Why is it in the news ?

The Ministry of Commerce and Industry has allocated a separate Harmonised System (HS) code for Khadi.

What is HS Code ?

  • The Harmonised System, or simply ‘HS’, is a six-digit identification code developed by the World Customs Organization (WCO).
  • The system helps in harmonizing customs and trade procedures, thus reducing costs in international trade.

What are the Benefits of the move ?

  1. In 2006, the government had given the MSME-controlled Khadi and Village Industries Commission (KVIC) the Export Promotion Council Status (EPCS).
  2. Earlier, Khadi did not have its exclusive HS code. As a result, exports were difficult to categorize and calculate.
  3. Also, all the data regarding the export of this signature fabric used to come as a normal fabric under the textile head.
  4. In the coming years, the move is expected to boost Khadi exports.


World Customs Organisation

  • It was established in 1952 as the Customs Co-operation Council (CCC) is an independent intergovernmental body.
  • Its  mission is to enhance the effectiveness and efficiency of Customs administrations.
  • Today, the WCO represents 183 Customs administrations across the globe that collectively process approximately 98% of world trade.

Export Promotion Councils (EPC)

  • These are the Non-profit organisations registered as a company or society.
  • Their main task is promoting, supporting and assisting firms in entering the International markets and realising their optimum potential.
  • They also provide guidance and assistance to the exporters.
  • Each Export Promotion council is responsible for his particular group of products.