179% More Exports to India for products under HS Code 848710:
As per the latest trade data available on Ekport, there were 179% more exports to India for HS Code 848710 which includes Ship’s or boat’s propellers and blades. Exports to India for HS Code 848710 was USD 4.3 Million during Year 1 (Mar 2016 to Feb 2017) and it increased to USD 11.9 Million during Year 2 (Mar 2017 to Feb 2018).
Exports from top 6 countries with cost per unit of more than USD 1000 for products under HS Code 848710:
The top countries exporting to India for products under HS Code 848710 with average cost per unit >USD 1000 are Germany (USD 4.9 Million), Finland (USD 3.5 Million), France (USD 1.2 Million), Japan (USD 1.2 Million), Norway (USD 0.345 Million) and Netherland (USD 0.24 Million). During Year 2, these top 6 countries accounted for USD 11.35 Million out of a total of USD 11.9 Million exports to India for products under HS Code 848710.
Graph1: Exports to India from top 6 countries with average cost>USD 1K per unit for HS Code 848710
From Graph 1 above, it can be seen that the exports to India in Year 2 for products under HS Code 848710 has increased from top 5 exporting countries, except Norway. Germany and Finland were the leading exporting countries to do More Exports to India for products under HS Code 848710. Though Germany and Finland were leading exporters, this analysis was purely on the basis of Amount, if we analyse on the basis of quantity then Germany exported 239 units of products under HS Code 848710 at a price of USD 20.6K, Finland exported 2 units at a price of USD 1.75 Million per unit, France exported 446 units at a price of USD 2.7 K Thousand per quantity, Japan exported 352 quantity at USD 3.4 Thousand per quantity, Norway exported 15 quantity at USD 23 Thousand and Netherlands exported 2 quantity at USD 119.9 Thousand per quantity. Out of the top five Finland exported only 2 quantity of product under HS Code 848710, but still is the second largest country to export products under HS Code 848710 in terms of amount, these products from finland may be high end products used for huge ships and submarines.Quantity wise Japan exported the highest products under HS Code 848710, these products maybe for small ships and boats and hence the price is less as compared to Finland. The decrease in the exports from Norway maybe due to the fact that the products coming from there would be of the same quality as of Japan and France and still they are prices high compared to the price of products coming from Japan and France. It is really unpredictable to say that who is doing more exports to India for products under HS Code 848710.
Exports from Countries with cost per unit less than USD 1 Thousand for products under HS Code 848710:
The new entrant countries which are seeing a massive opportunity to start exporting to India for products under HS Code 848710 are UK (USD 88.1 Thousand), South Korea (USD 87.2 Thousand), China(USD 81 Thousand), Thailand(USD 51.7 Thousand). During Year 1 South Korea and Thailand didn’t export anything but they made a market entry in Year, the increasing of products under HS Code 848710 globally to India (179%) is a strong indication for countries Like Korea and Thailand to have more exports to India for products under HS Code 848710 in future as well..
Graph2: Exports to India from countries with average cost<1K per unit for HS Code 848710
From Graph 2 above, it can be seen that the exports to India in Year 2 for products under HS Code 848710 has increased from new entrant exporting countries.South Korea and Thailand were the exporting countries who have started the race of doing More Exports to India for products under HS Code 848710,if we analyse on the basis of quantity then UK exported 277 quantity at a price of USD 318 per quantity of products under HS Code 848710, South Korea exported 277 quantity of products under HS Code 848710 at a price of USD 318 per quantity, China exported 2.8K quantity at a rate of USD 29 per quantity, Thailand exported 3.7K quantity at USD 14 per quantity, the price of products under HS Code 848710 was much less as compared to the top 6 countries, but the quantity is huge, the reason may be these products are used in small ships and boats which are mainly used for tourism as India is one of the largest tourism hub all over the world.
Why Korea and other countries should focus on doing More exports to India for products under HS Code 848710:
There are two geographical factors that put the Indian maritime sector at an advantageous position – the vast coastline of 7,500 km and the strategic location along most major shipping highways. For years, the maritime routes have been used for trade and a show of strategic strength. Today, the country boasts of a modern shipbuilding and shipping sector, replete with all the variables necessary for overall industrial growth and hence the imports of products under HS Code 848710 has increased.
Combined, these factors provide a strong basis to attract big investments in the Indian maritime sector. In fact, as per Prime Minister Narendra Modi, the sector has huge potential to become, “the engine of growth” for India, and many countries have offered hand for the industrial growth of Maritime industry and South Korea is one of them.Republic of Korea(ROK) offered to provide US$10 billion financing (development assistance and concessional credit) to India for infrastructure projects. Recognizing the importance of shipping industry in the bilateral relationship, PM also visited Shipyard of Hyundai Heavy Industries in Ulsan. Leaders of both countries addressed the inaugural session of India-Korea CEOs Forum to promote the bilateral economic cooperation, while PM also met the leadership of the top Korean conglomerates.Increased investments together with the ‘Make in India’ impetus can increase the sector’s contribution to GDP and trade volumes. The government has launched a number of major initiatives such as the Sagarmala project, ports modernization and Inland Waterways & Coastal Shipping development. The increasing public-private partnership in response to these initiatives adds to the vibrancy of the sector and is a clear sign of resurged interest in its potential. What this also means is that public and private players are now more eager than ever to play a bigger role.
Maritime Summit was held for the first time from April 14th-16th, 2016 the objective of the summit was to create awareness about the potential in the Maritime industry and tap the investment opportunities for the same.Secretary General of International Maritime Organisation, Mr. Kitack Lim and Minister of Oceans and Fisheries, Republic of Korea, Mr. Kim-Young Suk also addressed the gathering during the Inaugural Session. Republic of Korea was the Partner Country for the Summit. A delegation from Republic of Korea led by Minister of Oceans and Fisheries along with two Deputy Ministers, senior Government officials and representatives of over 50 maritime sector companies participated in the Summit. The involvement of the Korean Government in the progress of Maritime industry indicates that Korean Government is finding a niche in this area and trying to expand their hands for the betterment of the Indian Maritime industry development so that in future Korean companies can have More Exports of the products under HS Code 848710 to India.
What are the custom duties and taxes applicable for the HS Code 848710:
The import customs and duties play a major role for exporters to export their products globally, cause at the end the final price of the product with duties and taxes decide whether the product is affordable for the target audience or not. To solve this problem we provide with the custom duties and taxes applicable for HS Code 848710.
For products under HS Code 848710 the Basic Custom Duty(BCD), is 7.5% and Social Welfare Surcharge(SWS) is 10% of (BCD) and there was a preferential notification-050/2018-A1030,after the addition of preferential notification, the Basic Custom Duty decreased to 4125, 55% less than the earlier BCD. The indirect tax, known as GST(Goods & Services Tax) will be levied in a similar way it is applicable for all other domestic goods in India. Currently the GST rate is 18% of (AV+BCD+SWS) where AV= Assessed Value.
For example, if the product’s Assessed Value (AV) is USD 100,000.
Basic Customs Duty (BCD): 7.5% of (100,000) = USD 7500
Basic Custom Duty after Preferential Notification= USD 4125
Social Welfare Surcharge (SWS): 10% of (BCD) = USD 750
Social Welfare surcharge after Preferential Notification= USD 412.5
GST = 18% (AV+BCD+SCD): 18% of (100,000 + 7500+ 750) = USD 19485
GST after Preferential Notice= 18%of(100,00+4125+412.5)= USD 18817
Total Amount after paying customs duty and GST: USD 127735
Total Amount after paying customs duty and GST after Preferential Notice: USD 123354
Who is Importing the products under HS Code 848710:
The products under HS Code 848710 is mainly imported in the cities like Cochin, Mumbai and Hyderabad. Based on Ekport Lead Generator, some of the companies that import products under HS Code 848710 in Mumbai are: Micron, Killick Agency and Marketing Limited, NASS Engineering Services and in Cochin:Safe industries and Marine stores, SMI Propellers,Saraswathi Metal Works.
Ekport is being used by many importers in India to discover global import opportunities and connect with exporters worldwide.Global exporters can easily and quickly find and connect importers of their products in India by using Ekport Lead Generator accessible to signed up members. Request Special Access to Ekport (here).