A guidebook mapping 12,167 HSN codes for products produced by 31 ministries and departments has been prepared by the government in order to promote a data-driven approach and enhance ease of doing business, according to a statement by the ministry of commerce and industry on Sunday.
The move follows persistent challenges faced by the government faced during trade negotiations, import substitution efforts and redressal of industry concerns due to the absence of definitive mapping of these codes.
In trade parlance, every product is categorised under an HSN (Harmonised System of Nomenclature) Code to help in systematic classification of goods across the globe.
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"With the facilitation for identification of the relevant ministry or department for specific HSN Codes, this initiative will streamline regulatory processes and further enhance ease of doing business," the statement by the ministry said.
The process involved a thorough review of the Allocation of Business Rules, 1961, for mapping of each code based on the nature and end-use of the product.
Further, unmapped codes were misclassified as 'Residual Products' due to unclear ownership.
"The DPIIT (department for promotion of industry and internal trade) followed a holistic and proactive approach by undertaking the value-chain and use-case analysis for each of the 12,167 HSN Codes sourced from the Central Board of Indirect Taxes and Customs (CBIC) Tariff Manual," it said.
Not only will the development support more effective trade agreement negotiations that are aligned with national economic priorities and domain strengths, it will also aid in streamlining regulatory processes.
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