CEPC Nominates Expert Panel to CBIC for a Separate HSN Code for Machine-Made Carpets. Sheikh Ashiq Ahmad among three-member panel tasked with pushing regulatory distinction between handmade and machine-made carpets
Bilal Bhat
Srinagar: From representing Kashmir’s business community at the Kashmir Chamber of Commerce and Industry (KCCI) to taking up the concerns of the region’s traditional carpet sector at the national level, Sheikh Ashiq Ahmad has emerged as a prominent voice on issues affecting trade, industry and Kashmiri craftsmanship.
His latest intervention comes from the Carpet Export Promotion Council (CEPC), where Ashiq, a Member of its Committee of Administration, has been named to an expert panel tasked with examining the need for a separate and clearly identifiable Harmonised System of Nomenclature (HSN) code for machine-made carpets.
The initiative could prove significant for India’s handmade carpet industry, particularly Kashmir’s traditional carpet sector, where generations of artisans depend on the authenticity and market value of handmade products.
According to the CEPC, the expert panel comprising Sheikh Ashiq Ahmad, Piyush Kumar Baranwal and Mehraj Yasin Jan will prepare a representation for submission to the Central Board of Indirect Taxes and Customs (CBIC). The proposal is aimed at creating a clearer distinction between machine-made and handmade carpets within the tariff classification framework.
The issue goes beyond a technical tax classification.
CEPC says machine-made carpets are sometimes classified or marketed as handmade products because of inadequate differentiation in the existing classification structure. The Council says this can undermine the identity and market value of genuine handmade carpets and adversely affect artisans, manufacturers and exporters.
It is here that Sheikh Ashiq has put forward one of the central arguments behind the proposed reform: handmade and machine-made carpets are fundamentally different not only in how they are produced, but also in terms of craftsmanship, employment generation, artistic value and market positioning.
Ashiq has argued that the absence of a clearly identifiable classification for machine-made carpets creates room for such products to be represented as handmade, affecting genuine artisans and exporters and weakening the distinct identity of India’s handmade carpet industry.
The economic stakes are substantial.
According to the CEPC statement, significant stocks of genuine handmade carpets remain unsold in warehouses while machine-made products can be offered at considerably lower prices and, in some cases, represented as handmade. The Council argues that a clear separation between the two categories would improve transparency and provide fairer market opportunities to genuine handmade producers.
For Kashmir, where carpet weaving is deeply connected with the region’s artisan economy and cultural identity, the issue carries an importance beyond conventional trade policy.
The proposed separate HSN code would seek to create a clearer regulatory identity for machine-made carpets, making it more difficult for products from different production categories to be confused within the tariff and commercial system.
The expert panel is expected to examine the existing classification of carpets and other textile floor coverings under Chapter 57 of the Customs Tariff and prepare an economic, commercial and employment-related representation supporting a distinct classification for machine-made carpets.
The CEPC says such a distinction could help prevent misclassification, improve trade-data accuracy, enhance market transparency and safeguard the interests of artisans, weavers, manufacturers and exporters associated with India’s handmade carpet industry.
For Sheikh Ashiq, the initiative adds a significant national dimension to his engagement with Kashmir’s business and handicraft interests. His earlier role as a leading representative of the Kashmir Chamber of Commerce and Industry saw him speak on issues concerning trade, industry, tourism, handicrafts, MSMEs and employment. His present role at CEPC has taken the concerns of the carpet sector into a more specialised institutional forum.
The immediate objective is clear: establish a sharper line between a carpet made by artisans and one produced by machines, particularly where the latter may be represented in the market as the former.
However, the proposed HSN code remains a recommendation at this stage. The expert panel is to submit its representation to CBIC, which will examine the matter within the applicable tariff and legal framework. The CEPC has said the recommendations will be submitted to CBIC for consideration and appropriate action.
If ultimately adopted, the proposal could become an important regulatory tool for protecting the commercial identity of handmade carpets and the livelihoods associated with them.
For Kashmir’s carpet artisans, the larger question is not simply how carpets are classified on paper. It is whether genuine craftsmanship can retain its identity and economic value in a market increasingly confronted by cheaper machine-made alternatives.
And that is precisely the battle Sheikh Ashiq is now taking from the chambers of Kashmir’s business community to the national regulatory table.
