HS Code Guide · EPM Subvention
HS Code 090411 Meaning — Pepper, neither crushed nor ground: Global Trade, India & Factoring Guide
HS 090411 covers pepper, neither crushed nor ground. 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 090411 sits in 09 — Coffee, tea & spices. Official tariff description: “Spices; pepper (of the genus piper), neither crushed nor ground” In plain terms, it covers pepper, neither crushed nor ground. 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 090411?
HS 090411 covers whole black/white pepper — dried berries of Piper nigrum, neither crushed nor ground. Ground pepper is 090412.
Official description: Spices; pepper (of the genus piper), neither crushed nor ground
What HS 090411 does in trade
- Distinguishes whole pepper (commodity) from ground (value-added) and Capsicum (090421) — different duty and grade.
- Is eligible — pepper is in the positive list, so whole pepper factoring qualifies for 2.75%.
- Enables grade-based pricing (Malabar MG1) that factoring banks verify on invoice.
Global perspective — where HS 090411 moves
World pepper trade ~0.5 MT, price-volatile (Vietnam harvest cycles). Whole pepper is storable and auction-traded. Vietnam and Brazil dominate volume.
| Top global exporters | Top global importers |
|---|---|
| Vietnam | United States |
| Brazil | Germany |
| Indonesia | Vietnam |
| India | India |
| Sri Lanka | United Kingdom |
India's stance on HS 090411
India — Malabar pepper (GI) from Kerala/Karnataka — is a premium origin, exporter and importer. Spices Board registration required; Kochi pepper exchange sets benchmarks.
Export docs to watch
Pepper needs Spices Board CRES, phytosanitary and Agmark grade (bulk density, moisture).
GIFT City — factoring HS 090411 in foreign currency
Pepper is USD-traded storable spice — GIFT City FC factoring suits 60–90 day terms with 2.75% retained.
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 090411 eligible for 2.75%?
Yes — HS 090411 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 090411 |
|---|---|
| In positive list (HS-6) | Yes — 090411 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. 09041110) starts with 090411, it inherits this eligibility. Verify on the HS checker — enter 6 or 8 digits.
Check HS 090411 — 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 090411 — Pepper, neither crushed nor ground?
HS 090411 covers whole black/white pepper — dried berries of Piper nigrum, neither crushed nor ground. Ground pepper is 090412.
Is HS 090411 eligible for the 2.75% interest subvention?
Yes. HS 090411 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 090411 and how?
MSMEs (as defined by Ministry of MSME) with active IEC and Udyam, factoring eligible exports of HS 090411 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 090411 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 090411 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 090411 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.