifications from the Ministry of Finance.
    

Understanding the Harmonised System (HS)
 

1. What is the Harmonised System (HS)?

The Harmonised System (HS) is a globally recognized product classification system developed by the World Customs Organization (WCO). It serves as a standardized system for categorizing traded goods.

2. Structure of HS Classification

1. The HS assigns specific six-digit codes for various classifications and commodities.
2. Countries can further refine classifications by adding additional digits beyond the first six.

3. Governance and Updates

1. The HS system is governed by the International Convention on the Harmonized Commodity Description and Coding System.
2. The HS Committee, consisting of member countries, manages the classification system and updates it every 5–6 years to reflect trade developments.

4. Global Adoption and Implementation

1. The HS classification system is used in 98% of international trade.
2. It encompasses over 5,000 commodity groups.
3. More than 200 countries and economies have adopted the HS system for trade regulations.

5. Key Benefits of HS Codes

1. Provides a common coding method that helps countries organize and track products in global trade.
2. Extensively used by governments, international organizations, and private entities for trade policies, internal taxation, and market analysis.
3. Reduces international trade costs and supports economic research by enabling consistent and transparent classification of goods.
    

Significance of HS Codes for GI-Tagged Rice
 

1. The introduction of dedicated HS codes for GI-tagged rice will streamline exports and prevent administrative hurdles.
2. It will enhance India’s recognition in the global market for its unique and traditional rice varieties.
3. The amendment ensures that exporters no longer require special notifications, simplifying trade procedures.