Furniture and fixtures (HSCode 830241) from Australia gives Indian homes a face-lift
8% More exports from Australia to India for HS Code 830241
As per the trade data available on Ekport, there was 8% more exports to India for HS Code 830241 which includes products categorised as “Suitable for Building” which includes automatic door closers, fittings for doors, tower bolts, filing cabinets and various other furniture excluding office furniture. Exports to India for HS Code 830241 was USD 56.7 Million during Year 1 (Mar 2016-Feb 2017) and it increased to USD 61.6 Million in Year 2 (Mar 2017-Feb 2018)
Graph1: Global Exports to India for HS Code 830241 (furniture and fixtures) in USD Million.
The above chart shows the year-on year comparison for global exports to India for HS Code 830241 during Year 1 (Mar 2016- Feb 2017) and Year 2 (Mar 2017 - Feb 2018) Graph1 shows that exports to India have witnessed erratic increases in Year 2 in comparison to Year 1 and in the month of April it increased by 52% and February by 37%. Increasing investments for infrastructure development projects, a booming real estate market as a result of growing economy, rising income levels in the country and adapting modern way of living. Green homes, new designs, fixtures coupled with technology functionality installed in homes has been on the rise. Indian furniture industry which makes home furniture, window, doors etc is dominated by the unorganised sector which accounts for 85% of furniture production. Domestic manufacturing of furniture accessories happens on “made to order basis” made by carpenters influenced by traditional designs which consumes time and money. Organised sector like Godrej Interio, Durian and Furniture Concepts accounts for small production in comparison to the unorganised sector. Furniture and Homeware market chairs, automatic door closer, window fittings, armoured safes etc. Low technological value and lack of innovations in the furniture and homeware industry, lack of regulation and standards are some of the main factors for stagnant domestic production. Growth in residential apartments and development of smart cities provides a comprehensive demand for furniture and homeware products under HS Code 830241.Increasing awareness among Indian consumers which traditionally focused on furniture and furnishing in the living room, of-late have increased consciousness about the interiors and decor of homes because people have identified homes as a reflection of themselves. Opportunities continue to thrive driven by socio -economic environment changes, increasing income levels to spend on improved lifestyles as a result of easy loan schemes from banks and government.
Indian Trade Classification for products under HS Code 830241
As per the International Harmonized System, includes products “Suitable for Building” which includes automatic door closers, fittings for doors, tower bolts, filing cabinets, safe deposit lockers and various other suitable furniture. For local Indian regulation, tax, custom duty and policy enforcement, Indian authority further bifurcates / classifies the products under HS Code 830241 using an 8-digit ITC Code. For example Fittings for door and windows (ITC Code 830241 10), Tower bolts (ITC Code 830241 20), Other suitable furniture (ITC Code 830242 00), Hat racks, brackets,pegs and other similar fixtures(ITC Code 830250 00), Automatic door closers (ITC Code 830260 00), Armoured safes which includes deposit lockers for rooms, deed boxes which are of base metal (ITC Code 830300 00), Hard filing index cabinets and trays including pen and paper, office-stamp stands and similar office or desk equipment made of base metal which excludes office furniture (ITC Code 830400 00) and products which are not classified but clubbed as “Other” (ITC Code 830249 00). These HS Codes together amounted to USD 61.6 Million worth of India’s Imports during Year 2 which indicates a steady demand for products under HS Code 830241 in India.
Top 5 Countries doing more exports to India for HS Code 830241
Rapid urbanization, growing economy ,increase in income levels and increasing building & construction activities for residential and commercial activities in cities like Bangalore, Kolkata and Mumbai has opened opportunities for new and existing exporters to do more exports to India for products under HS Code 830241.The top 5 countries that do more exports to India for HS Code 830241 are China (USD 36.8 Million) Germany (USD 5 Million), Taiwan (USD 4.3 Million), Italy (USD 3.5 Million) and Korea RP (USD 2 Million) The collective amount of exports from the top 5 countries is USD 51.6 Million which is 84% of total exports to India in year 2 alone. Though Australia is not amongst the top 5 exporters for this product, it is increasing its exports to India at one of the fastest rates compared to new exporters to India for products under HS Code 830241.
Australia’s peer group doing more exports to India for HS Code 830241
At Ekport, we have analysed countries like Australia, who have done more than USD 100K exports to India for HS Code 830241 in Year 1 and since then have significantly increased their exports during Year 2.
Graph2: Exports to India for HS Code 830241 (furniture and fixtures) by countries with >USD 100K exports during Year 1 (in USD Thousand).
Graph2 shows the countries that did more than USD 100K of exports of HS Code 830241 to India during Year 1. It can be observed that all the countries in Graph2 have done more exports to India for HS Code 830241 during Year 2. Russia and Oman are respectively new exporting countries to India for HS Code 830241. Malaysia, Australia and France are leading exporter for HS Code 830241 amongst its peer group. Australia’s increase in exports to India for HS Code 830241 was 106%, which was one of the more significant increases in its peer group.
Graph3: Increase in exports to India for HS Code 830241(furniture and fixtures) by countries with >USD 100K exports during Year 1.
Graph3 shows that Russia, Malaysia and Oman are top exporting countries to India followed by Australia and France. Russia and Oman are relatively new exporters to India for products under HS Code 830241 The collective increase in exports to India amounts to USD 1.14 Million for Year 2 in comparison to Year 1. We consider that amongst its peers, Australia is amongst the new exporters who have the potential to become one of the strongest exporters of HS Code 830241 to India. Products offered by countries like Russia,Malaysia and Oman are in the range of USD 10-15 per kgs whereas products of Australia is priced at USD 52 per kgs and products of Indonesia is priced at USD 25 per kgs. This data shows that Australia and France are able to tap the segment of Indian market that values higher quality product enough to pay a premium for it. Australian products are renowned for their superior quality all over the world.Lack of regulations and government standards for quality home furnishing products has created a wide gap between demand and supply. According to a report published by Hong Kong Trade Development Council has said that the Indian furniture and home furnishing market is expected to reach USD 27 Billion by 2022. Indian consumers are opting for better-quality products related home furnishing such as windows, doors and other related fixtures. Australian window and doors are recognised as one of the best, the Australian Standards AS2047 is tested for deflection test, operating force test, air infiltration test, water penetration resistance test and ultimate strength test. All members of Australian Window Association (AWA) shall seek opportunity to connect and build strong partnerships with local Indian distributors/buyers as Indian consumers seek more contemporary designs and increasing spending on improved home lifestyles.
What are the duties and taxes applicable for products under HS Code 830241
The import customs and duties play a major role for exporters to export their products globally, because 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. For HS Code 830140 the Basic Custom Duty (BCD) is 10%. The indirect tax, known as Goods & Services Tax (GST) 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+SCD) where AV= Assessed Value.
For example, if the product’s Assessed Value (AV) is USD 100,000
Basic Customs Duty (BCD) 10% of (AV) = USD 10,000
Special Customs Duty (SCD) 10% of (BCD) = USD 1,000
GST = 18% (AV+BCD+SCD) 18% of (100,000 + 10,000 + 1,000) = USD 30,980
Total Amount after paying customs duty and GST will be USD 130,980 and the total effective duty applicable on products under HS Code 830241 is 30.98%.
Who is importing products under HS Code 830241?
Increasing amount of infrastructure development projects undertaking in major cities like Bangalore, Delhi, Kolkata and Mumbai to build smart homes has caused an increasing demand for furniture, automatic door closers, window fittings,safe deposit lockers and necessary products that fall under HS Code 830241. As per Ekport lead generator companies that import products under HS Code 830241 are Basic doors from Pune, Glass Concept from Bangalore, Vinni Sales from New Delhi, Nine Bearings from Mumbai and Pranav Enterprises from Chennai are some of India’s major importers/buyers in India.
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)