HS Code Guide · EPM Subvention
HS Code 120242 Meaning — Groundnuts, shelled, other than seed: Global Trade, India & Factoring Guide
HS 120242 covers groundnuts, shelled, other than seed. 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 120242 sits in 12 — Oil seeds & oleaginous fruits. Official tariff description: “Ground-nuts; other than seed, not roasted or otherwise cooked, shelled, whether or not broken,” In plain terms, it covers groundnuts, shelled, other than seed. 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 120242?
HS 120242 covers shelled groundnuts (peanuts) other than seed — raw kernels, not roasted/cooked, whole or broken.
Official description: Ground-nuts; other than seed, not roasted or otherwise cooked, shelled, whether or not broken,
What HS 120242 does in trade
- Separates shelled kernels (value) from in-shell (120241) and seed (120230) — different duty and aflatoxin controls.
- Is eligible — groundnuts are in the positive list, so MSME factoring qualifies for 2.75%.
- Enables grade pricing (Java, bold) that drives 30–60 day open-account contracts.
Global perspective — where HS 120242 moves
World shelled groundnut trade ~3 MT, with India, Argentina and US as key origins. EU and Vietnam are major buyers; aflatoxin is the trade barrier.
| Top global exporters | Top global importers |
|---|---|
| India | Vietnam |
| Argentina | Indonesia |
| United States | European Union |
| Sudan | China |
| Brazil | Russia |
India's stance on HS 120242
India is #1 groundnut producer/exporter — Gujarat (Rajkot) hub. IOPEPC registers exporters. Exports go to Indonesia, Vietnam and EU; aflatoxin compliance is critical.
Export docs to watch
Groundnuts need IOPEPC RCMC, phytosanitary and EU aflatoxin-SPS compliance.
GIFT City — factoring HS 120242 in foreign currency
Groundnut is USD invoiced to SE Asia/EU — GIFT City FC factoring pairs with 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 120242 eligible for 2.75%?
Yes — HS 120242 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 120242 |
|---|---|
| In positive list (HS-6) | Yes — 120242 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. 12024210) starts with 120242, it inherits this eligibility. Verify on the HS checker — enter 6 or 8 digits.
Check HS 120242 — 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 120242 — Groundnuts, shelled, other than seed?
HS 120242 covers shelled groundnuts (peanuts) other than seed — raw kernels, not roasted/cooked, whole or broken.
Is HS 120242 eligible for the 2.75% interest subvention?
Yes. HS 120242 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 120242 and how?
MSMEs (as defined by Ministry of MSME) with active IEC and Udyam, factoring eligible exports of HS 120242 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 120242 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 120242 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 120242 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.