25% increase in India's imports of air purifiers (HSCode 842139) as air quality levels deteriorate
25% More exports to India which include air quality improvement products ( HS Code 842139)
As per the trade data available on Ekport, there was 25% more exports to India for
HS Code 842139 which includes products are categorised as “Other” which has no single classification. Products under HS Code 842139 are sub categorised as air purifiers, air cleaners, air stripper and separators which are used in smelting of minerals, ore and metal industries. Exports to India for HS Code 842139 was USD 186.4 Million during Year 1 (Mar 2016-Feb - 2017) and it increased to USD 232.2 Million in Year 2 (Mar 2017-Feb 2018)
Graph1: Global exports to India for HS Code 842139 (air purifier) in USD Million.
The above chart depicts the year-on year comparison for global exports to India for HS Code 842139 during Year 1 (Mar 2016- Feb 2017) and Year 2 (Mar 2017 Feb 2018) From Graph1 it can be seen that exports to India have been steadily increasing every month in Year 2(Except August & December) in comparison to Year 1,especially in the months of March it increased by 60%, April by 100%, July by 61% and November by 66%. A major reason for the sustained increase is result of rising air pollution in the national capital, New Delhi and the country. A recent study conducted by World Health Organisation(WHO) has said that the air quality in the country has deteriorated to levels of 300mg cubic meter much above the norms of 24mg cubic meter set by WHO. According to a study by WHO, poor indoor Air quality has resulted in deaths of 1.3 Million Indians and accounts for one third of the world’s asthma patients. Increasing infrastructure development activities, burning of crops and burning of firecrackers during “Diwali” which is festival of lights creates smog and deteriorated indoor air quality. Lack of regulation standards, poor understanding of technology has affected the domestic manufacturing capability. Heightened importance of clean indoor air quality, living healthy lifestyle, increasing disposable income and general well being of the people has resulted increasing demand for air purifiers.According to Jayanti Singh, Business Head of Philips India, said that the Indian air purifier market is expected to grow between 55-60% Compounded Annual Growth (CAGR)
Indian Trade Classification for products under HS Code 842139
As per the International Harmonized System, for HS Code 842139 which are categorised as “Other” has no single classification. Products under HS Code 842139 are sub categorised as air purifiers, air cleaners, air stripper and separators which are used in smelting of minerals like ore and metal industries. The local Indian regulation, tax, custom duty, policy enforcement and Indian authority further bifurcates / classifies the products under HS Code 842139 using an 8-digit ITC Code.For example, Air Separators/Strippers used in smelting of minerals, ores and metals (ITC Code 842139 10), Air purifiers or cleaners (ITC Code 842139 20) and products which are not classified but are clubbed as “other” (ITC Code 842139 90). These HS Codes together amounted to USD 232.2 Million worth of India’s Imports during Year 2 which indicates a steady demand for products under HS Code 842139 in India.
Top 5 Countries doing more exports to India for HS Code 842139
Increasing demand for air purifiers and cleaners in India is increasing as it combats poor air quality due to increasing infrastructure projects which has opened opportunities for many new and existing exporting countries who can do more exports to India for air purifier and cleaners. The top 5 countries that do more exports to India for HS Code 842139 are Germany (USD 56.1 Million) China (USD 38.4 Million), USA (USD 28 Million), South Africa (USD 13.3 Million) and Thailand (USD 10.6 Million). The collective amount of exports from the top 5 countries is USD Million which is 63% of total exports to India in year 2 alone.Switzerland is one of the top exporters for this product, it is increasing its exports to India at one of the fastest rates.
Switzerland’s Peer group doing more exports to India for HS Code 842139
At Ekport, we have analysed countries like Switzerland, who have done more than USD 500K exports to India for HS Code 940169 in Year 1, but have significantly increased their exports during Year 2.
Graph2: Exports to India for HS Code 842139 (air purifier) by countries with >USD 500K exports during Year 1 (in USD million).
Graph2 shows the countries that did more than USD 500K of exports of HS Code 842139 to India during Year 1. It can be observed that all the countries in Graph2 have significantly increased their exports to India for products under HS Code 842139 during Year 2. Switzerland,Malaysia, Romania, Turkey and Sweden are the leading exporters amongst it peer group followed by Netherlands,Indonesia and Malaysia. Switzerland’s increase in exports to India for HS Code 842139 was 685% which was one of the more significant increases amongst its peer group.
Graph3: Increase in exports to India HS Code 842139 (air purifier) by countries >500K exports from Year 1.
Graph3 shows that Turkey, Romania and Sweden are the top exporting countries for products under HS Code 842139 followed by Indonesia and Netherlands. The collective increase in exports for products under HS Code 842139 amounts to USD 16.27 Million We consider that amongst its peers, Switzerland is amongst those who have the potential to become one of the strongest exporters of products under HS Code 842139 to India. Products offered by Sweden and Malaysia are in the range of USD 50-75 per unit whereas products of Turkey is priced at USD 160 per unit, products of Netherlands are priced at USD 156 per unit, Romania is priced at USD 166 per unit, products from switzerland is priced at USD 186 per unit and Indonesia at USD 575 per unit. This data shows that Indonesia, Switzerland and Netherlands are able to tap the segment of Indian market that values higher quality product enough to pay a premium for it. Air Purifiers have become an essential hour of the need because even on a good day the air quality is above 180mg per cubic meter according to WHO causing breathing problems and affecting health. A huge surge in demand of air purifiers has generated from hospitality, hospitals homes and offices as air quality deteriorates in the country. Metros like New Delhi, Mumbai, Chennai and Bangalore are worst affected as demand from Tier 2 and Tier 3 cities increase. Products under HS Code 842139 from Switzerland are of the highest quality which contain unique characteristics such as HEPA(High Efficiency Particulate Arrestance) filtration efficiency of 99.5% of all particles down to 0.003 microns and 99% or more for all particles 0.3 microns or larger. Such efficiencies are independently tested and certificate of analysis is provided with the unit. Their units are Ozone free which contains no hazardous gases also all the filtration frames contain a patented seal technology to ensure no leaks. IQAIR and Boneco are leading swiss companies for air purifiers who could see a potential business opportunity in the fragment air purifier market in India. New Delhi accounts for 80% of air purifier sales as a result of poor air quality in Diwali which creates smog and continues till January.
What are the duties and taxes applicable for products under HS Code 842139?
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 842139 the Basic Custom Duty (BCD) is 7.5%.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) 7.5% of (AV) = USD 7,500
Special Customs Duty (SCD)10% of (BCD) = USD 750
GST = 18% (AV+BCD+SCD)18% of (100,000 + 7,500 + 750) = USD 127,735
Total Amount after paying customs duty and GST will be USD 127,735 and the total effective duty applicable on products under HS Code 842139 is 27.73%.
Who is Importing products under Hs Code 842139?
The increasing amount of infrastructure development projects undertaking in major cities like Bangalore, Delhi,and Kolkata to build smart homes has affected the quality of air around it which has led to a surge in demand for air purifiers, stripper and separators in offices and homes. Large amount of combinations lock and necessary products that fall under HS Code 842139. As per Ekport lead generator companies that import products under HS Code 842139 are CIS Engineering from New Delhi, Origin Dehumidifiers from Mumbai, Kores India Limited from Mumbai, ASQ Business Solutions from Bangalore and G K Controls Private Limited from Pune are some of India’s major importers/buyers in India.