HARMONISED
SYSTEM OF NOMENCLATURE - ECONOMY
News:
Explained | Why has the
government called for PC import curbs?
What's
in the news?
● Recently,
India's Directorate General of Foreign Trade (DGFT) has announced that from
November 1, 2023, it will restrict the import of laptops, computers, and their
components, focusing on items under Harmonised
System of Nomenclature (HSN) Code 8471.
● Restriction
shall not be applicable to imports under baggage rules.
Harmonised
System of Nomenclature:
● It
is a six-digit identification code.
● Of
the six digits, the first two denote the HS Chapter, the next two give the HS
heading, and the last two give the HS subheading.
● Developed
by the World Customs Organization (WCO).
● Called
the “universal economic language” for goods.
● It
is a multipurpose international product nomenclature.
● The
system currently comprises around 5,000 commodity groups.
Importance:
● It
helps in systematic classification of goods, it can also be used to gather data
and solve problems that would otherwise be difficult to obtain.
● Over
200 countries use the system as a basis for their customs tariffs, gathering
international trade statistics, making trade policies, and for monitoring
goods.
● HSN
numbers exist for each commodity in every country, and the number remains the
same for almost all goods.
● The
system helps in harmonising customs and trade procedures, thus reducing costs in international trade.