HS Code Guide · EPM Subvention
HS Code 090220 Meaning — Green tea, packs >3 kg (bulk): Global Trade, India & Factoring Guide
HS 090220 covers green tea, packs >3 kg (bulk). 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 090220 sits in 09 — Coffee, tea & spices. Official tariff description: “Tea, green; (not fermented), in immediate packings of a content exceeding 3kg” In plain terms, it covers green tea, packs >3 kg (bulk). 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 090220?
HS 090220 covers bulk green tea — not fermented — in packs >3 kg vs small-pack 090210 (≤3 kg).
Official description: Tea, green; (not fermented), in immediate packings of a content exceeding 3kg
What HS 090220 does in trade
- Separates bulk green tea (industrial) from retail and black tea (090230/090240) — tariff and buyer differ.
- Is eligible — bulk green tea is in the positive list, so factoring qualifies for 2.75%.
- Enables factoring for B2B tea shipments with 60–90 day blender terms.
Global perspective — where HS 090220 moves
Global green-tea trade is health-driven and China-led. Bulk green tea feeds blenders and ready-to-drink. Japan and EU are premium buyers.
| Top global exporters | Top global importers |
|---|---|
| China | Pakistan |
| Kenya | Morocco |
| Sri Lanka | United States |
| India | Russia |
| Vietnam | United Kingdom |
India's stance on HS 090220
India exports green tea from Nilgiri and Assam — smaller than black tea but growing. Tea Board regulates; bulk green tea suits MENA buyers.
Export docs to watch
Green tea needs Tea Board licence, phytosanitary and MRL compliance.
GIFT City — factoring HS 090220 in foreign currency
Green tea bulk is 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 090220 eligible for 2.75%?
Yes — HS 090220 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 090220 |
|---|---|
| In positive list (HS-6) | Yes — 090220 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. 09022010) starts with 090220, it inherits this eligibility. Verify on the HS checker — enter 6 or 8 digits.
Check HS 090220 — 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 090220 — Green tea, packs >3 kg (bulk)?
HS 090220 covers bulk green tea — not fermented — in packs >3 kg vs small-pack 090210 (≤3 kg).
Is HS 090220 eligible for the 2.75% interest subvention?
Yes. HS 090220 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 090220 and how?
MSMEs (as defined by Ministry of MSME) with active IEC and Udyam, factoring eligible exports of HS 090220 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 090220 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 090220 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 090220 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.