HS Code Guide · EPM Subvention
HS Code 520812 Meaning — Woven cotton fabrics, ≥85% cotton, unbleached, 100–200 g/m2, plain weave: Global Trade, India & Factoring Guide
HS 520812 covers woven cotton fabrics, ≥85% cotton, unbleached, 100–200 g/m2, plain weave. 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 520812 sits in 52 — Cotton. Official tariff description: “Fabrics, woven; containing 85% or more by weight of cotton, unbleached, plain weave, weighing more than 100g/m2 but not more than 200g/m2” In plain terms, it covers woven cotton fabrics, ≥85% cotton, unbleached, 100–200 g/m2, plain weave. 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 520812?
HS 520812 covers medium-weight unbleached plain-weave cotton fabrics — ≥85% cotton, 100–200 g/m2, not bleached/dyed/printed.
Official description: Fabrics, woven; containing 85% or more by weight of cotton, unbleached, plain weave, weighing more than 100g/m2 but not more than 200g/m2
What HS 520812 does in trade
- Classifies greycloth by weight/weave/bleach — determines textile duty and buyer (mill vs converter).
- Is eligible — cotton fabrics are in the positive list, so MSME mill factoring qualifies for 2.75%.
- Enables factoring for mill shipments with 60–90 day terms to garment makers.
Global perspective — where HS 520812 moves
Global greycloth trade is mill-to-mill, China and India are volume weavers. Bangladesh and Vietnam are garment converters.
| Top global exporters | Top global importers |
|---|---|
| China | Bangladesh |
| India | Vietnam |
| Pakistan | Sri Lanka |
| United States | China |
| Turkey | Germany |
India's stance on HS 520812
India — Erode, Coimbatore, Bhilwara — is a top-2 greycloth exporter. Texprocil registers mills; MSME weaving → dyeing → garment chain.
Export docs to watch
Cotton fabrics need Texprocil RCMC; GSM, weave and width must match invoice.
GIFT City — factoring HS 520812 in foreign currency
Greycloth is USD to Bangladesh/Vietnam — 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 520812 eligible for 2.75%?
Yes — HS 520812 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 520812 |
|---|---|
| In positive list (HS-6) | Yes — 520812 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. 52081210) starts with 520812, it inherits this eligibility. Verify on the HS checker — enter 6 or 8 digits.
Check HS 520812 — 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 520812 — Woven cotton fabrics, ≥85% cotton, unbleached, 100–200 g/m2, plain weave?
HS 520812 covers medium-weight unbleached plain-weave cotton fabrics — ≥85% cotton, 100–200 g/m2, not bleached/dyed/printed.
Is HS 520812 eligible for the 2.75% interest subvention?
Yes. HS 520812 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 520812 and how?
MSMEs (as defined by Ministry of MSME) with active IEC and Udyam, factoring eligible exports of HS 520812 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 520812 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 520812 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 520812 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.