Executive Summary:
This trade notice from the Directorate General of Foreign Trade (DGFT) concerns the notification of new Harmonized System Nomenclature (HSN) codes for technical textiles items. It references DGFT Notification No. 20201520 dated 07.07.2022, which amended the ITCHS 2022, Schedule 1 Import Policy. The notice reiterates the importance of using specific HSN codes for Man Made Fibre (MMF) and Technical Textiles for import/export filings. Trade and Industry members are requested to suggest appropriate HS Codes at the 8-digit level if the existing 32 HSN codes are insufficient.
Key Points / Main Content:
* **Background and Context:**
* Refers to DGFT Notification No. 20201520 dated 07.07.2022, which amended ITCHS 2022, Schedule 1 Import Policy in sync with Finance Act, 2022.
* The amendment introduced 32 new HSN codes for Technical Textiles under specified chapters of ITCHS 2022, Schedule 1 Import Policy.
* These codes relate to the Production Linked Incentive (PLI) Scheme for Textiles, focusing on MMF and Technical Textiles.
* **Issue Identification:**
* Imports/exports of Technical Textiles are not consistently booked under the correct HSN codes.
* Trade is often booked under other available or "Others" category codes.
* **Directive and Clarification:**
* Importers/exporters must file Bills of Entry/Shipping Bills using specific HSN codes for MMF and Technical Textiles at the 8-digit level under ITCHS 2022, Schedule 1 Import Policy.
* Avoid using other or "Others" category codes.
* Annexure I provides a list of 32 HSN codes for Technical Textiles.
* **Call for Feedback:**
* If the existing 32 HSN codes are insufficient, Trade and Industry members should suggest appropriate 8-digit HSN codes.
Impact Analysis:
Trade and Industry Members:
* Impact: Need to accurately classify and report imports/exports of Technical Textiles using the specified HSN codes. Potential need to review current classification practices and align with the new requirements.
* Action Required: File Bills of Entry/Shipping Bills with specific HSN codes. Suggest new HSN codes if the existing list is insufficient.
EPCs, Trade and Industry Associations, Other Industry Bodies:
* Impact: Required to disseminate the information to their members and ensure compliance.
* Action Required: Inform members about the new HSN codes and the requirement for accurate classification.
Regional Authorities (RAs) of DGFT:
* Impact: Responsible for enforcing the correct usage of HSN codes and addressing any discrepancies.
* Action Required: Monitor import/export data for compliance and address any issues related to misclassification.
Customs Commissionerates:
* Impact: Need to ensure that imports/exports are correctly classified based on the specified HSN codes.
* Action Required: Verify the accuracy of HSN codes in Bills of Entry/Shipping Bills and enforce compliance.
Joint Secretary (Customs), CBIC, Deptt. of Revenue:
* Impact: Oversight of customs procedures and ensuring compliance with trade regulations.
* Action Required: Support the implementation of the new HSN codes and address any policy-related issues.
Key Entities Referenced
Directorate General of Foreign Trade: An organization under the Ministry of Commerce and Industry, Government of India, responsible for implementing the foreign trade policy.
Ministry of Commerce and Industry: A ministry of the Government of India responsible for the development and regulation of international trade and commerce.
New Delhi: The location of Vanijya Bhawan, where the Directorate General of Foreign Trade is situated; the capital of India.
Finance Act, 2022: A legal document that amended the ITCHS 2022, Schedule 1 Import Policy.
ITCHS 2022, Schedule 1 Import Policy: The Indian Trade Classification based on Harmonized System of Coding, Schedule 1 Import Policy, which was amended by the Finance Act, 2022.
Ministry of Textiles: A ministry that was consulted regarding the correct HS codes for imports/exports of Man Made Fibre and Technical Textiles.
PLI Scheme: Production Linked Incentive Scheme notified by the Ministry of Textiles for Textiles covering Man Made Fibre (MMF) and Technical Textiles.
CBIC: Central Board of Indirect Taxes and Customs; mentioned in context of Joint Secretary Customs, CBIC, Deptt. of Revenue
URd UHR/Government of India
alftrea Ud Sart HATAa/Ministry of Commerce & Industry
arftrsa fayrt/Department of Commerce
fez AOR HeleRaa/Directorate General of Foreign Trade
alftrea uaa, as feet /Vanijya Bhawan,New Delhi
Dated:. 17"" April, 2023
Trade Notice No. 02/ 2023-24
To
1. Members of Trade and Industry
2. All EPCs / Trade and Industry Associations/Other Industry Bodies
3. All Regional Authorities (RAs) of DGFT
4. Customs Commissionerates
5. Joint Secretary (Customs), CBIC, Deptt. of Revenue
Subject: Notification of New HSN Codes for Technical Textiles items — regarding.
Reference is invited to DGFT Notification No. 20/2015-20 dated 07.07.2022
whereby ITC(HS) 2022, Schedule 1 (Import Policy) was amended in sync with Finance
Act, 2022 dated 30.03.2022, introducing newly created/deleted/merged/split |TC(HS)
codes.
2. Through the said Notification, the DGFT had inter alia notified total 32 New HSN
Codes for Technical Textiles under Chapter 39, 54, 55, 56, 59, 60, 62, 63, and 68 of
ITC(HS) 2022, Schedule 1 (Import Policy) in reference to the PLI Scheme notified by
the Ministry of Textiles for Textiles covering Man Made Fibre (MMF) and Technical
Textiles as focus areas of growth under the Scheme.
2: However, despite having specific HS Codes for Technical Textiles, it has
been noted that imports/exports have not been booked under correct HS Codes
and the trade seems to be still being booked under other available codes.
4. Accordingly, the matter has been reviewed in consultation with Ministry of Textiles
and it is reiterated that all importers/exporters should file their Bill of Entry/Shipping
Bill with specific HSN codes available for Man Made Fibre (MMF) and Technical
Textiles under ITC(HS) 2022, Schedule 1 (Import Policy) at 8 digit level, and to avoid
using any other or ‘Others’ category codes. A list of such 32 HS Codes is given at
Annexure-I to facilitate the industry for easy recognition and helping them to book their
import and exports under correct product category.
5. If members of Trade and Industry are of the view that the existing 32 HS Codes
are not sufficient to cover the Technical Textiles goods that they are importing/exporting,
they should immediately suggest appropriate HS Codes at 8 digit level for such goods.
This issues with the approval of the competent authority
Ward
3a HeleRre fase CaaS
E-mail: sanjay.kt@nic.in
(Issued from File No. M-4947/2002/PC-2[AJ/E-3227)Annexure |
List of 32 HSN Codes for Technical Textiles
SI. No. TC HS Product Description
Code
4. |839201013 |Geomembrane, confirming to IS 16352
N 54021920 Nylon 66 filament yarn confirming to IS 13464
54026960 [Ultra-high molecular weight polyethylene filament yarn conforming to ASTM
wo
F2848
CO}
55031110* |Of aramids: Aramid Flame Retardant Fibre
55031120* |Of aramids: Para-oramid Fibre
55031930 [Nylon 66 fibre conforming to IS 13464 Other
55033010 (Acrylic or modacrylic: Pre-Oxidised Fibre, conforming to IS 17308
55039030 [Ultra-high molecular weight polyethylene staple fibre conforming to ASTM
F2848
9. 155041011 [Of viscose rayon: Obtained from wood other than bamboo: Flame retardant
Viscose Rayon fibre
40. 155041021 |Of viscose rayon: Obtained from bamboo: Flame retardant Viscose Rayon
fibre
11. '55099910 Yarn made of 100% inherent FR synthetic fibre
42. |55109030 \Yarn made of 100% inherent FR artificial fibre
13. [55159950 |Fabrics made of 100% inherent FR synthetic fibre
14. [56031110 |Weighing not more than 25 g/m2: Crop covers, conforming to IS 16366
15. 156039310 Weighing more than 70 g/m2 but not more than 150 g/m2: Mulch Mats,
conforming to IS 17355
16. 56039410 |Weighing more than 150 g/m2: Non-woven Geotextile and articles thereof,
Conforming to IS 16391, IS 16392
17. |56039420 |Weighing more than 150 g/m2: Mulch Mats, conforming to IS 17355
18. 159119031 |Knitted or woven Geo-technical textile: Geogrid conforming to IS 17373
19. 59119032 [Knitted or woven Geo-technical textile: Geotextile conforming to IS 16391, IS
16392
20. 159119040 (Mulch mats, conforming to IS 16202
21.|60053710 (Other, dyed: Shade Nets, conforming to IS 16008
22. 162104020 |NBC Warfare suits and the like (conforming to IS 17377)
23. 62104030 High Visibility Warning Clothes and the like (Conforming to IS
15809)
24. 62104040 High Altitude Clothes (Conforming to IS 5866)
25. 62104050 [Fighter Aircraft Clothing (Conforming to IS 1187 !)
26. '62101010 [Personal protective garments for surgical/ medical use (felt or non-woven)
conforming to IS 17423
27.162101020 [Surgical gowns and drapes conforming to IS 17334
28. '62104060 [Personal protective garments for surgical/medical use (felt or non-woven)
conforming to IS 17423
29. 62104070 [Surgical gowns and drapes conforming to IS 17334
30. 162104080 [Clothing for special use such as FR, chemical(IS15071 ,15758) Electrical (IS
11871, IS 16655 and industrial Section(IS 17466)
31. '63079091 [Textile face masks, without a replaceable filter or mechanical parts, including
surgical mask and disposable face mask made of nonwoven textile
32. 68159930 |Basalt fibre, filament and articles thereof conforming to ASTM
D3039, C1185
Source: ITC(HS) 2022, Schedule 1 (Import Policy)
*Substituted for tariff item 5503 11 00 (Synthetic staple fibres, not carded, combed or ]
otherwise processed for spinning: of aramids) # A 4 ¢
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