New Delhi: An Ordinance to simplify procedures to facilitate imports by adopting a
common commodity classification to be used by Customs, Directorate General of
Foreign Trade and Directorate General of Central
Intelligence and Services was promulgated on January 20.
President Abdul Kalam promulgated an Ordinance amending the Customs Tarrif Act,
1975, with prospective effect from February 1, 2003, to enable the trade, commerce
and industry to ready themselves to the emerging new commodity 'classification
code', said an official release.
The code has been prepared in consultation with the Ministry of Commerce, trade,
industry and other users as part of government's ongoing efforts for simplification
of procedures to facilitate imports.
"The code is based on internationally adopted six digit harmonised system of
nomenclature evolved by World Customs Organisation and individual countries to
expand and to accommodate domestic needs and concerns," the release said.
The present code of six digits, which has about 6,000 items has been expanded into
eight digits with an additional 10,000 items or so with a provision to add more such
items in future.
The Ordinance seeks to integrate Indian economy with the global economy to evolve
procedures adopting global needs.
This will also avoid disputes relating to classification arising out of
multiplication of classification code adopted by different agencies thereby reducing
transaction costs, it said.
This, the release said, will improve competence of Indian industry to facilitate
collection, compilation, analysis and exchange of trade statistics and standard unit
of measurements based on international trade practices incorporated against
commodities.
No change in the rates of duties has been provided.
The Ordinance follows long felt demands of all industries associations and Export
Promotion Board for a common code besides recommendations of Kelkar Committee in
this regard.
The expanded code takes into account specific needs of the country and will be
helpful in international trade negotiations, the release said.
PTI
