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HSN Code for Fox Nuts
Context:
The Ministries of Commerce and Agriculture are collaborating to obtain a globally recognised Harmonized System of Nomenclature (HSN) code for fox nuts (makhana).
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- This initiative aims to enhance the tracking and promotion of the aquatic crop’s exports.
- In addition to this initiative, the government has decided to establish a makhana board in Bihar, which accounts for over 90% of India’s makhana supply, as part of the budget for 2025-26.
- This board, along with the HSN code, is expected to provide a significant boost to the makhana industry.
- Currently, makhana, recognised globally for its nutritional benefits, is exported under the general category of “dry fruits,” which complicates the accurate monitoring of its trade.
- The top importers of makhana from India include the United States, United Kingdom, Canada, Australia, and the United Arab Emirates.
What is the HSN Code?
- The Harmonised System of Nomenclature (HSN) is an international system used to classify goods traded globally.
- It standardises the identification of products across different countries, thereby simplifying taxation and documentation processes.
- The HSN code is essential for customs authorities to identify products, apply the correct tariffs, and collect accurate trade statistics.
Significance of HSN Code
- Standardisation: It provides a uniform basis for classifying goods, ensuring that products are identified consistently worldwide.
- Customs and Tariffs: It helps in determining the applicable duty and tax rates for specific products.
- Trade Statistics: It enables accurate collection and analysis of international trade data.
- Compliance: It assists traders in complying with international trade regulations.
Benefits Associated with the HSN Code
Securing a specific HSN code for makhana offers several potential advantages:
- Accurate Export Tracking: A dedicated HSN code will allow authorities to precisely monitor the export volumes and values of makhana, providing better insights into its market performance.
- Policy Interventions: With accurate data, the government can formulate targeted policies to promote the trade of this GI-tagged product.
- Simplified Taxation and Documentation: A specific code simplifies customs procedures, reducing complexities and potential delays in export processes.
- Global Recognition: It enhances the product’s recognition in international markets, potentially boosting its acceptance and demand.
Assigning a separate HSN code to makhana is expected to significantly boost its trade. As of now, the crop is exported under the category of dry fruits. Once a separate HSN code is assigned to makhana, it will become easier to track its export growth and plan policy-level interventions to promote the trade of this GI-tagged product.
