Exporting bicycles and parts thereof from India involves several steps and compliance with various regulations. Here's an outline of the process, incentives, and a discussion on some relevant case laws along with citations:
1. Procedure for Export of Bicycles and Parts
Exporting bicycles and parts involves the following steps:
a. Registration with DGFT (Directorate General of Foreign Trade)
- IEC (Import Export Code): The exporter must first obtain an IEC from DGFT. It is mandatory for businesses engaging in export and import activities in India.
- RCMC (Registration Cum Membership Certificate): Exporters of bicycles and parts need to obtain RCMC from an Export Promotion Council (EPC) related to their sector, such as the Federation of Indian Export Organisations (FIEO).
b. Classification of Goods
- The exporter needs to classify the goods (bicycles and parts) under the correct HS (Harmonized System) Code.
- For bicycles, the HS Code is generally 8712, and for parts thereof, it may fall under various subcategories depending on the type of component.
c. Obtaining Export Licenses and Documentation
- Depending on the nature of the product and the destination country, certain export licenses/Authorization might be required.
- The exporter must prepare the necessary documents including:
- Export Invoice
- Packing List
- Bill of Lading / Airway Bill
- Certificate of Origin
- Export Declaration Forms (through the ICEGATE system)
d. Customs Clearance
- Exporters must clear goods through customs, ensuring compliance with Indian Customs regulations.
- Goods are inspected and customs duties are calculated (if applicable). The exporter is required to submit the necessary export declaration forms to customs authorities.
e. Shipment
- Once customs clearance is done, the goods are shipped. This can be done via air or sea, depending on the destination and urgency.
f. Post-Export Documentation
- The exporter must ensure that all post-export documentation is completed, such as submitting shipping bills and receiving export proceeds in the designated time frame.
- Exporters are also required to follow the Foreign Exchange Management Act (FEMA) guidelines while repatriating export earnings.
2. Export Incentives for Bicycles and Parts
India offers various export incentives under the Foreign Trade Policy (FTP) to encourage exports, including for bicycles and parts. Some of these include:
a. RODTEP Scheme
- Under RODTEP Scheme, exporters of bicycles and parts may receive duty credit scrips for certain export categories. These scrips can be used to pay customs duties on imported goods.
b. Export Promotion Capital Goods (EPCG) Scheme
- The EPCG Scheme allows exporters to import capital goods at a concessional duty for the purpose of producing goods for export. If the exporter plans to manufacture bicycles or bicycle parts, this incentive can be beneficial.
c. Duty Drawback Scheme
- The Duty Drawback Scheme enables exporters to claim a refund on customs duties paid on raw materials used in the production of export goods. Bicycles and parts are eligible for this scheme, depending on the classification.
d. Interest Equalization Scheme (formerly Interest Subvention Scheme)
- Under the Interest Equalization Scheme, exporters can avail of reduced interest rates on export credit, making it easier to finance export transactions.
e. Special Economic Zones (SEZs) and Export Oriented Units (EOUs)
- If a manufacturer/exporter sets up a unit in an SEZ or EOU, they may be eligible for various tax and duty exemptions on income, customs duties, and excise duties.
India exports bicycles and parts thereof to a wide range of countries across different continents. The main export destinations for Indian bicycles and their parts are primarily in regions such as Europe, Asia, North America, and Africa. Below are some key countries and regions to which India exports bicycles and bicycle parts:
1. European Union (EU)
- Germany: One of the largest importers of bicycles from India. Germany is a major market for both complete bicycles and bicycle parts.
- United Kingdom: The UK imports a significant volume of bicycles and bicycle parts from India.
- France: Another important market in Europe for bicycles and bicycle accessories made in India.
- Italy: Known for a high demand for both premium bicycles and parts.
- Netherlands: The Netherlands has a large bicycle culture and imports bicycles from India, especially for use in urban environments.
2. United States
- The U.S. is one of the largest importers of bicycles and bicycle parts from India. The demand for affordable bicycles, as well as specialized parts like gears, wheels, and frames, is high in the U.S. market.
3. Canada
- Canada imports bicycles and bicycle parts from India, especially with the increasing popularity of cycling in cities for transportation and leisure.
4. Middle Eastern Countries
- United Arab Emirates (UAE): The UAE is a major market for Indian-made bicycles and parts, especially given the popularity of cycling in recreational and sporting activities.
- Saudi Arabia: Another Middle Eastern country with growing interest in cycling, importing bicycles and parts from India.
- Qatar and Kuwait: These countries also import bicycles and bicycle components.
5. Asian Countries
- Bangladesh: A significant importer of Indian bicycles due to the proximity and demand for affordable cycles.
- Sri Lanka: India exports bicycles and parts to Sri Lanka, where cycling is common as an affordable mode of transport.
- Nepal: Given the geographical proximity and high demand for bicycles in urban areas, Nepal imports a variety of bicycles and parts from India.
- China: Though China is a major producer of bicycles, it imports some bicycle components from India, particularly in areas where specialized parts are required.
6. African Countries
- South Africa: South Africa is one of the largest markets in Africa for bicycles and bicycle parts imported from India. The popularity of cycling for commuting and sports contributes to this demand.
- Kenya: Increasing urbanization and demand for affordable transportation options make Kenya a key market for bicycles from India.
- Nigeria: India exports bicycles to Nigeria, with growing interest in bicycles for both recreational and practical purposes.
- Egypt: Egypt is another African country that imports bicycles from India for both local use and export purposes.
7. Latin American Countries
- Brazil: Brazil, with its large population and increasing focus on sustainable transportation, imports bicycles from India.
- Mexico: Mexico is another Latin American country that imports bicycles and bicycle components from India, with a growing market for recreational cycling.
8. Australia
- Australia has a large cycling community, and India exports both complete bicycles and various parts like wheels, tires, and frames to the Australian market.
Key Export Products:
- Complete Bicycles: Traditional bicycles, mountain bikes, road bikes, hybrid bikes, and electric bikes.
- Bicycle Parts: Frames, wheels, tires, pedals, chains, handlebars, brake systems, and gears.
- Bicycle Accessories: Helmets, saddles, bike bags, and racks.
Trends and Opportunities:
- Increasing Demand for Eco-Friendly Transportation: With the growing global emphasis on sustainable transportation, many countries are increasing their demand for bicycles, which presents a long-term growth opportunity for Indian exports.
- Electric Bicycles: The demand for e-bikes is growing, especially in markets like Europe, the U.S., and Australia, presenting additional export opportunities for Indian manufacturers.
- Affordable Cycles for Developing Nations: India is positioned as a major supplier of affordable bicycles to developing nations, particularly in Africa, Asia, and parts of Latin America.
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Department of Commerce
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Export Import Data Bank
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Export :: Commodity-wise 8 digit level
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* ITC HS Code of the Commodity is either dropped or re-allocated and the unit of the commodity may be changed from April 2023.
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Commodity: 8712 BICYCLES AND OTHER CYCLES (INCLUDING DELIVERY TRICYCLES), NOT MOTORISED.
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S.No.
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HS Code
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Commodity
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2023-2024
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%
Share
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2024-2025
(Apr-Oct)
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%
Share
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%
Growth
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1
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87120010
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BICYCLES
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44,312.29
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0.0122
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34,201.15
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0.0162
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2
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87120090
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OTHERS(CYCLES,RICKSHAWS,
DELIVERY CYLES,
CYCLES,TRICYCLES,TOY BICYCLES,ETC)
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710.72
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0.0002
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418.7
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0.0002
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Total
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8712
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BICYCLES AND OTHER CYCLES
(INCLUDING DELIVERY TRICYCLES),
NOT MOTORISED
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45,023.00
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0.0124
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34,619.84
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0.0164
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India's Total Export
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36,18,95,227.05
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21,09,06,952.11
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Dated: 17/1/2025
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DOC-NIC
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Values in Rs. Lacs
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In conclusion, India has a diverse export market for bicycles and bicycle parts, with significant demand from both developed and developing nations.
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