HS Code Guide · EPM Subvention
HS Code 640399 Meaning — Footwear, leather uppers, rubber soles, not covering ankle: Global Trade, India & Factoring Guide
HS 640399 covers footwear, leather uppers, rubber soles, not covering ankle. 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 640399 sits in 64 — Footwear. Official tariff description: “Footwear; n.e.c. in heading no. 6403, (not covering the ankle), outer soles of rubber, plastics or composition leather, uppers of leather” In plain terms, it covers footwear, leather uppers, rubber soles, not covering ankle. 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 640399?
HS 640399 covers low-cut leather footwear — shoes/sandals not covering the ankle, leather uppers, rubber/plastic soles. Distinct from boots (640391) and textile (640411).
Official description: Footwear; n.e.c. in heading no. 6403, (not covering the ankle), outer soles of rubber, plastics or composition leather, uppers of leather
What HS 640399 does in trade
- Classifies the volume MSME leather footwear line — determines duty and BIS/REACH checks.
- Is eligible — footwear is in the positive list, so factoring low-cut leather shoes qualifies for 2.75%.
- Enables factoring for 60–120 day retailer terms.
Global perspective — where HS 640399 moves
Global leather footwear trade is EU/US-driven, with China, Vietnam and Italy leading supply. Sustainability and chrome compliance are buying criteria.
| Top global exporters | Top global importers |
|---|---|
| China | United States |
| Vietnam | Germany |
| Italy | France |
| Indonesia | United Kingdom |
| India | Hong Kong |
India's stance on HS 640399
India (Agra, Kanpur, Chennai) is a top-5 leather footwear exporter. CLE registers exporters; EU/US are core markets.
Export docs to watch
Footwear needs CLE RCMC, and for EU REACH/low-chrome compliance.
GIFT City — factoring HS 640399 in foreign currency
Footwear is EUR/USD open-account — 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 640399 eligible for 2.75%?
Yes — HS 640399 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 640399 |
|---|---|
| In positive list (HS-6) | Yes — 640399 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. 64039910) starts with 640399, it inherits this eligibility. Verify on the HS checker — enter 6 or 8 digits.
Check HS 640399 — 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 640399 — Footwear, leather uppers, rubber soles, not covering ankle?
HS 640399 covers low-cut leather footwear — shoes/sandals not covering the ankle, leather uppers, rubber/plastic soles. Distinct from boots (640391) and textile (640411).
Is HS 640399 eligible for the 2.75% interest subvention?
Yes. HS 640399 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 640399 and how?
MSMEs (as defined by Ministry of MSME) with active IEC and Udyam, factoring eligible exports of HS 640399 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 640399 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 640399 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 640399 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.