Cir(127)/2023                                                   November 06, 2023

Committee:

Sub: Request for information on HSN Code for Recycled Textiles – reg.

 

Dear Sirs/Madam,

Greetings from CITI!

The demand for sustainable textiles is on the rise, paving the way for a new segment, Textile Recycling, to emerge. Multiple businesses across the country have started manufacturing garments/ other products out of these recycled materials and are looking to expand their markets. However, currently, there is no separate HSN code for recycled yarn/ fabrics, etc.

Several industry associations and recycling units from time to time have represented/ for creating new HSN codes specifically for recycled textiles. It was also informed that the current HS codes do not account for recycled textile products and the current recycled products are exported/ imported in existing yarn/fabric/garment/ waste codes. They 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, 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 organizations to better regulate and manage the trade of these products. It will also facilitate compliance with sustainability standards and certifications.

In view of the above Ministry has invited suggestions on the need for a separate HSN Code, including identification of HSN codes currently used by businesses to export/ import recycled fabric/ yarn etc.

You are therefore requested to share the above information by 9^th November 2023 so that the same can be compiled and shared with the Ministry for necessary action.

Thanking you,

Yours faithfully,

Chandrima Chatterjee

Secretary General