European countries doing more exports to India for Aluminium Structures and Plates (HSCode 761090)
47% More Exports of Aluminium structures and plates to India (HS Code 761090
As per the trade data available on Ekport, there was 47% more exports to India for HS Code 761090 which are categorised as “Other” with no single classification. Products under HS Code 761090 are sub-categorised which includes large containers (more than 300 litres), tanks, vats, etc made of aluminium for storing material (other than compressed or liquified gas) that are not mechanically fitted and not made of rubber and polymer material. Aluminium plates,rods,profiles, tubes, structures and other related structures fall under HS Code 761090.The local Indian regulation, tax, custom duty, policy enforcement and Indian authority further bifurcates / classifies the products under HS Code 761090 using an 8-digit ITC Code. Exports to India for HS Code 761090 was USD 82.9 Million during Year 1 (Mar 2016-Feb 2017) and it increased to USD 121.4 Million in Year 2 (Mar 2017-Feb 2018)
Graph1: Global exports to India for HS Code 761090 (aluminium structures and plates) in USD Million.
The above chart depicts the year-on year comparison for global exports to India for HS Code 761090 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 every month in Year 2 in comparison to Year 1,especially in the months of November it increased by 77%, January by 88% and February by 106%. A major reason for this sustained increase in exports of products under HS Code 761090 which are further sub-categorised, as aluminum plates, rods, structures and water storage containers. India lacks technical skillset and neglects expenditure on research and development to develop newer designs and innovations. The rising production costs of raw material like coal, alumina etc. used to make aluminum extrusions have increased in the international markets. Lack of government assistance, high power costs, no subsides and thinner margins have stagnated dometic manufacturing. Local smelters in producing aluminium parts, lack production capabilities limited understanding of methods to produce larger castings, insufficient tools and absence of automation results in unfinished parts of aluminium products. Rising investments, growing economy, infrastructure development projects, aided by a growing automobile and power sector and Government of India’s “Housing for All” and “Power for All” will give a thrust in demand for products under HS Code 761090.
Indian Trade Classification for products under HS Code 761090
As per the International Harmonized System, for HS Code 761090 which includes products categorised as “Other” with no single classification. Products under HS Code 761090 are sub categorised which includes large containers (more than 300 litres), tanks, vats, etc made of aluminium for storing material (other than compressed or liquified gas) and that are not mechanically fitted and not made of rubber and polymer material. Aluminium plates,rods,profiles, tubes, structures and other related structures fall under HS Code 761090. The local Indian regulation, tax, custom duty, policy enforcement and Indian authority further bifurcates / classifies the products under HS Code 761090 using an 8-digit ITC Code.For example, Structures (ITC Code 761090 10), Parts of structures, not specified (ITC Code 761090 20), Aluminium plates, rods, profiles, tubes (ITC Code 830160 00),Large containers (more than 300 litres), tanks, vats, etc made of aluminium for storing material (other than compressed or liquified gas) and that are not mechanically fitted (ITC Code 761100 00) and products which are not classified but are clubbed as “Other” (ITC Code 761090 90). These HS Codes together amounted to USD 121.4 Million worth of India’s Imports during Year 2 which indicates a strong demand for products under HS Code 761090 in India.
Top 5 Countries doing more exports to India for HS Code 761090
Increasing market demand for Aluminium extrusion products from Building and Construction in India has opened opportunities for many new and existing exporting countries nations to do more exports to India to cater its market demand for aluminum extrusion products.The top 5 countries that do more exports to India for HS Code 761090 are China (USD 54.4 Million) Korea RP (USD 17.4 Million), United Arab Emirates (USD 9.8 Million), Germany (USD 9.6 Million) and Malasiya (USD 5.6 Million). The collective amount of exports from the top 5 countries is USD 96.8 Million which accounts for 80% of total exports to India in year 2 alone. Though Finland 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.
Finland’s peer group doing more exports to India for HS Code 761090
At Ekport, we have analysed countries like Finland, who have done more than USD 100K exports to India for HS Code 761090 in Year 1, but have significantly increased their exports during Year 2.
Graph2: Exports to India for HS Code 761090 (aluminium structures and plates) by countries with less than USD 100K.
Graph2 shows the countries that did more than USD 100K of exports of HS Code 761090 to India during Year 1. It can be observed that all the countries in Graph2 have increased their exports to India for HS Code 761090 during Year 2. Spain,Italy and Switzerland led the list followed by Belgium and Finland. Finland’s increase in exports to India for HS Code 761090 was 1106%, which was one of the more significant increases in its peer group.
Graph3: Percentage increase in exports to India for HS Code 761090 (aluminium structures and plates) by countries with less than USD 100K.
Graph3 shows percentage increase in exports to India for products under HS Code 761090 are Finland, Switzerland and Spain top exporting countries to India followed by Belgium and Italy amongst its peer group from Graph1. We consider that amongst its peers, Finland is amongst the new exporters who have the potential to become one of the strongest exporters of products under HS Code 761090 to India. Products offered by countries Finland, Italy and Belgium are in the range of USD 11-20 per kgs whereas products of Spain is priced at USD 4 per kgs and products of Switzerland is priced at USD 27 per kgs. This data shows that Belgium and Switzerland are able to tap the segment of Indian market that values higher quality product enough to pay a premium for it. Finnish products are renowned for their superior quality all over the world. Finland plays a significant role in aluminium extrusion products such as Louvers, rods and structures exports to India. Finnish aluminium products comply with European EN Standards and all the alloy used in production recyclable. The 100 smart cities initiative by the government would aid the development of the power sector, building and construction industry and consumer durables segment will give a boost in consumption of products under HS Code 761090. Building and Construction industry are witnessing change in habits of customers who have become quality conscious looking for better architectural applications like windows, doors, facades and curtain walls etc. Increasing investments, booming real estate sector are the underlying growth factor aided by automobile and power sectors. Finnish companies such as Nordic Aluminium , Purso and Alupro Oy shall take note of these initiatives by Government of India, already booming real estate sector with a shift in consumer habits for more aesthetic architectural designs and innovations.
What are the duties and taxes applicable for products under HS Code 761090
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 761090 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 761090 is 30.98%.
Who is Importing products under HS Code 760190?
Majority of Infrastructure development projects are carried out in Maharashtra, Gujarat Chennai which is evident from the initiative taken by Government of India’s smart mission to develop low cost homes. As per Ekport lead generator companies that import products under HS Code 761090 are IBK Engineers Private Limited from Mumbai, Inox Steel India from India, Overseas Aluminium from Mumbai, Rathod Industries from Mumbai, Talco Aluminium Company from Chennai, PS Coats from Chennai and SR Aluminium from Hyderabad.