Indian Govt Moots Separate HSN Code For Recycled Textiles

The Indian Textiles Ministry has started a process to create separate tariff codes also called HSN codes, to keep a record of exports or imports of recycled textiles.

Currently, these recycled textiles are exported or imported under the current and relevant HSN codes of textiles like yarns or fabrics, which makes it difficult to track the volume or value of these exports or imports.

“The demand for sustainable or recycled textiles is on the rise, paving the way for textile recycling, a new segment to emerge,” a statement from the Confederation of Indian Textile Industry (CITI) had said.

Several textile companies have started production of various textile products from these recycled materials. But there are no separate HSN codes for recycled yarn, fabrics, etc.

“Various industry trade bodies have sent requests for creating new HSN codes specifically for recycled textiles,” the statement added.

The trade bodies opined that the inclusion of recycled textiles in the HSN classification will help to identify and track the trade in textile articles made from pre and post-consumer regenerated fibres.

This will foster transparency in the supply chain and help in measuring the growth of the circular textile economy.

Further, HSN codes for recycled textiles will help customs authorities, policymakers, and trade organisations to better regulate and manage the trade of these products.

“It will also facilitate compliance with sustainability standards and certifications,” the CITI statement added.

In the statement, CITI requested textile companies to give their suggestions on the need for a separate HSN code on a request from the textiles ministry.