HS Code Guide · EPM Subvention
HS Code 071320 Meaning — Chickpeas (garbanzos), dried & shelled: Global Trade, India & Factoring Guide
HS 071320 covers chickpeas (garbanzos), dried & shelled. 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 071320 sits in 07 — Vegetables. Official tariff description: “Vegetables, leguminous; chickpeas (garbanzos), shelled, whether or not skinned or split, dried” In plain terms, it covers chickpeas (garbanzos), dried & shelled. 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 071320?
HS 071320 covers dried shelled chickpeas — desi (brown, small, split as chana dal) and kabuli (cream, large) — whether whole, skinned or split, but not cooked or prepared.
Official description: Vegetables, leguminous; chickpeas (garbanzos), shelled, whether or not skinned or split, dried
What HS 071320 does in trade
- Lets exporters distinguish chickpeas from other pulses (071331 mung beans, 071340 lentils) for duty drawback and phytosanitary control.
- Makes the export eligible for 2.75% factoring subvention — pulses are in the positive list and 071320 is explicitly included.
- Helps buyers verify origin/grade (e.g. kabuli size) — important for 30–60 day open-account contracts in chickpea trade.
Global perspective — where HS 071320 moves
World chickpea trade ~1.5–2 MT annually. Production is concentrated in South Asia and Australia/Canada. Demand is global — hummus, canned pulses, snack manufacturing. Price cycles follow monsoon and Australian harvests.
| Top global exporters | Top global importers |
|---|---|
| Australia | Bangladesh |
| India | Pakistan |
| Canada | Turkey |
| Russia | UAE |
| Mexico | United States |
India's stance on HS 071320
India is the world's largest chickpea producer (~65% share) and a two-way trader — exporter of kabuli, importer of desi in deficit years. APMC/mandi → processing → export. Gujarat, MP and Maharashtra are key clusters. APEDA registers pulse exporters.
Export docs to watch
Exports need phytosanitary certificate, APEDA RCMC and grading certificate. Moisture and admixture % are common discrepancies.
GIFT City — factoring HS 071320 in foreign currency
Chickpea invoices are typically INR or USD; both routes (RBI-regulated factor in India or IFSCA-regulated in GIFT) are eligible — GIFT helps when the buyer is Middle East/Turkey and pays in USD.
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 071320 eligible for 2.75%?
Yes — HS 071320 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 071320 |
|---|---|
| In positive list (HS-6) | Yes — 071320 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. 07132010) starts with 071320, it inherits this eligibility. Verify on the HS checker — enter 6 or 8 digits.
Check HS 071320 — 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 071320 — Chickpeas (garbanzos), dried & shelled?
HS 071320 covers dried shelled chickpeas — desi (brown, small, split as chana dal) and kabuli (cream, large) — whether whole, skinned or split, but not cooked or prepared.
Is HS 071320 eligible for the 2.75% interest subvention?
Yes. HS 071320 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 071320 and how?
MSMEs (as defined by Ministry of MSME) with active IEC and Udyam, factoring eligible exports of HS 071320 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 071320 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 071320 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 071320 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.