Promulgation of Customs Tariff (Amendment) Ordinance, 2003 – adoption of Harmonized System of Nomenclature (HSN) based 8 digit Customs classification code - Customs - 5/03

OFFICE OF THE COMMISSIONER OF CUSTOMS AIR CARGO COMPLEX, SAHAR, ANDHERI (E), MUMBAI-400099 F.NO. S/3-MISC-PRO-25/02ACC Date: 31.01.2003 Public Notice No. 5/03 Sub : Promulgation of Customs Tariff (Amendment) Ordinance, 2003 adoption of Harmonized System of Nomenclature (HSN) based 8 digit Customs classification code Attention of Trade/CHAs/Importers is invited to the adoption of 8-digit nomenclature code for Customs Tariff with effect from 1st February,2003. The President of India has given his assent to the promulgation of Customs Tariff (Amendment) Ordinance, 2003 to implement the proposal of Ministry of Finance and Company Affairs (Department of Revenue) to adopt 8-digit Customs classification code based on Harmonized System 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. There has been a demand from the trade and industry for adoption of a common classification code to be used for all trade-related transactions based on internationally adopted HSN to facilitate international and domestic trade. 3. 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. 4. The switchover to the new code is a part of ongoing efforts by the 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 clearance of imported goods and help in getting more specific data on commodities of special significance of India and sharing of those data among various agencies. This is necessary for computerization of tax administration and electronic data processing. 5. In view of the above all the members of the Trade, Industry and Custom House Agents are hereby informed to make necessary amendments to include this 8-digit CTH in all their Bills of Entry with effect from 01.02.2003. No B/E will be accepted unless the declaration therein confirms to the new 8 digit Customs, Classification code. 6. As regards Central Excise Tariff headings, please note that there is no change. 7. In respect of B/E filed in EDI, you may make following changes while filing the Bills of Entry :- (a) Custom Tariff head (CTH) is 8 characters long, which is coming into effect from 1st February, 2003. (b) All tables which involve CTH the length has been increased to 8. (c) RITC CTH are the same with this implementation. (d) All existing exemption notifications continue to remain valid for the time being. However, in view of the change to 8- digit code, the EDI system will not automatically grant any exemption benefit. Hence notification benefit should be explicitly every time it is applicable. (e) The CETH will continue to be 6 digits long as no change has been made in the Central Excise Tariff. (f) All prior bills of entry where relevant date for duty falls on or after 01.02.2003 will require amendment of heading and will appear for assessment again. 8. The New Custom Tariff (8 digit) can be downloaded from website of Commissionerate www.acc mumbai.gov.in . 9. In case any difficulties are faced in implementation, the Public Relations Officer may be contacted (Ph. No.28228516). (Y. G. PARANDE) COMMISSIONER OF CUSTOMS(IMPORT) ACC SAHAR