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Hollow Pipes and Tubes (HSN-73041110)
Hollow Pipes and Tubes (HSN-73041110)
Hollow Pipes and Tubes (HSN-73041110)
1. Introduction:
India has emerged as a significant player in the global steel industry, particularly in the export of
construction steel products like hollow pipes and tubes. These products, classified under HSN:
73041110, are extensively used in plumbing and fire-fighting applications. Indian manufacturers have
capitalized on the country's robust steel production capabilities, leveraging advanced manufacturing
processes and a strategic geographical location to enhance their export potential. The global market's
demand for high-quality, cost-effective steel solutions positions India as a competitive supplier.
1.4.2 Opportunities:
Infrastructure Development Globally:
Growing global infrastructure projects present significant opportunities for steel exports.
Technological Advancements:
Leveraging advanced manufacturing technologies to produce high-quality, customized steel
products.
Sustainability Trends:
Increasing demand for environmentally sustainable construction materials, which Indian
manufacturers are beginning to adopt.
1.5 Historical perspective:
India's steel industry has grown substantially, making significant strides in both domestic and
international markets. Hollow pipes and tubes, classified under HSN 73041110, play a vital role in
construction, infrastructure, and industrial applications. Understanding the historical evolution of their
export potential provides insight into current trends and future opportunities.
2.4 Challenges:
Global Competition: Strong competition from established steel producers like China, Japan,
and South Korea. Need to continuously improve efficiency and reduce costs to remain
competitive.
Trade Barriers: Tariffs, anti-dumping duties, and other trade barriers in various countries can
impact export volumes. Indian exporters must navigate complex international trade regulations
and policies.
Fluctuating Raw Material Prices: Volatility in the prices of raw materials like iron ore and
coal can affect production costs and pricing strategies. Maintaining stable supply chains is
critical for consistent production.
2.5 Opportunities:
Emerging Markets: Expanding presence in emerging markets where infrastructure needs are
growing rapidly. Tailoring products to meet specific local requirements can enhance
competitiveness.
Value-Added Products: Focus on high-value, precision-engineered products can open new
market segments. Investing in R&D to innovate and improve product offerings.
Strategic Partnerships: Forming strategic partnerships and joint ventures with foreign
companies can facilitate market entry and expansion. Collaborative efforts can also help in
technology transfer and market intelligence sharing.
3. Figures and Import-Export Market Scenario:
India's export potential for construction steel, specifically hollow pipes and tubes (HSN: 73041110)
used in plumbing and fire-fighting applications, is robust, with significant growth in recent years. In the
fiscal year 2022-23, India exported approximately 2 million tons of these products, valued at around
USD 1.4 billion, primarily to key markets such as the United States, the European Union, the Middle
East, and Southeast Asia. While imports stood at about 0.5 million tons valued at USD 250 million,
mainly from Japan, South Korea, and Germany, India's positive trade balance underscores its
competitive edge in this sector. Government support through export incentives like RoDTEP, adherence
to international quality standards, and advancements in manufacturing technologies have bolstered
India’s position in the global market. This growth aligns with the increasing global demand for reliable
and high-quality plumbing and fire-fighting infrastructure, driven by urbanization and extensive
construction activities worldwide.
Enhanced Competitiveness
Government incentives and support reduce production costs and improve the quality of steel
products, making them more competitive in international markets.
Market Access
Trade agreements and tariff reductions provide Indian exporters with better access to key
markets, facilitating higher export volumes.
Sustainability
Policies promoting sustainable practices and environmental compliance help Indian steel
products gain acceptance in environmentally conscious markets.
5. India’s Foreign Trade Policy:
India's Foreign Trade Policy for Hollow Pipes and Tubes (HSN: 73041110) is governed by several
regulations and initiatives aimed at promoting exports and managing imports. The 2023 Foreign Trade
Policy (FTP) has introduced dynamic measures to support exporters and enhance India's trade
capabilities.
Promotion of Exports: The FTP 2023 aims to increase India's exports to $2 trillion by 2030.
It emphasizes export promotion through collaboration between exporters, states, districts, and
Indian missions. The policy also seeks to streamline processes and reduce transaction costs to
make exporting easier.
Advance Authorization Scheme: This scheme allows duty-free import of raw materials for
the production of export items, providing flexibility to domestic tariff area (DTA) units to cater
to both domestic and export markets. This is intended to help manufacturers of hollow pipes
and tubes reduce costs and remain competitive globally.
Merchanting Trade: The policy introduces provisions for merchanting trade, enabling Indian
intermediaries to facilitate trade between foreign countries without the goods touching Indian
ports, subject to RBI guidelines. This can help Indian businesses expand their global footprint.
Amnesty Scheme: A special one-time amnesty scheme has been introduced to help exporters
who have defaulted on export obligations under various authorizations. This provides relief by
capping interest on exempted duties and allowing easier compliance
2. GST: The GST rate for products under HSN 73041110, which includes seamless hollow pipes
and tubes made of iron or steel, is also applicable. Businesses must ensure compliance with
GST regulations when importing or exporting these products.
2. Incentives and Remission: Exporters can benefit from various incentive schemes that provide
remission of duties and taxes on exported products, helping to lower the overall cost of
exporting.
India's comprehensive approach to foreign trade policy aims to bolster the export sector, reduce trade
barriers, and facilitate smoother operations for businesses involved in international trade of hollow pipes
and tubes. For detailed and specific information, businesses are advised to consult the Directorate
General of Foreign Trade (DGFT) and other official resources.
5.3 RoDTEP schemes applicable for Hollow Pipes and Tubes (HSN: 73041110):
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for Hollow Pipes and
Tubes (HSN: 73041110) in India is designed to refund embedded central, state, and local duties and
taxes to exporters, thereby enhancing the competitiveness of Indian products in the global market.
For HSN code 73041110, the applicable RoDTEP rates are outlined in the official notifications from
the Directorate General of Foreign Trade (DGFT). These rates are periodically reviewed and updated
to ensure they align with current economic conditions and budgetary considerations. As of the latest
updates, the scheme's benefits are extended to various categories of exporters, including those operating
under Advance Authorization (AA), Export Oriented Units (EOUs), and units in Special Economic
Zones (SEZs).
1. Rebate on Duties and Taxes: Exporters receive a rebate calculated as a percentage of the Free
on Board (FOB) value of the exported goods. This rebate is intended to cover the non-rebatable
central, state, and local duties and taxes.
2. Eligibility: The scheme is applicable to eligible exports under the notified HSN codes,
including 73041110. The eligible products and specific rebate rates are listed in Appendix 4R
and 4RE of the Foreign Trade Policy.
3. Period of Applicability: The RoDTEP scheme has been extended till September 30, 2024, for
exports made by AA holders, EOUs, and SEZ units. This extension allows exporters from these
sectors to benefit from the scheme until the mentioned date.
4. Implementation and IT Integration: For SEZ units, the RoDTEP implementation is subject
to the integration of SEZ units with the Customs Automated System (ICEGATE), expected to
be operational by April 1, 2024
5.4 What is RoDTEP Incentive for Hollow Pipes and Tubes (HSN: 73041110):
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, launched by the Indian
government, aims to enhance the global competitiveness of Indian exports by reimbursing embedded
duties and taxes that were previously not refunded under other schemes. For Hollow Pipes and Tubes
under the HSN Code 73041110, the RoDTEP scheme provides specific incentives.
As of the latest updates, the applicable RoDTEP rate for these products is outlined in the scheme's
detailed documentation. Generally, the rates under RoDTEP vary based on the product and are designed
to cover the unrefunded taxes and duties. For HSN Code 73041110, the rates can be found in the
appendices of the scheme, specifically in Appendix 4R. These rates are periodically reviewed and
adjusted by the Directorate General of Foreign Trade (DGFT)
For precise and up-to-date rates applicable to Hollow Pipes and Tubes, it is advisable to refer to the
latest notifications and appendices released by the DGFT, available on their official website. This
ensures that exporters can accurately calculate the remission benefits they are entitled to under the
RoDTEP scheme.
5.6 EEPC India plays a significant role in assisting exporters through various initiatives:
1. Market Intelligence: It offers detailed reports and insights into global market trends,
helping exporters identify potential markets and understand trade dynamics.
2. Trade Fairs and Exhibitions: EEPC organizes and supports participation in
international trade fairs and exhibitions, providing a platform for exporters to showcase
their products and connect with potential buyers.
3. Standards and Compliance: The council helps exporters understand and comply with
international standards and certifications, which is crucial for entering and competing
in global markets.
4. Advocacy and Representation: EEPC represents the interests of Indian engineering
exporters to the government and other regulatory bodies, advocating for favorable
policies and addressing industry concerns.
The Engineering Export Promotion Council of India (EEPC India) plays a vital role in
promoting the export of engineering goods, including hollow pipes and tubes classified under
HSN 73041110. EEPC India provides a variety of support mechanisms and initiatives to
enhance the export potential of these products.
5.7 EEPC India's Support and Services for Hollow Pipes and Tubes:
INDEE Exhibitions: These are flagship events where Indian exporters can exhibit their
products and engage with international buyers. Upcoming events include exhibitions in
Jordan and Germany.
Webinars and Seminars: EEPC India regularly conducts webinars and seminars to
educate exporters on various aspects of international trade, including export
documentation, compliance with international standards, and navigating trade barriers.
5.9 Impact on Hollow Pipes and Tubes Export
The support provided by EEPC India has a significant impact on the export of hollow pipes and tubes.
By participating in trade fairs and leveraging EEPC India's market intelligence, exporters can identify
new markets and increase their international presence. Additionally, policy advocacy and adherence to
quality standards ensure that Indian hollow pipes and tubes remain competitive globally.
5.10 How does foreign trade policy help the manufacturers in exporting hollow pipes and tubes
(HSN: 73041110)
India's Foreign Trade Policy (FTP) provides a comprehensive framework to help manufacturers in
exporting hollow pipes and tubes (HSN: 73041110). Here are the key ways in which the FTP supports
these manufacturers:
Duty Exemption and Remission Schemes: These include the Advance Authorization Scheme,
which allows duty-free import of inputs required for manufacturing export goods, thus reducing
production costs for manufacturers.
Export Promotion Capital Goods (EPCG) Scheme: This scheme permits the import of
capital goods at zero customs duty for pre-production, production, and post-production,
improving manufacturing capabilities and reducing costs.
5.10.2 Market Access Initiative (MAI) and Market Development Assistance (MDA)
The FTP aims to simplify the regulatory framework and reduce transaction costs by:
The policy provides various financial incentives and assistance programs such as:
Interest Equalization Scheme: This scheme offers a subsidy on the interest rate for pre and
post-shipment credit for certain sectors, including engineering goods, to reduce the cost of
financing exports.
Amnesty Scheme for Defaulting Exporters: A one-time amnesty scheme to settle pending
cases and reduce penalties, allowing manufacturers to clear backlogs and focus on future
exports.
EEPC India and other export promotion councils work closely with the government to:
To facilitate smoother logistics and supply chain management, the FTP includes:
Development of export infrastructure like ports, export hubs, and specialized industrial zones.
Improvements in transportation networks and facilities to reduce lead times and improve
efficiency in exporting goods.
6. Lucrative countries for trade of Hollow Pipes and Tubes:
When considering the lucrative trade of hollow pipes and tubes (HSN: 73041110) for countries like
Italy, Saudi Arabia, Belgium, the USA, and the UAE, several factors need to be taken into account
including market demand, industry needs, trade policies, and economic stability. Here's an overview of
the trade landscape for each of these countries:
6.1 Italy:
Market Overview:
o Italy is known for its robust industrial sector, particularly in manufacturing and
construction.
o Demand for high-quality hollow pipes and tubes is driven by the automotive,
aerospace, and construction industries.
Trade Opportunities:
o Italy imports a significant amount of industrial components, including pipes and tubes,
to support its advanced manufacturing sectors.
o Italian companies often look for high-quality materials from reliable international
suppliers.
Trade Policies:
o Italy, being part of the European Union, follows EU trade regulations, which can
facilitate easier access to other EU markets.
Market Overview:
o Saudi Arabia has a substantial demand for hollow pipes and tubes, primarily driven by
its oil and gas sector.
o The construction boom associated with Vision 2030 also increases the need for these
materials.
Trade Opportunities:
o The Kingdom is investing heavily in infrastructure projects, creating a steady demand
for construction materials including pipes and tubes.
o Opportunities for exporters to cater to large-scale projects like Neom City and other
mega infrastructure projects.
Trade Policies:
o Saudi Arabia's trade policies are focused on diversifying its economy, leading to
favourable conditions for international trade in industrial goods.
6.3 Belgium
Market Overview:
o Belgium has a well-developed industrial base and is a significant hub for logistics and
trade in Europe.
o High demand for specialized and high-quality industrial products.
Trade Opportunities:
o As a major gateway to Europe, Belgium's ports and logistics infrastructure make it an
ideal entry point for hollow pipes and tubes.
o Demand is driven by the country's construction, automotive, and manufacturing
industries.
Trade Policies:
o Being part of the EU, Belgium follows EU trade regulations, providing access to a large
and integrated market.
6.4 USA
Market Overview:
o The USA has one of the largest markets for industrial goods, with significant demand
from sectors like oil and gas, automotive, and construction.
o The country's ongoing infrastructure developments and energy projects drive demand
for pipes and tubes.
Trade Opportunities:
o High demand for durable, corrosion-resistant hollow pipes and tubes, particularly in
the energy and construction sectors.
o Opportunities to cater to diverse industries with stringent quality standards.
Trade Policies:
o The USA has specific trade agreements and regulations, with tariffs and duties that can
affect the trade of steel products.
6.5 UAE
Market Overview:
o The UAE is a rapidly growing market with extensive infrastructure projects,
particularly in Dubai and Abu Dhabi.
o The oil and gas sector are a significant driver of demand for hollow pipes and tubes.
Trade Opportunities:
o Major infrastructure and real estate projects create a substantial demand for
construction materials.
o The UAE serves as a trading hub for the Middle East, offering re-export opportunities.
Trade Policies:
o The UAE has a favourable trade environment with minimal tariffs and a strategic
location that facilitates easy access to other markets in the Middle East and Africa.
7. India’s new foreign trade policy 2024 for Hollow Pipes and Tubes:
India’s Foreign Trade Policy (FTP) 2024 aims to boost the export of engineering goods, including
hollow pipes and tubes (HSN: 73041110). These products, crucial in sectors such as oil and gas,
construction, and manufacturing, are significant for India’s export portfolio. The new policy introduces
several measures designed to enhance competitiveness, ensure compliance with international standards,
and streamline export processes.
o Advance Authorization Scheme: Allows duty-free import of inputs required for the
production of export goods. This reduces the cost burden on manufacturers and
enhances their competitiveness in international markets.
o Duty Drawback Scheme: Provides for the refund of duties paid on imported inputs
used in the manufacture of export goods.
o The FTP identifies key markets for hollow pipes and tubes, including the United States,
Germany, China, Canada, Mexico, the United Kingdom, and the United Arab Emirates.
These markets are chosen based on their industrial demand and import volume.
o Leveraging Free Trade Agreements (FTAs) and regional trade agreements to gain
preferential access to major markets. This includes reduced tariffs and easier market
access under agreements with ASEAN, SAFTA, and others.
o Ensuring compliance with diverse international standards can be challenging. The FTP
addresses this by providing support for obtaining certifications and conducting regular
training and workshops for exporters.
2. Logistical Issues:
o Exporting bulky and heavy products like hollow pipes and tubes involves significant
logistical challenges. The policy focuses on improving export infrastructure, including
ports and transportation networks, to facilitate smoother logistics.
3. Competitive Pricing:
o Maintaining competitive pricing while ensuring quality is crucial. The policy helps by
reducing input costs through duty exemptions and providing financial incentives to
offset other costs.
Market Research and Intelligence: EEPC conducts extensive market research and provides
intelligence reports that help exporters identify new markets and understand market trends,
demand, and competition. This information is crucial for exporters of hollow pipes and tubes
to tailor their strategies and offerings to specific market needs.
Trade Fairs and Exhibitions: EEPC organizes participation in international trade fairs,
exhibitions, and buyer-seller meets. These events provide a platform for exporters to showcase
their products, network with potential buyers, and establish business relationships.
Advocacy for Favourable Policies: EEPC represents the interests of exporters to the
government, advocating for favourable trade policies, tariff reductions, and resolving issues
related to non-tariff barriers. This ensures a more conducive export environment for hollow
pipes and tubes.
Engagement with International Bodies: EEPC engages with international trade bodies and
participates in negotiations to secure better market access and reduce trade barriers for Indian
exporters.
Subsidies and Grants: EEPC helps exporters avail various subsidies and grants provided by
the government under schemes like the Remission of Duties and Taxes on Exported Products
(RoDTEP). These financial incentives reduce the cost burden on exporters and enhance their
profitability.
Interest Equalization Scheme: Through this scheme, EEPC ensures that exporters receive an
interest subsidy on pre- and post-shipment export credit, reducing the cost of financing
exports and making Indian products more competitive globally.
Facilitation of Export Infrastructure: EEPC works with the government to improve export
infrastructure, such as ports and transportation networks. Enhanced logistics infrastructure
ensures timely and efficient delivery of hollow pipes and tubes to international markets.
Export Documentation and Compliance: The council provides guidance on export
documentation, customs procedures, and compliance with regulatory requirements. This
support helps exporters navigate the complexities of international trade and avoid delays.
Industry Networking: EEPC provides a platform for exporters to connect with industry
peers, share best practices, and collaborate on common challenges. This networking fosters a
community of exporters that can collectively address industry issues and opportunities.
Collaboration with Trade Bodies: The council collaborates with other trade bodies and
export promotion councils to align strategies and initiatives, ensuring a unified approach to
boosting exports from India.
8. Engineering Export Promotion Council (EEPC) Various Issues Raised and
Addressed Pertaining to Export of Hollow Pipes and Tubes:
The Engineering Export Promotion Council (EEPC) of India plays a crucial role in addressing various
issues related to the export of Hollow Pipes and Tubes (HSN: 73041110). Here is a detailed account of
the issues raised and addressed by EEPC:
Workshops and Training: EEPC organizes regular workshops and training sessions to
educate exporters on international standards such as ISO, ASTM, and others
Support for Certifications: The council assists exporters in obtaining necessary
certifications by providing information and connecting them with certification bodies. This
support includes financial assistance for certification costs (GlobalSCF).
Limited Market Access: Exporters often struggle to enter new markets due to trade barriers,
lack of information, and stiff competition.
Dependence on Traditional Markets: Heavy reliance on traditional markets can be risky,
especially when those markets experience economic downturns.
Market Research and Intelligence: EEPC provides detailed market research reports and
intelligence, helping exporters identify and understand new markets. This includes data on
market demand, competition, and regulatory requirements.
Trade Fairs and Exhibitions: The council organizes and sponsors participation in
international trade fairs, exhibitions, and buyer-seller meets. These events provide platforms
for exporters to showcase their products and build business networks.
Leveraging Trade Agreements: EEPC works with the government to leverage existing Free
Trade Agreements (FTAs) and negotiate new ones to reduce tariffs and trade barriers for
Indian exporters.
High Logistics Costs: Exporting heavy and bulky products like hollow pipes and tubes incurs
high logistics costs, affecting competitiveness.
Inadequate Infrastructure: Poor infrastructure at ports and transportation networks can lead
to delays and increased costs.
8.3.2 EEPC's Actions:
High Cost of Financing: Exporters often face high financing costs, which can erode profit
margins.
Access to Credit: Small and medium-sized enterprises (SMEs) particularly struggle with
accessing affordable credit for export activities.
Interest Equalization Scheme: EEPC ensures exporters benefit from the Interest
Equalization Scheme, which provides interest subsidies on pre- and post-shipment export
credit. This helps reduce the cost of financing exports.
Export Credit Insurance: The council collaborates with the Export Credit Guarantee
Corporation (ECGC) to offer credit insurance schemes that protect exporters against payment
risks, ensuring financial stability.
Outdated Technology: Many exporters use outdated technology, which affects the quality
and cost-efficiency of their products.
Lack of R&D: Insufficient investment in research and development (R&D) hampers
innovation and product improvement.
8.6.2 EEPC's Actions:
Role and Services: EEPC India is the premier trade and investment promotion organization for
the engineering sector, including hollow steel pipes and tubes. It provides market intelligence,
organizes international trade fairs, and offers financial assistance under various government
schemes. EEPC also advocates for policy changes to facilitate easier market access and reduced
trade barriers.
Initiatives: EEPC conducts regular training programs and workshops to help exporters meet
international quality standards. It also collaborates with international trade bodies to secure
better market access for Indian exporters.
Role and Services: FICCI is one of the largest and oldest business organizations in India. It
provides a platform for networking, policy advocacy, and business development. FICCI's
initiatives include organizing trade missions and facilitating B2B meetings to help exporters
find new markets.
Support for Exporters: FICCI helps exporters of hollow steel pipes and tubes by providing
insights into market trends, regulatory updates, and helping with compliance issues. It also
plays a significant role in lobbying for favourable trade policies.
Role and Services: CII works to create a sustainable and competitive industry landscape. It
offers a variety of services including policy advocacy, business networking, and knowledge
sharing. CII helps exporters by providing detailed market research and organizing trade shows
and delegations.
Export Promotion: CII supports exporters by offering guidance on quality standards, helping
with certifications, and facilitating interactions with international buyers. It also advocates for
infrastructure improvements to ease export logistics.
Role and Services: IPMA specifically represents the interests of pipe manufacturers in India.
It provides a platform for discussing industry challenges, sharing best practices, and collectively
addressing issues related to production and export.
Support for Exporters: IPMA offers support in areas such as compliance with international
standards, technological advancements, and addressing policy-related hurdles. It also
collaborates with government bodies to promote exports and improve market access.
Role and Services: While primarily a producer, SAIL plays a significant role in supporting the
industry through its export division. It offers high-quality steel products and collaborates with
industry associations to ensure the availability of materials that meet international standards.
Initiatives: SAIL provides market insights, participates in international trade shows, and
supports initiatives that promote Indian steel products globally.
10. Export of Hollow Steel Pipes and Tubes Commodity-wise all countries:
Department of Commerce
Export Import Data Bank
Export: Commodity-wise all countries
Dated: 16/6/2024
₹3,000.00
₹2,500.00
₹2,000.00
₹1,500.00
₹1,000.00
₹500.00
₹-
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
10.2 Pie chart for export value by Country:
Belgium
16% 2019-2020
6% 2020-2021
41% 0%
2021-2022
2022-2023
37% 2023-2024
Italy
19% 2019-2020
31%
2020-2021
10% 2021-2022
6% 2022-2023
34% 2023-2024
Saudi Arab
2019-2020
29% 27%
2020-2021
2021-2022
9% 2022-2023
22% 13% 2023-2024
UAE
16% 2019-2020
33% 2020-2021
10%
2021-2022
9% 2022-2023
32% 2023-2024
USA
21% 2019-2020
40% 2020-2021
6% 2021-2022
2022-2023
20%
13% 2023-2024
500.00
400.00
300.00
200.00
100.00
0.00
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
600.00
500.00
400.00
300.00
200.00
100.00
0.00
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
11. FTA with the lucrative countries:
Free Trade Agreements (FTAs) can significantly boost exports by reducing or eliminating tariffs and
other trade barriers. For the export of hollow tubes and pipes (HSN: 73041110), examining existing
FTAs with countries like Belgium, Italy, Saudi Arabia, UAE, and the USA can help identify the most
advantageous trade partners. Here is an overview of relevant FTAs and their potential benefits for these
exports:
Belgium, as a member of the European Union (EU), is part of several FTAs that the EU has
negotiated with other countries and regions.
Key FTAs:
Significance: While there is no direct FTA between India and Belgium, the Comprehensive
Trade and Economic Agreement (CETA) between the EU and Canada could also provide
indirect benefits through supply chains involving Canada.
Key FTAs:
Same as Belgium, including the EU-Mercosur Agreement, which aims to improve trade with
South American countries.
EU-Singapore Free Trade Agreement: Opens up opportunities in the Asian market.
Significance: Italian companies involved in manufacturing may benefit from these agreements,
potentially increasing demand for components like hollow tubes and pipes.
Saudi Arabia is part of the Gulf Cooperation Council (GCC), which has several trade
agreements.
Key FTAs:
GCC-Singapore Free Trade Agreement: Facilitates trade in goods, services, and investment
between the GCC and Singapore.
GCC-EFTA Free Trade Agreement: Covers trade with the European Free Trade Association
countries, including Switzerland and Norway.
Significance: These agreements can enhance market access for Saudi manufacturers, which
may indirectly benefit exporters of hollow tubes and pipes.
11.4 United Arab Emirates (UAE)
The UAE is also a member of the GCC and benefits from similar trade agreements.
Key FTAs:
Significance: The UAE-India CEPA is particularly beneficial for Indian exporters of hollow
tubes and pipes, providing a competitive edge in the UAE market.
The USA has numerous FTAs with various countries and regions but does not have an FTA
with India.
Key FTAs:
Significance: While there is no direct FTA between the USA and India, Indian exporters can
still benefit from the generalized system of preferences (GSP), which provides reduced tariffs
on certain goods.
References
Global Exposure: Trade fairs and exhibitions provide exporters with the opportunity to
showcase their products to a global audience. This exposure helps in identifying potential
buyers and understanding market demand.
Networking Opportunities: These events offer a platform to network with industry peers,
suppliers, and customers. They help in building business relationships and exploring new
market opportunities.
Examples: Major international trade fairs such as the Tube Düsseldorf in Germany, the
International Tube and Pipe Trade Fair in China, and the Middle East Steel Conference in Dubai
are critical for networking.
Direct Interaction: B2B meetings allow exporters to have direct interactions with potential
buyers, facilitating better understanding of buyer requirements and preferences.
Customized Solutions: These meetings help exporters offer customized solutions and
negotiate terms directly, leading to more tailored and effective business agreements.
Organizers: Organizations like EEPC India frequently organize buyer-seller meets in various
countries, which are pivotal for establishing direct business contacts.
Market Exploration: Trade missions enable exporters to explore new markets by visiting
countries, meeting local businesses, and understanding market conditions and regulations.
Government Support: These missions often have the backing of government bodies,
providing credibility and facilitating smoother negotiations and partnerships.
Examples: Indian trade missions to countries like the United States, Germany, and the UAE
often include meetings with industry associations, chambers of commerce, and potential buyers.
Global Reach: Online platforms like Alibaba, Global Sources, and IndiaMART offer global
reach and visibility for exporters of hollow pipes and tubes.
Digital Networking: These platforms enable exporters to connect with international buyers,
participate in virtual trade fairs, and conduct online B2B meetings.
Enhanced Marketing: Digital marketing strategies including SEO, social media marketing,
and online advertising help in reaching a wider audience and generating more leads.
Government Linkages: Export Promotion Councils like EEPC India provide linkages with
government initiatives, subsidies, and incentives aimed at promoting exports.
Support Services: These councils offer a range of support services including market research,
certification assistance, and logistical support, all of which are crucial for international
networking.
Training and Workshops: EEPC organizes training and workshops on export procedures,
compliance, and market trends, helping exporters stay informed and competitive.
Local Connections: Engaging with local chambers of commerce in target countries helps
exporters navigate local business environments and regulatory frameworks.
Advocacy and Networking: Chambers often advocate on behalf of exporters, facilitating
introductions to key local stakeholders and organizing networking events.
Examples: The Federation of Indian Chambers of Commerce and Industry (FICCI) and the
Confederation of Indian Industry (CII) frequently collaborate with international chambers to
support exporters.
13. Landed cost for Export of Hollow Pipes and Tubes (HSN: 73041110):
Calculating the landed cost for exporting hollow tubes and pipes (HSN: 73041110) to different
countries involves considering several factors such as the cost of goods, shipping costs,
insurance, customs duties, and other relevant fees. Here is a step-by-step approach to determine
the landed cost:
1. Cost of Goods (FOB Price): The cost of the hollow tubes and pipes at the point of origin (Free
On-Board price).
2. Shipping Costs: The cost to transport the goods to the destination country.
3. Insurance: The cost to insure the goods during transit.
4. Customs Duties and Taxes: Import duties, value-added tax (VAT), and other applicable fees
in the destination country.
5. Other Fees: Handling fees, port charges, etc.
13.2 Assumptions
The current FOB (Free on Board) price of hollow tubes and pipes (HSN: 73041110) in India
varies depending on specifications such as material and size. For stainless steel tubes and pipes,
the price generally ranges from ₹120,000 to ₹150,000 per metric ton. These prices are
indicative and can fluctuate based on market conditions, supplier terms, and specific
requirements of the export order.
13.3 Calculation
Let's use these assumptions to calculate the landed cost for each country.
Belgium:
Saudi Arabia:
UAE:
USA:
Belgium: ₹158,752
Italy: ₹160,064
Saudi Arabia: ₹158,424
UAE: ₹144,648
USA: ₹142,687.87
14. Determining Duty Drawback Allowance (DDA):
The Duty Drawback Allowance (DDA) value for exporting goods like hollow tubes and pipes
(HSN: 73041110) varies by country and is influenced by factors such as product specifications,
market conditions, and specific trade agreements in place. Here’s an overview of how to
determine the DDA for exports to Belgium, Italy, Saudi Arabia, UAE, and the USA:
The DDA is a refund of customs duties and taxes paid on imported materials that are used in
the production of exported goods. The specifics can vary by country and trade agreements. To
calculate the DDA accurately, consider the following:
Applicable Agreements: Part of the Gulf Cooperation Council (GCC), with specific
agreements affecting trade.
Drawback Rates: Approximately 2-5% of the FOB value depending on the product specifics.
References:
o Saudi Customs
o India’s Ministry of Commerce
Applicable Agreements: As a GCC member, the UAE has specific trade policies in place.
Drawback Rates: Around 2-5% of the FOB value for eligible products.
References:
o UAE Federal Customs Authority
o India’s Ministry of Commerce
1. Determine FOB Value: The sale price of the goods including all costs up to the point of loading
onto the transport vessel.
2. Identify Eligible Drawback Rates: Consult with the local customs or trade authorities to get
the specific drawback rates for hollow tubes and pipes.
3. Apply the Drawback Rate: Calculate the DDA by applying the identified rate to the FOB
value of the exported goods.
Assuming an FOB value of ₹100,000 per ton and an average drawback rate of 3%, the DDA
would be calculated as follows:
DDA=100,000 x 0.03=₹3,000
Source:
To export hollow tubes and pipes (HSN: 73041110) from India to Belgium, Italy, Saudi Arabia,
UAE, and the USA, you can source from a variety of reputable manufacturers and suppliers.
Below are some well-known companies and platforms in India that specialize in producing and
exporting these products:
15.6 IndiaMART
Website: IndiaMART
Overview: Another major B2B marketplace in India.
Features: Extensive listings of suppliers and exporters for hollow tubes and pipes, including
detailed product descriptions and contact information.
16. Main buyers for Hollow Pipes and Tubes (HSN: 73041110) in the lucrative
countries:
Identifying the main buyers for hollow pipes and tubes (HSN: 73041110) in various countries
involves understanding the import trends and industries that commonly use such products.
Here’s a general overview based on typical importers:
16.1 Belgium:
Belgium imports a variety of steel products, including hollow pipes and tubes, primarily for
industries such as construction, manufacturing, and infrastructure development. The main
buyers could include:
Construction companies
Manufacturing industries (automotive, machinery)
Infrastructure development projects (public and private)
16.2 Italy:
Italy is known for its strong manufacturing sector, particularly in automotive, machinery, and
construction. Potential buyers of hollow pipes and tubes could be:
Automotive manufacturers
Machinery manufacturers
Construction companies and contractors
Both Saudi Arabia and the UAE are major markets for construction and infrastructure due to
rapid urbanization and development. Potential buyers might include:
16.4 USA:
The United States has a diverse range of industries that use hollow pipes and tubes, from
construction to manufacturing and energy. Main buyers could be: