HS Code Guide · EPM Subvention
HS Code 040620 Meaning — Cheese, grated or powdered, all kinds: Global Trade, India & Factoring Guide
HS 040620 covers cheese, grated or powdered, all kinds. This guide explains what the code includes, its global trade, India's position, how GIFT City helps factor it, and whether MSME factoring qualifies for the 2.75% interest subvention.
What this HS code covers
HS 040620 sits in 04 — Dairy produce. Official tariff description: “Dairy produce; cheese of all kinds, grated or powdered” In plain terms, it covers cheese, grated or powdered, all kinds. Classification decides duty and documents; this 6-digit line is in the DGFT positive list (Trade Notice 25/2025-26 Annex V), so MSME factoring under it qualifies for the 2.75% subvention — details below.
What is HS 040620?
HS 040620 covers grated or powdered cheese — all varieties, incl. parmesan-type — vs fresh (040610), processed (040630) and other (040690).
Official description: Dairy produce; cheese of all kinds, grated or powdered
What HS 040620 does in trade
- Separates grated/powdered cheese for tariff and dairy-protocol checks — distinct from fresh/processed lines.
- Is eligible — grated cheese is in the positive list, so MSME cheese factoring qualifies for 2.75%.
- Captures a value-added, shelf-stable dairy export with 60–90 day retailer terms.
Global perspective — where HS 040620 moves
Global grated cheese trade is EU-led, tied to pizza/industrial demand. US and EU are both major producers. Shelf-stable formats trade longer than fresh cheese.
| Top global exporters | Top global importers |
|---|---|
| United States | United Kingdom |
| Germany | Germany |
| Netherlands | Japan |
| Italy | Saudi Arabia |
| France | Mexico |
India's stance on HS 040620
India cheese exports are small but growing — Amul and MSME dairies in Gujarat/Punjab. APEDA regulates dairy; grated cheese is eligible but volumes lag behind powder/ghee.
Export docs to watch
Cheese needs APEDA RCMC, veterinary health certificate and FSSAI. Cheese type and fat must match declaration.
GIFT City — factoring HS 040620 in foreign currency
Grated cheese is often USD to MENA — GIFT City FC factoring retains 2.75%.
Trad can route eligible invoices via an IFSCA-regulated IBU or Finance Company/Finance Unit undertaking factoring in GIFT City. The 2.75% subvention is identical whether you factor via India (RBI-regulated) or GIFT City (IFSCA-regulated) — the choice is about currency, banking relationship and buyer location, not the benefit rate.
Common financing stack for this HS
Factoring advances 70–90% in 24–48 hours after invoice verification; balance minus discount/fees on buyer payment. Works alongside packing credit — factoring covers the post-shipment open-account gap.
MSME subvention — is HS 040620 eligible for 2.75%?
Yes — HS 040620 is in the positive list (Trade Notice 25/2025-26 Annex V). MSMEs involved in international value chains with a valid active IEC (not in DEL) and valid Udyam can claim 2.75% per annum on the factoring interest cost element when factoring via an RBI/IFSCA-regulated entity.
| Check | For HS 040620 |
|---|---|
| In positive list (HS-6) | Yes — 040620 listed in Annex V |
| Benefit | 2.75% p.a. on interest cost element |
| Annual cap | ₹50 lakh per MSME per FY |
| Valid from | Prospectively from 20 Feb 2026 |
| Need UIN per factor? | Yes — declaration of intent before factoring, valid till FY-end |
| Eligible factors | RBI-regulated (AD bank / factoring NBFC) or IFSCA-regulated (GIFT IBU/FC) |
| Not covered | Deemed exports (FTP Ch.7) & exports to SEZs |
Eight-digit HS? Use first 6 digits
Eligibility is at HS-6. If your 8-digit HS (e.g. 04062010) starts with 040620, it inherits this eligibility. Verify on the HS checker — enter 6 or 8 digits.
Check HS 040620 — free
Verify any 6 or 8-digit HS against the DGFT positive list and see the 2.75% factoring eligibility in seconds.
Open HS checkerFrequently asked questions
What is HS 040620 — Cheese, grated or powdered, all kinds?
HS 040620 covers grated or powdered cheese — all varieties, incl. parmesan-type — vs fresh (040610), processed (040630) and other (040690).
Is HS 040620 eligible for the 2.75% interest subvention?
Yes. HS 040620 is in the DGFT positive list (Trade Notice 25/2025-26 Annex V, 4139 HS-6 lines). MSMEs factoring exports under this line via RBI/IFSCA-regulated factors can claim 2.75% per annum on the interest cost element, capped at ₹50 lakh per MSME per year, prospectively from 20 Feb 2026. Requires valid IEC (not in DEL), valid Udyam, and a UIN per factor obtained before factoring.
Who can claim the 2.75% for HS 040620 and how?
MSMEs (as defined by Ministry of MSME) with active IEC and Udyam, factoring eligible exports of HS 040620 via RBI/IFSCA-regulated entities. File a declaration of intent on the DGFT portal to get a UIN per factor (valid till FY-end), factor the invoice, the factor files monthly IEC-wise claims; subvention is credited to your IEC-linked bank account.
Can HS 040620 be factored via GIFT City?
Yes. IBUs and Finance Companies/Finance Units undertaking factoring in GIFT City (IFSCA-regulated) are eligible financial institutions under IFSCA circular 19 Mar 2026 and must extend the 2.75% benefit. Useful for USD/EUR receivables where you want foreign-currency factoring.
What does factoring for HS 040620 cost after subvention?
Indicatively, factoring discount/interest is priced commercially (often 8–12% p.a. depending on buyer, tenor, currency) plus factoring fee ~0.5–3% ⚠️. The 2.75% offsets only the interest element — e.g. a 9% interest cost becomes ~6.25% effective on that element if eligible. Fees/insurance/FX remain. Compare all-in cost.
Related HS codes
Compare HS 040620 with other MSME-export lines in the same chapter or family.
See all codes on the HS code guides hub, or read the 2.75% subvention deep-dive.