30% Increase in spa centers results more exports of Sauna chairs (HSCode 940169) to India
21% More exports to India for sauna chairs (HS Code 940169
As per the trade data available on Ekport, there was 21% more exports to India for HS Code 940169 which are categorised as “Other” with no single classification.Products under HS Code 940169 are sub-categories which are available in wooden frames and upholstered.The local Indian regulation, tax, custom duty, policy enforcement and Indian authority further bifurcates / classifies the products under HS Code 940169 using an 8-digit ITC Code. Exports to India for HS Code 940169 was USD 8.9 Million during Year 1 (Mar 2016-Feb 2017) and it increased to USD 10.8 Million in Year 2 (Mar 2017-Feb 2018)
Graph1: Global exports to India for HS Code 940169 (sauna chairs) in USD Thousand.
The above chart depicts the year-on year comparison for global exports to India for HS Code 940169 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 increased variably over every month in Year 2 in comparison to Year 1,especially in the months of July it increased by 202%, November by 98% and December by 97%. A major reason for this variable increase in exports of sauna chairs is that fundamentally India lacks capacity and capability of manufacturing of sauna chairs.Domestic manufacturing does not exist as it requires huge capital investment, research & development for developing the product and absence of product knowledge are contributing factors. The culture of “Sauna” which is prevalent in European countries mainly Finland and Sweden have started to export their products to India. The increasing awareness about health and proper lifestyles, disposable income levels and change in consumption patterns has resulted in establishments of wellness and health centres. Growing popularity of fitness in the country with prime minister Narendra Modi's’ campaign “Hum Fit toh India Fit” that addresses fitness and healthy lifestyle has accelerated physical presence of fitness centres in cities like Delhi, Mumbai And Bangalore. Medical benefits associated with Sauna and Steam are the same but their setup is different the former is made up of glass surrounding wherein the steam is generated using an external steam generator passed through a nozzle and the latter is made out of wood and an internal stove generates heat upto 70 degrees celsius which help in blood circulation, weight management, flexes muscles and eases joint pain. The huge prospect in the spa industry is driven by increasing disposable income levels, workload pressure and a deteriorating lifestyle with bad habits to which the wellness and spa industry has accelerated with membership benefits to both male and female and continuing to expand 30% every year by setting wellness centers coupled with sauna across Bangalore, Mumbai and Chennai.
Indian Trade Classification for products under HS Code 940169
As per the International Harmonized System, for HS Code 940169 products are categorised as “Other” with no single classification. Products under HS Code 940169 are sub categories which are available in wooden frames and upholstered. The local Indian regulation, tax, custom duty, policy enforcement and Indian authority further bifurcates / classifies the products under HS Code 940169 using an 8-digit ITC Code.For example, Upholstered (ITC Code 940161 00) and products which are not classified but are clubbed as “Other” (ITC Code 940169 00). These HS Codes together amounted to USD 10.8 Million worth of India’s Imports during Year 2 which indicates a strong demand for products under HS Code 940169 in India.
Top 5 Countries doing more exports to India for HS Code 940169
Increasing market demand for sauna chair as a result of expanding wellness centres and growing hospitality sector in India has opened opportunities for many new and exiting exporting countries to make their presence felt with more exports to India to cater its market demand for sauna chairs.The top 5 countries that do more exports to India for HS Code 940169 are China RP (USD 3.9 Million) Malaysia (USD 1.6 Million), Indonesia (USD 1.4 Million), Italy (USD 0.79 Million) and Sri Lanka DSR (USD 0.69 Million). The collective amount of exports from the top 5 countries is USD 8.38 Million which accounts for 80% of total exports to India in year 2 alone. Though Sweden 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.
Sweden’s peer group doing more exports to India for HS Code 940169
At Ekport, we have analysed countries like Sweden, who have done less than USD 100K 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 940169 (sauna chairs) by countries with exports less than USD 100K
Graph2 shows the countries that did less than USD 100K of exports of HS Code 940169 to India during Year 1. It can be observed that all the countries in Graph2 have done more exports to India for HS Code 940169 during Year 2. Turkey, Spain and Sweden led the list followed by Norway and Switzerland. Norway is a new exporting country to join the list amongst it peers. Sweden's’ increase in exports to India for HS Code 940169 was 137%, which was one of the more significant increases in its peer group.
Graph3: Increase in exports to India for HS Code 940169 (sauna chairs) by countries with exports less than USD 100K
Graph3 shows that Turkey, Spain and Sweden are top exporting countries to India followed by Switzerland and Norway, which is a new exporting country in Year 2. The collective increase in exports to India amounts to USD 429.2K for Year 2 in comparison to Year 1. We consider that amongst its peers, Sweden and Norway are amongst the new exporters who have the potential to become strongest exporters of HS Code 940169 to India. Products offered by countries like Spain, Switzerland and Turkey, are in the range of USD 250-500 per unit whereas products of Norway is priced at USD 173 per unit and products of Sweden is priced at USD 929 per unit. This data shows that Sweden and Norway are able to tap the segment of Indian market that values higher quality product enough to pay a premium for it. Sweden products are renowned for their superior quality all over the world. Changing lifestyle patterns, increasing income level in India and to live an improved personal lifestyle has led to a 30% increase in personal grooming. Expenditure on fitness memberships programs, wellness centres have increased dramatically as widespread benefits of sauna is catching on-to the minds of Indian consumers.
What are the duties and taxes applicable for products under HS Code 940169
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 940169 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 940169 is 43.96%.
Who is Importing products under HS Code 940169?
As per Ekport lead generator companies that import products under HS Code 940169 are Royal Far Infrared Sauna & Massagers from New Delhi, Kawachi Group from Mumbai, Aanjay E Solutions from Haryana and Sakhi Enterprises from New Delhi are some of Mumbai based compandia’s major importers/buyers in India.