(Daily News Scan - DNS English) Harmonised System (HS Code)
Important Points:
India’s signature handspun and hand-woven cloth Khadi has been allocated a separate Harmonised System (HS) Code by the Ministry of Commerce and Industry.
In this DNS we will focus on Harmonised System and World Customs Organization
Harmonised System or HS is a six digit identification code developed by World Customs Organization (WCO). It is also known as the universal economic language for goods. This system is used by countries as a basis for their customs tariffs, gathering international trade statistics, making trade policies, and for monitoring goods. This system is helpful in harmonizing of customs and trade procedures which helps in reducing costs in international trade.
As per the website of WCO, the system comprises of 5000 commodity with HS code. Each commodity is identified by a unique six digit code that has numbers arranged in a legal and logical structure. The first two digits of the code define the Harmonised system chapter, the next two gives its heading and the last two gives the sub heading.
Earlier in 2006, the government had given MSME controlled khadi and village industries commission the export promotion council status. But the absence of Harmonised System code hindered khadi from achieving its full potential. Without the HS code khadi export were difficult to categorise and calculate. Without having a HS code, earlier it was difficult to track down the data regarding the export of khadi. It would appear as the sale for normal fabric under the textile head.
The latest move of giving Khadi HS code is expected to give a boost to khadi export in the coming years. This will help in keeping an eye on export figures plus it would be beneficial for planning export strategies for the future.
Now let us know few points about World Custom Organization-
- It was established in the year 1952 as the Customs Co-operation Council
- WCO is an independent intergovernmental body with the aim to enhance the effectiveness and efficiency of customs administration.
- This organisation plays an important role in discussion, promotion and implementation of modern custom system and procedures.
- It also plays an important role in stimulating growth of legitimate international trade and fight fraudulent activities.
