Expanded HSN Codes for Rice in India
GOVT TO EXPAND HSN CODES FOR RICE
The Commerce and Industry Ministry is expanding the codes of classification (HSN codes) for rice.
About:
- The goal is to separate varieties of non-basmati rice that are not traditionally consumed in the country from the popular staple variety of non-basmati white rice.
- This change aims to exclude these varieties from export restrictions.
- The expansion follows the government’s temporary ban on all categories of non-basmati white rice for exports.
Need for the Separate Code:
- Currently, there are only six HSN codes for non-basmati rice, despite there being 30-40 varieties grown in the country.
- When a ban on non-basmati white rice is imposed, all varieties get banned, including sona masuri, govind bhog, and kala namak, along with the regular non-basmati white rice.
- APEDA is also working on creating separate HSN codes for GI (Geographical Indications) rice varieties like red rice, black rice, and kalanamak rice.
HSN Codes:
- HSN codes, or Harmonized System of Nomenclature codes, are six-digit numerical codes used globally to classify traded goods.
- Developed by the World Customs Organization (WCO), they are the global standard for naming goods.
Structure of HSN Codes:
- First two digits: Chapter (broad product category, e.g., vegetable products)
- Next two digits: Heading (more specific product group, e.g., fresh vegetables)
- Last two digits: Subheading (specific product, e.g., tomatoes)
- Additional digits: Some countries add more digits to further classify products at the national level.
Key Functions of HSN Codes:
- Product identification: Each code corresponds to a specific product or group of products, providing a standardized way to classify and identify goods across borders.
- Customs clearance: HSN codes facilitate efficient customs clearance by helping authorities quickly identify and assess applicable duties and taxes on imported goods.
- Trade statistics: By tracking trade flows based on HSN codes, governments and international organizations can gather valuable data on global trade patterns and trends.
- Negotiating trade agreements: HSN codes serve as a common language for countries negotiating trade agreements, ensuring accurate product coverage and tariff concessions.
FAQs
Q: What is the HSN code for rice in India?
A: The HSN code for rice in India varies depending on the type of rice, but generally, rice falls under the HSN code 1006.
Q: What is the code for rice?
A: The general HSN code for rice is 1006.
Q: What is the HSN code for Sona Masoori rice?
A: The specific HSN code for Sona Masoori rice can vary, but it falls under the broader category of non-basmati rice with the general code 1006.
Q: What is the HSN code for rice rejection?
A: The HSN code for rice rejection would also fall under the general rice category, which is 1006.
Q: Why is there a need for separate HSN codes for different types of rice? A: Separate HSN codes help in accurately classifying different types of rice, ensuring specific varieties are not affected by broad export restrictions and allowing for better market targeting and trade negotiations.
Q: How will the new HSN codes benefit farmers? A: The new HSN codes will allow farmers to export specific rice varieties even if there are restrictions on others, helping them reach international markets and get better prices.
Q: What role does APEDA play in the expansion of HSN codes? A: APEDA is working on creating separate HSN codes for GI (Geographical Indications) rice varieties like red rice, black rice, and kalanamak rice, ensuring these unique varieties are recognized and promoted.
Q: What is the significance of GI (Geographical Indications) rice varieties? A: GI rice varieties are those that have specific geographical origins and qualities. Separate HSN codes for these varieties help in promoting their unique characteristics and heritage in global markets.
Further Expansion Details:
The expansion of HSN codes aims to create a more detailed and accurate classification of rice varieties, reflecting the diversity of rice grown in India. This will help in better managing export regulations and promoting specific rice types in international markets.
Steps Involved in Expansion:
- Identifying all non-basmati rice varieties and their unique characteristics.
- Creating separate HSN codes for each identified variety.
- Updating trade and export databases to reflect the new codes.
- Training customs officials and exporters on using the new HSN codes.
Benefits of Expanded HSN Codes:
- Enhanced Export Opportunities: By having specific HSN codes, certain rice varieties can be exempt from export bans, allowing farmers to reach international markets.
- Better Data Collection: Detailed HSN codes enable more precise data on production, export, and consumption patterns.
- Improved Trade Negotiations: Clear identification of rice varieties aids in negotiating trade agreements and tariffs, benefiting Indian farmers and exporters.
- Consumer Awareness: It helps consumers understand the different types of rice available and their origins.
Conclusion:
The additional HSN codes for rice have been added by Commerce and Industry Ministry as new step. From the overall perspective, it will be beneficial for the farmers who produce rice the exporters who export rice and the consumers who consumes rice from the following reasons; It will bring a more refined hierarchical structure of rice thus meaning that the rice industry in India will record impressive growth.
This expansion is especially necessary because there is great interest in the production of many other types of rice besides basmati, which are all different and can have their own demand in India’s market. It meant that by acknowledging and differentiating these varieties, the government will assist farmers in accessing more markets and getting higher prices for commodities.