The Department for Promotion of Industry and Internal Trade (DPIIT) has prepared a Guidebook on Mapping of Harmonised System of Nomenclature (HSN) Codes.
Through this exercise the department has allocated 12,167 codes to 31 ministries and departments, providing clarity on which products fall under the purview of ministry and department.
HSN code is an eight-digit code used to systematically name and classify goods for taxation and trade internationally. These codes are allocated for different products by World Customs Organisation (WCO) and are the same globally.
Clarity for Policymaking, Investment, and Trade Facilitation
As the departments will know exactly which products they deal with, they will be able to draw up plans for development of these sectors, promote investments and facilitate trade.
In trade negotiations the guide will be handy for the Department of Commerce while seeking inputs from different ministries. “It will support more effective trade agreement negotiations which are aligned with national economic priorities and domain strengths,” commerce and industry minister Piyush Goyal was quoted in a statement as saying.
Solving the long-standing challenge
This will also streamline regulatory processes and enhance ease of doing business. The origin of development of the handbook lies in the observation of persistent challenges arising during trade negotiations, import substitution efforts and redressal of industry concerns due to absence of definitive mapping of HSN codes. The unmapped codes were classified as ‘residual products’ due to unclear ownership.