History Of Harmonised System Nomenclature (HSN)


8 Digit Code:
During the period 28th February 1986 to 31st January 2003, Customs Tariff was a 6 Digit Code Tariff fully aligned with the HSN. However, the Directorate General Of Commercial Intelligence and Statistics (DGCIS) had evolved an 8 Digit Code for the compilation of imports/exports data and the Directorate General of Foreign Trade had adopted HSN based 8 Digit Code for the Foreign Trade Policy. Thus, the various Government departments and agencies have different standards of a classification code for international trade purpose. Therefore, there had been a demand from the trade and industry for the adoption of a common classification code to be used for all trade-related transactions based on international & domestic trade. Accordingly, the Government Of India on 20th January 2003 promulgated the "Customs Tariff(Amendment) Ordinance 2003" making far-reaching changes in the Customs Tariff Act with effect from 1st February 2003, Thus, this 8 digit code had replaced the existing 6 Digit Classification Code which had been effect since 1986. The Ordinance also empowered the government to effect changes in the First Schedule which is the Customs Import Tariff except for the rate of Customs duty applicable to those goods by subordinate legislation and also to specify standard units of measurements against Tariff items. The Finance Act,2006 further made a lot of changes in the first schedule of the Customs Tariff. The Finance Act,2011 further made a list of change in the first schedule of custom Tariff. The new Schedule is in force w.e.f. 1st January 2012
Next Post »