HS Code Guide · EPM Subvention
HS Code 100620 Meaning — Rice, husked (brown): Global Trade, India & Factoring Guide
HS 100620 covers rice, husked (brown). 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 100620 sits in 10 — Cereals. Official tariff description: “Cereals; husked (brown) rice” In plain terms, it covers rice, husked (brown). 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 100620?
HS 100620 covers husked (brown) rice — paddy de-husked, not milled/polished. Not milled white (100630) or broken (100640).
Official description: Cereals; husked (brown) rice
What HS 100620 does in trade
- Captures the brown-rice stage between paddy (100610) and white (100630) — less processed, higher bran.
- Is eligible — brown rice is in the positive list, so factoring qualifies for 2.75%.
- Enables factoring for health-focused brown rice with 60–90 day terms.
Global perspective — where HS 100620 moves
Global brown rice trade is niche vs white — health trend driven, smaller volumes. Asia is source and buyer.
| Top global exporters | Top global importers |
|---|---|
| India | European Union |
| Thailand | United States |
| Vietnam | Saudi Arabia |
| Pakistan | Japan |
| United States | Canada |
India's stance on HS 100620
India exports brown rice as niche health product — APEDA, Punjab/Haryana basmati belt plus non-basmati. Brown rice commands premium but smaller volumes than white.
Export docs to watch
Brown rice needs APEDA RCMC, phytosanitary and for EU pesticide compliance. Variety must match.
GIFT City — factoring HS 100620 in foreign currency
Brown rice is USD niche — 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 100620 eligible for 2.75%?
Yes — HS 100620 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 100620 |
|---|---|
| In positive list (HS-6) | Yes — 100620 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. 10062010) starts with 100620, it inherits this eligibility. Verify on the HS checker — enter 6 or 8 digits.
Check HS 100620 — 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 100620 — Rice, husked (brown)?
HS 100620 covers husked (brown) rice — paddy de-husked, not milled/polished. Not milled white (100630) or broken (100640).
Is HS 100620 eligible for the 2.75% interest subvention?
Yes. HS 100620 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 100620 and how?
MSMEs (as defined by Ministry of MSME) with active IEC and Udyam, factoring eligible exports of HS 100620 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 100620 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 100620 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 100620 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.