PUBLIC NOTICE NO. 06/2003, Dt. 27/01/2003

Promulgation of Custom Tariff (Amendment) Ordinance, 2003 – adoption of Harmonized System of Nomenclature (HSN) based 8 digit customs classification code.

Attention of all the Importers/CHA’s/Shipping Agents/Trade in general and all concerned is invited to the Promulgation of Customs Tariff (Amendment) Ordinance, 2003. The President of India has given his assent to implement the proposal of Ministry of Finance & Company Affairs (Department of Revenue) to adopt 8 digit customs classification code based on Harmonized System of Nomenclature (HSN) with effect from 1st February, 2003. This code replaces the current 6 digit customs classification in vogue since 1986. The new 8 digit code would also be adopted by Directorate General of Foreign Trade (DGFT) and Directorate General of Commercial Intelligence & Statistics (DGCIS).

2. The present 6 digit level classification is being enlarged to 8 digit level to accommodate commodities which are of special significance to the country’s needs. The expanded nomenclature facilitates and provides flexibility in international trade negotiations.

3. The switchover to the new code is part of ongoing efforts by Government to simplify import procedures and documentation by adopting a common classification code for all trade-related transactions. This would remove obstacles in international trade arising due to divergence of classifications by different agencies and thereby reduce transaction cost. The code has been prepared in consultation with trade and industry, various Ministries and field formations. The common classification will ensure smoother clearances of imported goods and help in getting more specific data on commodities of special significance to India and sharing of those data among various agencies. This is necessary for computerization of tax administration and electronic data processing.

4. Suitable changes have been made in the ICES software and will contain the centrally updated Directory of Customs headings and rates of duties in respect thereof. Similar changes have also been made for Central Excise Tariff headings. The existing 6-digit Tariff headings are suffixed with “00” which may be ignored for all legal purposes. Wherever 8-digit nomenclature is adopted for Central Excise only there will the EDI System be updated.

5. All the Importers/CHA’s/Shipping Agents and Trade in general are accordingly advised to indicate “8-Digit Classification Heading” for entry in the EDI System and also make suitable changes in their software to avoid any difficulties and delays. In case any difficulty is faced in implementation of the procedure, they may approach the Office of the Deputy Commissioner of Customs (EDI) or the Additional Commissioner of Customs (EDI) situated on 1st floor, Annexe Building, New Custom House, Mumbai.

(K.K. Agarwal)
Commissioner of Customs (General)

F. No. S/1-21/2003 EDP

Presented by eximkey.com