In News:

India has amended the Customs Tariff Act, 1975, becoming the first country in the world to introduce a Harmonised System (HS) code for Geographical Indication (GI)-tagged rice varieties. This was announced in the Union Budget 2025–26.

Key Features of the Amendment

• HS Code Introduced For:
  • 1006-30-11 – GI-tagged parboiled rice
  • 1006-30-91 – GI-tagged white rice
• Objective:
  • To enable uninterrupted exports of GI rice even during general export restrictions or bans.
  • GI rice exports will not require special government notification during such bans.

About Harmonised System (HS) Code

• Full Form: Harmonised System Code
• Developed by: World Customs Organization (WCO)
• Structure: 6-digit global standard; India uses an 8-digit extension for more specific classification.
• Purpose: Classification of traded goods for customs, tariffs, and trade statistics.
• HS Code Hierarchy:
  • First 2 digits: Chapter (e.g., “10” for cereals)
  • Next 2 digits: Heading (e.g., “06” for rice)
  • Last 2 digits: Subheading (e.g., “30” for semi-milled or wholly milled rice)

Impact on GI Rice Exports

• Facilitates global market access for Indian specialty rice varieties.
• Differentiates GI-tagged rice from conventional rice in trade documents.
• Prevents mislabeling and misuse of India’s GI rice identity.
• Allows exports of GI rice even under export bans, without fresh government clearance.

GI-Tagged Rice Varieties in India

• 20 GI-recognized rice varieties, including:Navara, Palakkadan Matta, Pokkali, Wayanad Jeerakasala, etc.
• 20 pending GI applications, including:Seeraga Samba, Jammu & Kashmir Red Rice, Wada Kolam Paddy, etc.

About the World Customs Organization (WCO)

• Established in 1952 as the Customs Co-operation Council; renamed WCO in 1994.
• Headquarters: Brussels, Belgium.
• Membership: 183 customs administrations, including India, covering 98% of global trade.
• Key Functions:
  • Maintains and updates the HS Code every 5 years.
  • Drives customs modernization through instruments like the Revised Kyoto Convention (RKC).
  • Coordinates anti-smuggling, anti-counterfeiting, and trade enforcement efforts.
  • Collaborates with global institutions like the WTO and UN to enhance trade efficiency.