Answer Writing Practice for UPSC IAS & UPPSC Mains Exam: Paper - IV (General Studies – III) - 29 November 2019

Answer Writing Practice for UPSC IAS Mains Exam

Answer Writing Practice for UPSC IAS & UPPSC Mains Exam

UPSC Syllabus:

  • Paper-IV: General Studies -III (Technology, Economic Development, Bio-diversity, Environment, Security and Disaster Management)

Q. Define the Harmonized System Code (HS Code). Explain how the HS Code would boost Khadi exports in the coming years? (150 words)

Model Answer:

  • Why in News?
  • Introduction: Harmonized System Code (HS Code)
  • Boost to Khadi exports due to HS Code
  • Conclusion

Why in News?

Recently, the Ministry of Commerce and Industry allocated a separate Harmonized System (HS) Code for Khadi.

Introduction: Harmonized System Code (HS Code):

The Harmonized System (HS Code) is a six-digit identification code developed by the World Customs Organization (WCO). The HS Code is also known as the “universal economic language” for goods. It is a multipurpose international product nomenclature.

The system helps in harmonizing customs and trade procedures, thus reducing costs in international trade. At present, over 200 countries use the system as a basis for their customs tariffs, gathering international trade statistics, making trade policies, and for monitoring goods.

Boost to Khadi exports due to HS Code:

  • The absence of the HS Code made the export of khadi difficult to achieve its full potential, as its exports were difficult to categorize and calculate.
  • The Export Promotion Council Status (EPCS) was given to the Micro, Small and Medium Enterprise (MSME) in 2006, to control Khadi and Village Industries Commission (KVIC).
  • The export of Khadi and its products were difficult in big number due to the absence of the unique HS Code.
  • The latest move is expected to help resolve this issue.
  • In the absence of the HS Code for Khadi, the data regarding the export of this fabric used to come as a normal fabric under the textile head. Now it would be calculated separately.


International Market has a great demand for Khadi and Village Industries products because these products are eco-friendly and natural. The recent decision of the government would open a new chapter in Khadi export and it will also help towards planning export strategies.

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