India’s ministry of commerce and industry has issued a notification making some changes in ITC HS codes to sync with Finance Act, 2022. The government had proposed these changes in Union Budget 2022-23. HS codes related to yarn, fibre, garments and some other goods are amended. GI patented Lucknow chikan craft will be now referred to as embroidery.

The government made changes in textiles sector’s most important chapter 62 which covers cotton garments. Changes have also been made under HS codes 54 (polyester), 55 wood fibre (viscose), 56 man-made filaments, 58 cotton embroidery, 59 (geo-technical textile- knitted or woven) and 60 synthetic fibres.

The Harmonised Commodity Description and Coding System generally referred to as ‘Harmonised System’ or simply ‘HS’ is a multipurpose international product nomenclature developed by the World Customs Organisation (WCO). These are 6-digit codes which cannot be altered unilaterally by any country. But the 8-digit code (after adding 2 digits at the end) can be changed.

In India, the 8-digit codes known as ITC (HS) code/Indian Trade Classification/ Indian Tariff Code are developed and maintained by the Directorate General of Foreign Trade.

The ministry had issued the notification last week for syncing of ITC (HS), 2022- Schedule-1 (Import policy) with the Finance Act, 2022. The notification to introduce, delete, amend, split or merge ITC (HS) codes has come into effect immediately.