Singapore witnesses 11X increase in exports of swivel seats with height adjustment (HSCode 940130) to India
India imports USD 25.8 Million swivel chairs with variable height adjustment (HS Code 940130)
As per the trade data available on Ekport, there was 29% more exports to India for HS Code 940130 which are swivel seats with variable height adjustment. Exports to India for HS Code 940130 was USD 20 Million during Year 1 (Mar 2016-Feb 2017) and it increased to USD 25.8 Million in Year 2 (Mar 2017-Feb 2018)
Graph1: Global exports to India for HS Code 940130 (swivel seats with height adjustment) in USD Million.
The above chart shows the year-on year comparison for global exports to India for HS Code 940130 during Year 1 (Mar 2016- Feb 2017) and Year 2 (Mar 2017 - Feb 2018) Graph 1 shows that exports to India have increased steadily in Year 2 in comparison to Year 1 and in the month of June it increased by 117%, July by 176% and January by 188%. Increasing infrastructure development projects, growing economy, increasing income levels and booming real estate market, has led to an overwhelming increase for commercial and office space in India. Indian furniture industry is dominated by the unorganised sector which accounts for 85% of furniture production. Domestic manufacturing of furniture happens on “made to order basis” made by carpenters influenced by traditional designs which consumes more time and money. Low technological expertise and lack of innovations in the furniture industry contribute marginally to the Indian economy, office furniture segment is the growing sector which generates revenue. Organised sector includes players like Godrej Interio, Durian and Furniture Concepts accounts for small production in comparison to the unorganised sector. Office furniture market includes office chairs with height adjustment, stools, benches and ergonomic chairs, which corrects sitting posture taking back pressure off the back and reduce pain levels while working and sitting long hours. Leasing office pace in India is cost- effective compared to many Western countries, a booming Information Technology sector and increasing industrial hubs with top-end infrastructure facilities has paved the way for more exports to India for products under HS Code 940130 as the the Indian office furniture segment wants more branded, new-design innovations and ready-made office furniture, seats with height adjustment rather than made to order basis.
Indian Trade Classification for products under HS Code 940130
As per the International Harmonized System, swivel chair seats with variable height adjustment for HS Code 940130 are categorised for International trade. For local Indian regulation, tax, custom duty and policy enforcement, Indian authority further bifurcates / classifies the products under HS Code 940130 using an 8-digit ITC Code. For example: Seats used for aircraft (ITC Code 940110 00), Seats used for motor vehicles (ITC Code 940120 00), Seats that convert into beds, camping equipment ,other than garden seats (ITC Code 940140 00). These HS Codes together amounted to USD 25.8 Million worth of India’s Imports during Year 2 which indicates a steady demand for HS Code 940130 in India.
Top 5 Countries doing more exports to India for HS Code 940130
Increasing market demand for commercial and office space in India with a booming real estate scene has opened opportunities for many new and existing exporting countries to do more exports to India for products under HS Code 940130. The top 5 countries that do more exports to India for HS Code 930140 are Malasiya (USD 12.8 Million) China (USD 5.9 Million), USA (USD 2.3 Million), Singapore (USD 1.9 Million) and Sri Lanka DSR (USD 0.85 Million) . The collective amount of exports from the top 5 countries is USD 23.75 Million which is 92% of total exports to India in year 2 alone. Singapore is amongst the top 5 exporters for HS Code 940130 its increase in exports to India was 1187% one of the more significant increases amongst other leading export countries to India.
Singapore’s peer group doing more exports to India for HS Code 940130
At Ekport, we have analysed countries like Italy, who have done less than USD 150K exports to India for HS Code 940130 in Year 1, but have significantly increased their exports during Year 2.
Graph2: Exports to India for HS Code 940130 (swivel seats with height adjustment) by countries with less than USD 150K
Graph2 shows the countries that did less than USD 150K of exports of HS Code 940130 to India during Year 1. It can be observed that all the countries in Graph2 have done more exports to India for HS Code 940130 during Year 2.In Graph2 we can see that Singapore, Italy, Canada, which is a new exporting country followed by Turkey, Netherlands and Norway are leading exporters. Turkey has the most strongest increase in exports of HS Code 940130 by 1677% followed by Singapore 1187%, Norway 153%, Italy 142% and Netherlands 129%.
Graph3: Increase in exports to India for HS Code 940130 (swivel seats with height adjustment) by countries with less than USD 150K
Graph3 shows that Singapore,Canada,Italy and Turkey are top exporting countries to India followed by Netherland and Norway. The collective increase in exports to India amounts to USD 2.3 Million for Year 2 in comparison to Year 1. We consider that amongst its peers Singapore, Canada, Turkey and Norway are amongst the newest exporters who have the potential to become one of the strongest exporters of products under HS Code 940130 to India. The products offered by countries like Canada, Norway, Netherlands and Singapore are in the range of below USD 350-450 per unit whereas products of Italy and Turkey are in the range of USD 450-650 per unit. This data shows Canada, Norway, Turkey and Singapore are able to tap the segment of Indian market that values higher quality product enough to pay a premium for it. Singaporean products are renowned for their superior quality all over the world. Singapore plays a significant role in exports of swivel chairs to India. Singapore furniture manufacturing industry has highest standards for quality. Most of the office furniture which is manufactured are ANSI/BIFMA tested for its product functionality and GreenGuard Certification for low chemical emissions. Innovative designs and technological advancement would increase job productivity and satisfaction. According to industry experts, the growth of Indian office space is set to reach 100 Million Square feet of Grade A, office space.Growing investments from overseas and local companies for office space in cities like Bangalore, Hyderabad and Mumbai which offer lower price tags and resourceful skilled manpower would increase the demand for office furniture and chairs as locally made furniture are not according to international standards lack design and innovation.Peugeot, Hyundai and Saint Gobain have increased investments for office space in Chennai. Microsoft, IBM and Cognizant have leased offices in Technology hub Bangalore. Financial institutions like Bharti Axa Life and General Insurance companies, Automobile-to IT giant Mahindra & Mahindra have leased offices in Mumbai.Singapore Furniture Industries Council member companies that are manufacturer/distributor of office chairs such as Ardent Furniture, Benel and Harvest Link International to name a few shall follow the initiatives and developments taking place in the Indian real estate and office space market as increase in office space would result in more exports to India for products under HS Code 940130. Prime Minister, Narendra Modi’s scheme “Housing For All” by 2020 and emergence of E-commerce platforms such as Flipkart and Amazon ensures exports of products under HS Code 940130 to India.
What are the duties and taxes applicable for products under HS Code 940130
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. For HS Code 940130 the Basic Custom Duty (BCD) is 20%. 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) 20% of (AV) = USD 20,000
Special Customs Duty (SCD) 10% of (BCD) = USD 2,000
GST = 18% (AV+BCD+SCD) 18% of (100,000 + 20,000 + 2,000) = USD 43,960
Total Amount after paying customs duty and GST will be USD 143,960 and the total effective duty applicable on products under HS Code 940130 is 43.96%.
Who is Importing products under HS Code 940130?
The majority of products under HS Code 940130 are imported via maritime routes with Becton Dickinson (BD) Banglore accounting for USD 866.6K worth of goods, Visakhapatnam Special Economic Zone, goods worth USD 731.7K, Chennai Sea, goods worth USD 198.2K. As per Ekport lead generator companies that import products under HS Code 940130 are Agate Seating Systems from Chennai, Sastha Furniture from Chennai, R.S Furniture from Chennai,Monarch Ergonomics India Pvt. Ltd from Bangalore, Syscom Seatings from Banglore, Duratek Furniture from Bangalore, Ergo Hygienist Handyman Services Private Limited from Hyderabad and Excel Office Systems from Hyderabad, are some of India’s major importers/buyers in India.