Khadi has once again come out of its customary veil, marking its presence in the exclusive HS code bracket, issued by the Central Government on  November 4  to categorize its products in export.

In  a long awaited move to make export of Khadi, exclusively categorised from the general league of textile products, the Ministry of commerce and industries has allocated separate HS code for this signature fabric of India this week.

Khadi and Village Industries Commission (KVIC) Chairman Vinai Kumar Saxena said that this decision of  the Modi Government  will open a new chapter in the field of Khadi export.

 “Earlier, Khadi did not have its exclusive HS code. As a result, all the data regarding export of this signature fabric used to come as a normal fabric under the textile head. Now, we will be able to keep a constant eye not only on our export figures, but it will also help us in planning our export strategies” he said.

Khadi and Village Industries products are eco-friendly and natural, and are in great demand in the International Markets. Recognising its potential to generate exports and its eco-friendly importance, the Ministry of Commerce had accorded deemed Export Promotional Council Status(EPCS) to KVIC in 2006, to boost the export of Khadi products. However in the absence of separate HS code, the export of Khadi products was difficult to categorize and calculate.

The Ministry of Commerce and Industry in a letter dated  November 4, KVIC Chairman said that, “The request for separate tariff lines for Khadi items was taken up by the Ministry of Commerce with the department of revenue, Ministry of Finance. Vide their letter dated 25.10.2019, Ministry of Finance had intimated that upon examination of proposals received from the KVIC, 11 items out of 22 items as requested were found feasible for creation of tariff lines by CBIC. Accordingly vide Section 88(b) of 5th  schedule of finance(No.2) Act 2019(23 of 2019) separate tariff lines for Khadi products such as Khadi Jackets, Khadi Ensembles etc. have been created. “.

In addition definition of ‘Khadi’ has also been included in the supplementary notes of customs’ tariff.

Referring to the benefits of the move Saxena said, “With this new initiative of the Ministry of Commerce, not only the Khadi products will get boost in exports, but it will also open up livelihood opportunities for the Khadi artisans engaged in development of Khadi.”

Published On : 08-11-2019

Source : Daily Pioneer