Russia racing ahead in exporting products related to power projects (HSCode 98010013)
More Russian Exports to India for products used for Power Project(HS Code 98010013)
As per the latest trade data available on Ekport, there were more exports to India for HS code 98010013 which includes products like items of machinery including prime movers, instruments, apparatus and appliances, control gear and transmission equipment, auxiliary equipment as well as all components (whether finished or not) or raw materials for the manufacture of the aforesaid items and their components, required for the initial setting up of a unit, or the substantial expansion of an existing unit for POWER PROJECT.Exports to India for products under HS Code 98010013 form Russia was USD 80.8 Million during Year 1 (Mar 2016 to Feb 2017) and it increased to USD 252.4 Million during Year 2 (Mar 2017 to Feb 2018).
Graph 1: Russian Exports to India for HS Code 98010013(Products used for Power Project)
The above graph shows a Year-on-Year comparison for monthly Russian exports to India for products used for Power Project (HS Code 98010013). It can be seen from the graph that the exports for the Month of February for Year 2 and March, October and December of Year 1 were significantly High with more than 1000% increase in the exports.This increase is more prominent especially for the month of February of Year 2 with exports having an increase of 4800%. This indicates that recently there has been a noticeable trend towards more exports to India for products used for Power Projects (HS Code 98010013) as the exports for the month of February for Year 2 is highest compared to other months.
Top 5 Countries Doing More Exports to India for products used for Power Projects(HS Code 98010013)
The top countries exporting to India for products under HS Code 98010013 are China (USD 344.1 Million), Russia (USD 252.4 Million), Germany(USD 69.6 Million), South Korea(USD 50.1 Million) and Japan(USD 77.2 Million). During Year 2, these top 5 countries accounted for USD 793.4 Million out of a total of USD 843.1 Million exports to India for products used in Power Projects (HS Code 98010013).
Graph 2:Exports to India from top 5 countries for HS Code 98010013(Products for Power Projects)
From Graph 2 above, it can be seen that the exports to India in Year 2 for products under HS Code 98010013 has increased only from Russia and decreased from other countries. China and Russia were the leading exporting countries to do More Exports to India for products under HS Code 98010013 but only Russia had a positive increase in Year 2.
212% more exports to India! Russia is doing the right things with products under HS Code 98010013.
Graph3: Percentage Increase in Exports to India for HS Code 98010013 from top 5 exporting countries.
Graph3 shows the Percentage Increase and decrease in Exports of products used in Power Projects (HS Code 98010013) to India for the top 5 exporting countries. China being the leader of exporting the products under HS Code 98010013 had a decline of 78% (USD 269.5 Million), Germany also had a decline of 251% (USD 174.9 Million), Japan had a decline of 58% (USD 30.5 Million) the only gainers were Russia and South Korea,outstanding performer was Russia with a massive growth of 212%(USD 171.6 Million) and South Korea had a minimal growth of 15%(USD 6.6 Millions),Russia has outperformed in the race of doing more exports to India for products under HS Code 98010013 in Year 2 which clearly indicates that it is looking to do more exports to India and taking the right steps in this direction. Though China has the maximum exports to India for products under HS Code 98010013 but due to the tensions mounting between China and India in the recent past and also the fact that its exports have decreased in Year 2 indicates an awesome opportunity for other countries like Russia to have More Exports to India and have a huge market share for the same.
India is a leading consumer of power and electricity, just behind China and USA. The developments and innovations in the Sector of Power industry is growing each year and with the initiatives like Make in India, Power to all 24x7, and also the innovations and plannings in solar energy, would boost imports of Power related commodities so that the increasing demand can be met and functioning of the Power Sector runs smoothly with new ideas bumping each day.According to the article released by The Ministry of External Affairs, India, a meeting of Commission was held between the External Affair Minister Sushma Swaraj and Russian Deputy Prime Minister . Mr Dmitry Olegovich Rogozin, to discuss about Trade economic and social relations between both the nations. India and Russia reiterated their strong desire to further broaden their strategic cooperation with emphasis on key sectors such as nuclear energy, space, modernisation, high technology, disaster management, and super computing. A new project was set between the India- Russia cooperation in nuclear energy with the dedication of Unit 1 of the Kudankulam nuclear power project by Indian Prime Minister Modi and Russian President Putin in August 2016. Both sides renewed their commitment to work together on remaining stages of Kudankulam 2,3,4,5 and 6, which is also a Nuclear Power Plant; and other projects through localisation under the Make in India programme. Connectivity was a major theme of discussion during the meeting of the Commission. Implementation of the International North South Transport Corridor (INSTC) project and the launch of the ‘Green Corridor’ project for customs facilitation are major steps towards better connectivity and trade facilitation. The policies and plans implemented by both the parties with mutual cooperation led to Russian doing More Exports to India. In October 2016 17th India-Russia Annual Summit was organised where Russian President Mr. Putin and Indian Prime Minister Mr. Modi had met in Goa, India to discuss about economic cooperation and to discuss strategies on to achieve new economic high between the two nations. One of the topics discussed in the summit was the Energy Bridge where both the sides agreed for successive economic cooperation and Mr. Putin helping India to set up new and better nuclear plants. Both the nation are looking forward in setting Power Projects in India which will eventually lead to More Exports to India for products under HS Code 98010013 (For Power Project) from Russia in future as well.
What are the custom duties and taxes applicable for products HS Code 98010013:
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 98010013.
For products under HS Code 98010013 the Basic Custom Duty(BCD), is 10%, Additional Duty of Customs(ADC) is 12%, Social Welfare Surcharge(SWS) is 10%. 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+ADC+SWS) 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 10000
Addition Duty of Customs (ADC): 12% of (AV) = USD 13200
Social Welfare Surcharge(SWS)= 10% of (BCD+ADC)= USD 2320
GST = 18% (AV+BCD+ACD+SWS): 18% of (100,000 +10000+13200 + 2320) = USD 22594
Total Amount after paying customs duty and GST: USD 148,114