HS Code Guide · EPM Subvention
HS Code 620342 Meaning — Men's/boys' trousers, breeches & shorts, cotton, not knitted: Global Trade, India & Factoring Guide
HS 620342 covers men's/boys' trousers, breeches & shorts, cotton, not knitted. 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 620342 sits in 62 — Woven apparel (not knitted). Official tariff description: “Trousers, bib and brace overalls, breeches and shorts; men's or boys', of cotton (not knitted or crocheted)” In plain terms, it covers men's/boys' trousers, breeches & shorts, cotton, not knitted. 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 620342?
HS 620342 covers woven (non-knitted) cotton bottoms for men/boys — denim jeans, chinos, casual trousers, shorts — cut-and-sewn, not knitted.
Official description: Trousers, bib and brace overalls, breeches and shorts; men's or boys', of cotton (not knitted or crocheted)
What HS 620342 does in trade
- Separates woven trousers (62) from knitted (61) — customs, buyer and factory differ.
- Is in the positive list — factoring for 620342 exports qualifies for 2.75% MSME subvention.
- Drives working capital: denim/woven trousers have longer cut-to-pack cycles, so factoring 70–90% on shipment improves cash conversion.
Global perspective — where HS 620342 moves
Global woven-trouser trade is dominated by denim and chino replenishment. China, Bangladesh and Vietnam lead volume; Pakistan and Cambodia are fast growers. Sustainability (water use, indigo) is a buying criterion.
| Top global exporters | Top global importers |
|---|---|
| China | United States |
| Bangladesh | Germany |
| Vietnam | United Kingdom |
| Pakistan | France |
| India | Japan |
India's stance on HS 620342
India is a top-5 exporter of cotton woven trousers — clusters in Bengaluru, Mumbai, Tirupur and the NCR. AEPC registration required. US and EU are primary destinations; many MSMEs job-work or supply via large retailers on 60–90 day terms — factoring suits that cycle.
Export docs to watch
Woven apparel needs AEPC RCMC, origin certificate and buyer QC (AQL 2.5). Fibre composition on the invoice must match lab test.
GIFT City — factoring HS 620342 in foreign currency
Woven trouser exports are USD/EUR open-account — GIFT City foreign-currency factoring captures the 2.75% while keeping FX efficient for MSMEs.
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 620342 eligible for 2.75%?
Yes — HS 620342 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 620342 |
|---|---|
| In positive list (HS-6) | Yes — 620342 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. 62034210) starts with 620342, it inherits this eligibility. Verify on the HS checker — enter 6 or 8 digits.
Check HS 620342 — 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 620342 — Men's/boys' trousers, breeches & shorts, cotton, not knitted?
HS 620342 covers woven (non-knitted) cotton bottoms for men/boys — denim jeans, chinos, casual trousers, shorts — cut-and-sewn, not knitted.
Is HS 620342 eligible for the 2.75% interest subvention?
Yes. HS 620342 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 620342 and how?
MSMEs (as defined by Ministry of MSME) with active IEC and Udyam, factoring eligible exports of HS 620342 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 620342 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 620342 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 620342 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.