The Indian government will create 1200 new categories under chapter 72 of HSN codes which pertains to imports of iron and steel, to monitor imports into India.
Products are categorised under Harmonised System of Nomenclature code (HSN), which helps in systematic classification of goods across the globe. Based on the yield, certain products will be assigned new HSN codes.
These new HSN codes will be introduced to minimise the products falling under the ‘others’ category, which the government said increased unnecessary imports into India
In 2018-19, India’s imports were at $500bn, of which, ‘others’ category accounted for $100bn at the minimum. After the amendments, importers will need to approach the commerce ministry to seek special license for imports under the others category.
The proposal is likely to have a positive impact on Indian trade pattern, and help the manufacturing segment to grow.