Govt to adopt common 8-digit code for simplifying imports

NEW DELHI: In a bid to simplify import procedures and documentation, Union Cabinet on Thursday decided to bring an Ordinance for introduction of a common eight-digit commodity classification code based on Harmonised System of Nomenclature.
The proposal approved by the Cabinet today is to amend the Customs Tariff Act, 1975 so that a common classification is used by all concerned agencies Customs, Commerce and the Directorate General of Commercial Intelligence and Statistics, Information and Broadcasting Minister Sushma Swaraj told newspersons.
Cabinet also empowered the government to effect changes in the First Schedule, except the rate of customs duty applicable to those goods by subordinate legislation and also to specify standard units of measurement against tariff items.
The adoption of an eight-digit HSN by both DGCIS and DGFT will allow a common classification to be furnished at the place of rate of customs duty and importability of commodities she said.
This will remove obstacles created in trade on account of divergent classifications being used by different departments and agencies, she said adding the common code could also be adopted for levy of Central excise duty and uniform at present, customs tariff is a six-digit tariff fully Value Added Tax by the states.
Introduction of a standard unit of measurement will also facilitate collection, comparison and analysis of trade statistics, the Minister said.