International Trade Operations & Documentation

Prof. Ram Singh

Assignment Submitted by - Simran Sahu
Roll no.- 41C
(MBA-IB 2023-25)

Class assignment submission for

International Trade Operations & Documentation
HS CODE Allotted- '85094009’

End user of product- Food grinders and mixers; Fruit or vegetable juice extractors are commonly used
in domestic kitchen, commercial food processing industries, Hotels and restaurants.

Governing Indian Specification/Standard: 1. IS 4250 : 1980 (Reaffirmed Year : 2014 ) Domestic Electric
Food-Mixers (Liquidizes and Grinders) 2. Table Top Wet Grinder - Conforming to safety Provisions of IS
302 Part-I 1979 3. Wet Grinder - Motor – IS 996 4.

Governing International Standards: IEC 60335-2-14:2016 Household and similar electrical appliances -
Safety - Part 2-14: Particular requirements for kitchen machines.

Ans 1)
The import policy for HS code '85094009', which covers domestic food grinders, mixers, and fruit or
vegetable juice extractors, is 'FREE’. It implies that there are no restrictions or tariffs on importing
these products.

HS code 8509 Electro-mechanical domestic appliances, with self-contained electric motor.

HS code 85094 Juice extractors:

HS code 85094009 Food grinders and mixers; Fruit or vegetable juice extractors

HS code 85094010 Food grinders and mixers; Fruit or vegetable juice extractors

HS code 85094090 Food grinders and mixers; Fruit or vegetable juice extractors

Ans 2)
Rationale for a 'FREE' Import Policy:

• Consumer Choice: A 'FREE' import policy may have been implemented to provide consumers
with a wide variety of choices at competitive prices. This aligns with a consumer-centric
approach, allowing consumers to access affordable and diverse options.
 • Market Efficiency: Such a policy could promote market efficiency, as it encourages competition
among domestic and foreign manufacturers. This can result in improved product quality,
innovation, and price competitiveness.

• Short-Term Supply: 'FREE' import policies ensure that there is a consistent and readily
available supply of these essential domestic appliances. This can be crucial for meeting short-
term demands and minimizing disruptions in the market.

• Global Market Dynamics: The global market for domestic food grinders, mixers, and juice
extractors may be such that India's domestic production alone cannot meet the demand,
making imports essential to satisfy consumer preferences.

PRODUCTION DATA:-
Number of industries registered as MSMEs available in the manufacturing of the product Based on
information available from Udyam Registration portal, the list of MSMEs engaged in the manufacturing
of products falling under NIC Code 27501 is given below.

A total of 3388 MSMEs spread over the country which are involved in the manufacture of domestic
electric appliances and it’s components. Maharashtra stands at number one place with 832 registered
MSMEs, followed by Tamil Nadu with 514 units and Delhi with 321 units.

Existing clusters of the product:-

✓ Wet Grinder Industrial Cluster Coimbatore Tamil Nadu Coimbatore has emerged as the natural wet
grinder industry cluster due to the availability of the natural stones suitable for wet grinders
nearby.
✓ Coimbatore is one of the leading industrial cities in India. Many engineering and fabrication units
functioning in and around Coimbatore had started manufacturing wet grinders. Foundries,
mechanical fabrication units and electroplating units in and around Coimbatore supported this
cluster for its development.

Data on imports for the last three years:-

Globally, demand for the domestic electric appliance is being driven by its increasing usage owing to
its economic cost and low maintenance. India is importing mostly the components for manufacturing
the domestic electrical appliance from various parts of the word especially from China.
It can be observed from the yearly trend of imports that, from 2017-18 to 2018-19 the import of Food
grinders and mixers; Fruit or vegetable juice extractors is in increasing trend. During 2019-20 import
of Food grinders and mixers; Fruit or vegetable juice extractors is showing a negative growth.

Food grinders and mixers; Fruit or vegetable juice extractors are majorly(98%) imported from China.

(Source-DGFT)

(Source- ITC trade maps)

Ans 3)
Possibility to create cluster & probable areas or the district where the product can be manufactured.

The possibility to create clusters is a strategic decision wherein the influencing

and deciding factors can be the following:

● Concentration/ Proximity of source of raw material suppliers.

● Concentration/ proximity to end-users or market

● Existing manufacturers

● Proximity to ancillary units involved in the manufacturing of parts and components.

Based on these factors and the information available, it is proposed that the possibility of establishing
clusters for Food Mixer. These Food mixer clusters can be created at Regional Capital / Labour intensive
area of Delhi, Maharastra and Tamil Nadu states.

Scope for number of units which can be established in future:-

The production of Food grinders and mixers; Fruit or vegetable juice extractors can be promoted for
export. The import of components for Food grinders and mixers; Fruit or vegetable juice extractors can
be reduced by encouraging such manufacturing activities under Atmanirbhar Bharat Abhiyan by giving
them special incentive. Around 200 units every state and be setup considering the increasing demand
of domestic and export market in the next 5 years.

Ways to Boost Domestic Production:

Incentives for Manufacturers: Provide financial incentives such as tax breaks or subsidies to
domestic manufacturers to encourage them to increase production and invest in modernizing
their facilities.

R&D and Innovation: Encourage research and development within the industry to foster
innovation. This can lead to the development of advanced, competitive products.

Quality Assurance and Standards: Strengthen quality standards and regulations to ensure that
both imported and domestically manufactured products meet specific quality criteria. This not
only protects consumers but also promotes the reputation of domestic products.
 Skill Development: Invest in skill development and training programs for the workforce in the
domestic appliance manufacturing sector. Skilled labor can improve production efficiency and
product quality.

Technology Transfer: Encourage collaboration between domestic manufacturers and foreign

companies for technology transfer. This can help domestic companies adopt advanced
manufacturing techniques and technology.

Market Research: Conduct market research to understand consumer preferences and

emerging trends. This data can guide the development of new products, catering to changing
consumer demands.

Export Promotion: Encourage domestic manufacturers to export their products, helping them
expand their market and utilize economies of scale to reduce production costs.

Industry Clusters: Promote the formation of industry clusters or zones where manufacturers
can benefit from shared infrastructure, specialized suppliers, and a conducive business
environment.

Conclusion-'FREE' import policy aligns with the principles of market competition and consumer choice.
However, it is essential to strike a balance between promoting imports for consumer benefit and
fostering domestic production for long-term economic growth. Policymakers should continually assess
the market dynamics to ensure that domestic manufacturers have the support and incentives they
need to thrive.