
DGFT Reclassifies Rice, Makhana, and Chemicals under ITC HS 2022
The Directorate General of Foreign Trade (DGFT) has issued a key update to Schedule-II of ITC (HS), 2022, revising classification codes for rice, makhana, and certain chemicals. This update aligns trade classifications with the Finance Act, 2025 and impacts both exporters and importers.
This blog simplifies the notification and breaks down what Indian businesses need to know.
What is ITC (HS) Schedule-II?
- ITC (HS) stands for Indian Trade Classification (Harmonised System).
- Schedule-I covers import policies, while Schedule-II covers export policies.
- It ensures India’s trade is aligned with international HS coding standards.
What Changed? [DGFT Notification Highlights]
The DGFT via recent notification (as per taxscan.in report) made the following key updates:
Product | Old ITC HS Code | New Classification | Export Policy |
---|---|---|---|
Rice (various types) | Varies | Reclassified across multiple sub-headings | Updated for clarity in parboiled, broken, Basmati types |
Makhana | 08134010 | Shifted to revised HS code block | Freely exportable with standard documentation |
Chemical Items | Multiple lines | Realigned with Finance Act, 2025 rates | Export allowed with condition or freely, depending on type |
Why DGFT Reclassified Rice, Makhana, and Chemicals
- To align with Budget 2025 taxation changes
- Ensure correct duty/tariff treatment in customs processes
- Improve HS code clarity for exporters/importers
- Prevent misuse of generic codes in trade documentation
Expert View: Exporters Must Recheck Codes
“Many exporters continue using legacy codes on invoices and shipping bills. This update is a reminder to always verify the latest ITC (HS) schedule before filing.”
— S. Krishnan, International Trade Consultant
What You Should Do Now
For Exporters & Importers:
- ✅ Revisit your customs broker SOPs
- ✅ Update your ERP/Tally/Zoho Books HS mappings
- ✅ Use correct codes to avoid rejection or delay
- ✅ Refer to the DGFT notification for each product line
Link to Official Notification
Subheading with Focus Keyphrase: DGFT Reclassifies Rice — What It Means for MSMEs
This reclassification especially affects small exporters dealing with non-Basmati rice and niche agri-products like makhana. New product lines under the reclassified HS codes may attract different export benefit rates under RoDTEP or RoSCTL.
Internal Tip
Read our full blog on RoDTEP export incentive scheme for 2025 (insert actual link) to check how these classification changes may affect your rebate claims.
FAQs
Q1. What is the new ITC HS code for makhana?
The DGFT has moved makhana to a new code to distinguish it from other dried fruits, aligning it with Finance Act definitions. Exporters should consult the latest Schedule-II.
Q2. Is there any restriction on exporting rice now?
Not in general. But specific rice types (e.g., broken rice) may fall under separate policy controls or conditions. Always check current export policy status.
Q3. Where can I verify ITC (HS) codes?
Visit dgft.gov.in or consult your customs broker.
Summary
DGFT reclassifies rice, makhana, and chemicals under ITC (HS) Schedule-II as per the Finance Act, 2025. Exporters must update codes to avoid rejection or benefit loss.
Final Words
DGFT’s realignment of export classifications is a compliance-first move. For small and mid-size businesses, these codes directly impact customs clearance and export incentives.