More exports to India of Machines and Apparatus needed for manufacturing flat panel display TVs (HSCode 848630)
62% More Exports to India for products under HS Code 848630:
As per the latest trade data available on Ekport, there were 62% more exports to India for HS Code 848630 which includes Machines and apparatus for the manufacture of flat panel displays.Exports to India for products under HS Code 848630 was USD 1.3 Million during Year 1 (Mar 2016 to Feb 2017) and it increased to USD 2.1 Million during Year 2 (Mar 2017 to Feb 2018).
Graph 1: Global Exports to India for HS Code 848630(Machines and apparatus for the manufacture of flat panel displays)
The only Countries Doing More Exports to India for products under HS Code 848630:
The four countries exporting to India for products under HS Code 848630 in Year 1 are China (USD 1.2 Million), Italy(USD 86.1 Thousand), Singapore (USD 20.8 Thousand), Taiwan(USD 7.6 Thousand) . During Year 2 countries exporting to India for products under HS Code 848630 are China( USD 1.5 Million), Italy(USD 469.6 Thousand), USA(USD 154.7 Thousand) and South Korea(USD 14.0 Thousand). China and Italy are leading countries to export Machines and apparatus for the manufacture of flat panel displays under HS Code 848630 in India. In Year 1 USA and South Korea were not even exporting product under HS code 848630, they replaced Singapore and Taiwan to become one of the only countries to export products under HS Code 848630.
Why Korea should focus on doing More exports to India for products under HS Code 848630:
South Korea as discussed was not even exporting products under HS Code 848630 in Year 1 and started exporting in Year 2, Though China has the maximum exports to India for products under HS Code 848630 but due to the tensions mounting between China and India in the recent past indicates an awesome opportunity for other countries like South Korea to have More Exports to India and have a huge market share for the same.
South Korea and India’s bilateral trade has seen a bloom in the recent years due to the efforts put by both the government to enhance the bilateral trade between both the nations and also the presence of KOTRA- state-funded trade and investment promotion organization operated by the Government of South Korea in the cities Mumbai, Delhi, Kolkata and Bangalore of India is heavily working to bring Korean products in India and look India in a big way to have more exports,and also for the fact that Korea is looking India in a big way for other products as well and the bitter relationship between India and Korea would help Korea establish a place in Indian market. The main reason for increase in imports of products under HS Code 848630 is the increase of import duties for panels used in Television in the Union Budget passed, would boost the manufacturing of flat panels which are used in Television,as importing them would increase the cost of Televisions(TV) .Manufactures have welcomed the move by the government claiming that it would help increase the domestic manufacturing industry. While, presenting the budget, Finance Minister Arun Jaitley proposed to double customs duty on imported panels to 15% from existing the 7.5%. The government has also increased the customs duty on parts of LCD/LED/OLED TVs to 15% from the existing 10% to boost domestic manufacturing.This would indeed boost the Make in India initiative proposed by Prime Minister Mr. Modi in 2014. For the manufacturing of Local Televisions(TV) in India, manufacturing of flat panels used in it plays a important role, so to fulfil the needs of manufacturing sector, well equipped machines and apparatus are required, for that India imports products under HS Code 848630 from different countries so that efficient tools and machines are available while manufacturing.
What are the custom duties and taxes applicable for the HS Code 848630:
The import customs and duties play a major role for exporters to export their products globally, cause 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. To solve this problem we provide with the custom duties and taxes applicable for HS Code 848630.
For products under HS Code 848630, the Basic Custom Duty(BCD) is 7.5% and Social Welfare Surcharge(SWS) is 10%of (BCD).The indirect tax, known as GST(Goods & Services Tax) 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+SWS) where AV= Assessed Value.
For example, if the product’s Assessed Value (AV) is USD 100,000.
Basic Customs Duty (BCD): 7.5% of (100,000) = USD 7500
Social Welfare surcharge (SWS): 10% of (BCD) = USD 750
GST = 18% (AV+BCD+SWS): 18% of (100,000 + 7500 + 750) = USD 19485
Total Amount after paying customs duty and GST: USD 127,735