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