ITC-HS Codes: Classifying Imports & Exports in India

ITC-HS codes are India’s national tariff schedule, used to classify every product imported into or exported out of the country, and they directly drive customs duty, IGST, and licence conditions. The right code is the single most important data point on any shipping bill or bill of entry — get it wrong, and duty refunds, IGST claims, and export benefits can stall at the port. This guide explains how the system works for handicrafts, where to look up codes, and how to keep your classification defensible.

What is the ITC-HS?

ITC-HS stands for Indian Trade Clarification based on Harmonized System of Nomenclature. It is published by the Directorate General of Foreign Trade (DGFT) and is built on top of the WCO Harmonized System (HS) — the six-digit global standard used by customs administrations worldwide. India adds two more digits to publish an eight-digit Schedule of Rates of Duty under the Central Board of Indirect Taxes and Customs (CBIC); that eight-digit code is what ICEGATE actually checks when you file a shipping bill or bill of entry.

The structure is layered:

• Chapters (2-digit) — broad product families (e.g., Chapter 46 for plaiting materials, Chapter 97 for works of art).
• Headings and sub-headings (4- and 6-digit) — the global HS level.
• Indian sub-headings (8-digit) — where India sets BCD, Social Welfare Surcharge, IGST rate, and licensing conditions.

The full live schedule is hosted on the DGFT ITC-HS page (https://www.dgft.gov.in/CP/?opt=itchs-import-export) and is the reference used under the Customs Tariff Act, 1975.

How India extends the global HS

The WCO reviews the HS every few years. India adopts the same six-digit structure but is free to create additional eight-digit sub-headings under any six-digit code to set its own duty rate and conditional rules. That’s why two products that look identical at six digits can carry very different duty outcomes at the Indian level.

For handicrafts, the chapters you’ll most often work with include:

• Chapter 44 — Wood and articles of wood
• Chapter 46 — Manufactures of plaiting materials (bamboo, cane, grass, raffia)
• Chapter 57 — Carpets and other textile floor coverings
• Chapter 69 — Ceramic products
• Chapter 70 — Glass and glassware
• Chapter 71 — Pearls, precious stones, imitation jewellery
• Chapters 73 / 74 / 76 — Articles of iron, copper, aluminium
• Chapter 94 — Furniture; lamps
• Chapter 97 — Works of art, antiques

Always confirm the exact sub-heading against the live schedule on the DGFT ITC-HS portal before shipping.

Why the right code matters

A classification error has three downstream effects:

1. Duty exposure. The eight-digit code decides BCD and IGST. A wrong code can mean underpayment (with interest and penalties on assessment) or overpayment (with delayed refunds and possible scrutiny on the mis-declaration).
2. Licensing and policy conditions. Some handicraft codes attract specific conditions — items made of certain wild flora or fauna may be restricted under CITES-related rules, and antiques covered by the Antiquities and Art Treasures Act need a licence. DGFT’s Foreign Trade Policy and the ITC-HS together tell you whether advance authorisation, an FTA preference, or an export licence is needed.
3. Export benefits. Schemes like RoDTEP and EPCG / advance authorisation are scrip-claimed based on the HS code declared on the shipping bill — a wrong code can mean scrip rejection or a recovery notice.

Customs classifies borderline goods under the General Rules of Interpretation (GRI) of the HS, where the most specific description, the character-giving component, and the “finished article beats parts” principle all apply.

How to find the code for a handicraft

A defensible lookup follows this order:

• Read the chapter and heading Notes first — they often exclude (or include) the kind of product you’re classifying.
• Search the DGFT ITC-HS portal (https://www.dgft.gov.in/CP/?opt=itchs-import-export) by chapter, keyword, or heading.
• Cross-check the eight-digit code against CBIC’s Customs Tariff to see duty and any exemption notification.
• For products covered by BIS standards (wooden articles, textiles, toys, etc.), check whether the relevant Indian Standard is mandatory and whether the code triggers BIS-CRS clearance — your customs broker can confirm.
• If the item falls under “handicraft” in the FTP sense, the Export Promotion Council for Handicrafts (EPCH) is the relevant EPC for IEC-linked benefits, scheme certification, and grievance support.

A DGFT Public Notice or trade notice on the product can also pin down the code in borderline cases.

Worked example: a hand-carved wooden box

A Saharanpur wood carver exporting a small, decorated, freestanding wooden storage box, lacquered:

• It’s not furniture (Chapter 94), so Chapter 44 is the better chapter.
• At four digits, articles of wood are usually classified under the “other articles of wood” heading, not tableware/kitchenware, because the box is a generic household article.
• The eight-digit Indian sub-heading under Chapter 44 decides duty. Pull it up on the DGFT portal, check any CBIC notification that exempts handicraft items from BCD, and declare the full eight-digit code on the shipping bill.
• If the same product were a child’s toy box, BIS toys-safety rules may also apply — a different code path and a different compliance step.

Verify the exact code and any conditional requirements on the official DGFT ITC-HS page and the CBIC customs tariff before each shipment, since notifications are updated periodically.

Common pitfalls and the trade-desk angle

Watch out for these frequent misclassifications:

• Stopping at six-digit HS. India’s duty is set at eight digits, and most disputes arise at the national sub-heading.
• Treating “handicraft” as a single code. There is no generic “handicraft” entry; each item is classified by material, function and finish.
• Assuming the import and export codes match. India’s export and import tariff structures can differ at the eight-digit level, especially where a specific export-friendly sub-heading exists.
• Skipping chapter Notes. Disputes over brass-and-wood decorative items often turn on whether the article is furniture, ornament, or work of art — and the chapter Notes decide that.

Overseas buyers of Indian craft should ask the Indian supplier for the declared eight-digit HS code on the commercial invoice and shipping bill — a quick cross-check that you’re comparing like-for-like quotations. Working with a customs broker or a trade desk like GreenFlip India, which connects into the wider global GreenFlip network at greenflip.org for cross-border handicraft demand, makes the classification step routine, and keeps the Indian IEC holder and the overseas buyer aligned on the same code.

Bottom line

ITC-HS is India’s eight-digit extension of the WCO’s six-digit HS, and the code on your shipping bill or bill of entry decides duty, IGST, licensing and export scrip eligibility. Always start from the chapter Notes, look up the eight-digit sub-heading on the DGFT ITC-HS portal, and cross-check duty and conditional rules on the CBIC customs tariff — and verify current requirements with DGFT, CBIC and EPCH before each shipment, because classifications and conditions are updated periodically.