Clearing the path for single identity for domestic and imported foods, FSSAI has issued a list of food products with their HS (Harmonized System) Code used by the Customs Department for imported food products. The apex food regulator intends to map these Codes with the Indian Food Code System (IFCS) used by it in Food Safety Regulations and Rules thereunder.
In this regard, around 1515 ITC-HS Code of imported food items along with the risk categorisation of the same were finalised by the FSSAI recently. The apex food regulator, in a notice issued here, stated that these food products are being mapped for implementation in Custom’s ICEGate (Customs portal) and FSSAI’s INFoLNET (Lab Network) to bring uniformity in enforcement.
“FSSAI mapped these 1515 ITC–HS Codes related to food articles with Food Safety & Standards Regulations and Food Code System for further implementation in INFoLNET,” the notice says.
The notice added that all the concerned, in this regard, were requested to provide valuable inputs to Imports Division of the FSSAI by April 4, 2020.
The comments were sought to crosscheck mapped ITC-HS Codes with the respective Food Code System and FSS Regulation Number. Secondly, if any other HS Code is missing from the list and any other suggestion related to mapping of HS Codes.
Dr Charu Mathur, advocate, Supreme Court, and food safety law expert, described the development as a good initiative.
She explained that ITC-HS codes or Indian Trade Clarification (ITC) are based on Harmonized System (HS) of Coding. Harmonized System Code is a systematic numbering of all the commodities that are traded internationally.
“Products are grouped according to conditions such as crude/natural products, unprocessed/semi-processed/ processed, utility/function etc. It was adopted in India for import-export operations. Indian Customs uses an eight digit ITC-HS code to suit the national trade requirements. Internationally- A six digit code is used. Of the six digits, first two digits are called ‘Chapters’, next two digits as ‘heading’ and last couple of digits as ‘sub heading’.
Depending on the country an 8 digit or even a 10 digit code can be applicable for further detailed classification of the product, though the first six digits remain constant globally,” said Dr Mathur.
She added, “Now, though this HS Code makes trade easy, there is a problem as well. The classification is often subjective. The classification of products is at the mercy of the experts doing the job of classifying the products. Very often packages are wrongly classified, leading to excessive taxes or penalty at the hands of the governing authority in a particular region and this follows consequent litigation. In India one of the most important regulatory process done by FSSAI is ‘Food Import Clearance System.’ FSSAI Act and the rules and regulations made there under impose large number of regulatory requirements to be fulfilled by the importer while importing food items into the country.”
She further explained, “These requirements include standards regarding products and additive; it also includes labelling and packaging requirements.”
Now, as regards the product and additive related standards, the regulations have categorised the food products in a four level hierarchy and assigned codes to the same, called the FSSR code. All regulatory requirements are defined based on the FSSR code. However, when applying for import clearance, the importer has to declare the ITC-HS (Harmonized System) code to the Customs for tariff calculation purposes. The Importer or the Customs Handling Agent (CHA) is not well conversant with the FSSR code and, hence, when applying for clearance from FSSAI, he is prone to declare inappropriate FSSR code for the HS code.
By mapping the codes the government is trying to rectify this ambiguity.
By this exercise, the HS codes will be mapped by the corresponding FSSR codes. However, great care is to be taken at the mapping stage otherwise it will lead to lots of ambiguity. Once mapped, they will be integrated in the FICS and once done it will ensure minimum human error.
Meanwhile, Amit Lohani, convener, the Federation of Indian Food Importers (FIFI), has said that this is the first time there will be a single identity of the food and it will help the legitimate players while thrashing out those that are not.
It is pertinent to mention here that the Food Safety and Standards Authority of India was working on mapping the food classification under the FSS Act with that of HS Code to ensure uniform enforcement activity for domestic and imported food products.
Earlier this year, FSSAI Chairperson Rita Teotia had announced that the mapping would ensure uniform testing protocols for the imported as well as domestic products thereby creating harmony between the enforcement activity for the two sectors and strengthening of the food safety ecosystem in a holistic manner.