HS Code Guide · EPM Subvention
HS Code 090230 Meaning — Black tea (fermented), packs ≤3 kg: Global Trade, India & Factoring Guide
HS 090230 covers black tea (fermented), packs ≤3 kg. 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 090230 sits in 09 — Coffee, tea & spices. Official tariff description: “Tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg” In plain terms, it covers black tea (fermented), packs ≤3 kg. 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 090230?
HS 090230 is small-pack black tea — fully fermented (oxidised) Camellia sinensis — in retail packs ≤3 kg (the consumer-facing line). Bulk black tea is 090240 (>3 kg).
Official description: Tea, black; (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3kg
What HS 090230 does in trade
- Separates retail tea (040230) from bulk tea (040240) and green tea (090210/090220) — duty and buyer differ.
- Is in the positive list — so MSME exporters shipping retail black tea can use factoring and claim 2.75%.
- Captures branded/packaged exports where factoring advance helps fund packaging and inland logistics before buyer payment.
Global perspective — where HS 090230 moves
Global black-tea trade ~1.8 MT. CTC vs orthodox is the product split. Auction systems (Mombasa, Kolkata) set benchmarks. Retail packs carry higher unit value than bulk.
| Top global exporters | Top global importers |
|---|---|
| Kenya | Pakistan |
| Sri Lanka | Russia |
| India | United States |
| China | United Kingdom |
| Vietnam | Egypt |
India's stance on HS 090230
India is #2 black-tea producer/exporter — Assam, Darjeeling (GI) and Nilgiri clusters. Tea Board registration required. Russia, UAE, UK and US are major buyers for retail packs. E-commerce and private label drive small-pack exports for MSMEs.
Export docs to watch
Tea needs Tea Board export licence, APEDA/FSSAI, and for EU/US phytosanitary/MRL compliance. Blend and packing declarations must match HS.
GIFT City — factoring HS 090230 in foreign currency
Retail tea receivables often in USD/GBP to UK/Middle East — GIFT or India factor both eligible; GIFT suits FX retention.
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 090230 eligible for 2.75%?
Yes — HS 090230 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 090230 |
|---|---|
| In positive list (HS-6) | Yes — 090230 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. 09023010) starts with 090230, it inherits this eligibility. Verify on the HS checker — enter 6 or 8 digits.
Check HS 090230 — 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 090230 — Black tea (fermented), packs ≤3 kg?
HS 090230 is small-pack black tea — fully fermented (oxidised) Camellia sinensis — in retail packs ≤3 kg (the consumer-facing line). Bulk black tea is 090240 (>3 kg).
Is HS 090230 eligible for the 2.75% interest subvention?
Yes. HS 090230 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 090230 and how?
MSMEs (as defined by Ministry of MSME) with active IEC and Udyam, factoring eligible exports of HS 090230 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 090230 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 090230 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 090230 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.