INCREASING EXPORT OPPORTUNITIES FOR INDIAN MMF TEXTILES IN THE RUSSIAN MARKET
Russia is a growing market for Man-made fibre textiles item with about 144 million populations. It has undergone significant changes since the reformation of the Soviet Union, moving from a globally-isolated, centrally-planned economy towards a more market-based and globally-integrated one. India and Russia have been strategic partners for decades.
MARKET POTENTIAL
Russia imported nearly US$ 14 billion of textiles & clothing and US$ 5 billion of textiles product from the world during 2013. However, Russia‘s imports of textile and clothing from India during 2013 was only US$ 338 million (i.e. 8%). Russia’s import of Man-made fibre textiles in 2013 was US$ 3 billion. However, import of man-made fibre textile from India was only US$ 24 million accounting for 0.8% in total imports of MMF textiles by Russia in 2013. Yarns were the dominant items in the export basket with nearly 60% share followed by fabrics and fibre 16% each and made-ups 8%.
Imports of Textiles & Clothing
Value in US$ Mn
Chapter |
Product Description |
Imports from World during 2013 |
Imports from India during 2013 |
50 |
Silk |
20.19 |
0.28 |
51 |
Wool, animal hair, horsehair yarn and fabric thereof |
36.99 |
0.33 |
52 |
Cotton |
564.35 |
15.26 |
53 |
Vegetable textile fibres nes, paper yarn, woven fabric |
53.66 |
3.51 |
54 |
Manmade filaments |
558.91 |
9.56 |
55 |
Manmade staple fibres |
751.98 |
16.83 |
56 |
Wadding, felt, nonwovens, yarns, twine, cordage, etc |
545.77 |
5.6 |
57 |
Carpets and other textile floor coverings |
313.61 |
12.84 |
58 |
Special woven or tufted fabric, lace, tapestry etc |
150.99 |
0.53 |
59 |
Impregnated, coated or laminated textile fabric |
412.36 |
1.15 |
60 |
Knitted or crocheted fabric |
611.49 |
5.74 |
61 |
Articles of apparel, accessories, knit or crochet |
4,189.68 |
97.89 |
62 |
Articles of apparel, accessories, not knit or crochet |
4,298.66 |
135.71 |
63 |
Other made textile articles, sets, worn clothing etc |
1,255.24 |
33.35 |
Total |
13,763.88 |
338.55 |
SOURCE: UN COMTRADE
Major Product Made Out of Man-made filament imported by Russia covers under chapter 54
HS Code |
Product Description |
Import during 2013 (In US$ Mn) |
540233 |
Textured yarn nes,of polyester filaments,not put up for retail sale |
44.33 |
540710 |
Woven fab of high tenacity fi yarns of nylon oth polyamides/polyesters |
34.54 |
540220 |
High tenacity yarn (o/t sewg thread),of polyester filaments,not put up |
32.79 |
540720 |
Woven fab obtaind from strip/the like of synthetic textile materials |
28.28 |
540782 |
Woven fabrics of synthetic filaments,<85% mixed with cotton,dyed,nes |
25.98 |
540744 |
Woven fabrics,>/=85% of nylon/other polyamides filaments, printed, nes |
22.29 |
540219 |
High-tenacity filament yarn of nylon or other polyamides (excl. sewing |
21.84 |
540333 |
Yarn of cellulose acetate filaments, single, nes, not put up |
20.67 |
540232 |
Texturd yarn nes,of nylon/oth polyamides fi,>50 tex/s.y.,not put up |
15.79 |
540110 |
Sewing thread of synthetic filaments |
14.23 |
540772 |
Woven fabrics,>/=85% of synthetic filaments, dyed, nes |
11.87 |
540234 |
Textured synthetic filament yarn of polypropylene (excl. sewing thread |
11.23 |
540752 |
Woven fabrics,>/=85% of textured polyester filaments, dyed, nes |
10.00 |
540231 |
Texturd yarn nes,of nylon/oth polyamides fi,<=50tex/s.y.,not put up |
9.72 |
540419 |
Synthetic monofilament of >= 67 decitex and with a cross sectional dim |
8.19 |
540211 |
High-tenacity filament yarn of aramids (excl. sewing thread and yarn p |
7.84 |
540773 |
Woven fabrics,>/=85% of synthetic filaments, yarn dyed, nes |
6.63 |
540821 |
Woven fab,>/=85% of artificial fi o strip of art tex mat,unbl/bl,nes |
6.12 |
540832 |
Woven fabrics of artificial filaments, dyed, nes |
5.82 |
540754 |
Woven fabrics,>/=85% of textured polyester filaments, printed, nes |
5.66 |
540247 |
Filament yarn of polyester, incl. monofilament of < 67 decitex, single |
5.20 |
540751 |
Woven fabrics,>/=85% of textured polyester filaments, unbl or bl, nes |
5.00 |
540753 |
Woven fabrics,>/=85% of textured polyester filaments, yarn dyed, nes |
4.64 |
540792 |
Woven fabrics of synthetic filaments, dyed, nes |
4.32 |
540784 |
Woven fabrics of synthetic filaments,<85% mixd with cotton,printed,nes |
4.18 |
540783 |
Woven fabrics of synthetic filaments,<85% mixd w cotton,yarn dyd,nes |
3.94 |
540742 |
Woven fabrics,>/=85% of nylon/other polyamides filaments, dyed, nes |
3.84 |
540269 |
Yarn of synthetic filaments, multiple, nes, not put up |
3.72 |
540823 |
Woven fab,>/=85% of artificial fi or strip of art tex mat,y dyed,nes |
3.55 |
540490 |
Strip&the like of syn tex material of an apparent width nt exceedg 5mm |
3.33 |
540730 |
Fabrics specif in Note 9 Section XI (layers of parallel syn tex yarn) |
3.12 |
540774 |
Woven fabrics,>/=85% of synthetic filaments, printed, nes |
2.91 |
540791 |
Woven fabrics of synthetic filaments, unbleached or bleached, nes |
2.80 |
540769 |
Woven fabric >85% polyester filaments, nes |
2.53 |
540411 |
Elastomeric monofilament of >= 67 decitex and with a cross sectional d |
2.35 |
540822 |
Woven fab,>/=85% of artificial fi or strip of art tex mat,dyed,nes |
2.24 |
SOURCE: UN COMTRADE
Major Countries exporting Man-Made filament products cover under Chapter 54 to Russia
Country |
Import during 2013 (In US$ Mn) |
World |
558.91 |
China |
182.40 |
Belarus |
123.85 |
Turkey |
50.35 |
USA |
29.95 |
Belgium |
18.23 |
Korea, Rep |
17.10 |
Japan |
15.19 |
Germany |
14.48 |
Kazakhstan |
13.47 |
India |
9.56 |
U.K. |
8.98 |
Italy |
8.38 |
Poland |
7.44 |
France |
6.73 |
Saudi Arabia |
6.66 |
Main Man-made Staple Fibre covered under chapter 55 imported by Russia
HS Code |
Product Description |
Import during 2013 (In US$ Mn) |
550320 |
Staple fibres of polyesters, not carded or combed |
198.56 |
550200 |
Artificial filament tow |
171.73 |
551219 |
Woven fabrics,containg>/=85% of polyester staple fibres,o/t unbl or bl |
77.89 |
550932 |
Yarn,>/=85% acrylic/modacrylic staple fibres,multiple,not put up,nes |
32.86 |
551341 |
Plain weave polyester stapl fib fab,<85%,mixd w/cot,<=170g/m2,printd |
27.77 |
550410 |
Staple fibres of viscose, not carded or combed |
25.03 |
551511 |
Woven fab of polyester staple fib mixd w viscose rayon staple fib,nes |
18.66 |
550810 |
Sewing thread of synthetic staple fibres |
12.92 |
550953 |
Yarn of polyester staple fibres mixed with cotton, not put up, nes |
12.72 |
550922 |
Yarn,>/=85% of polyester staple fibres, multiple, not put up, nes |
11.93 |
551422 |
Twill weave polyester staple fibre fab,<85%,mixd w/cotton,>170g/m2,dyd |
11.73 |
550961 |
Yarn of acrylic staple fib mixd w wool/fine animal hair,not put up,nes |
11.44 |
551321 |
Plain weave polyester staple fib fab,<85%,mixd w/cotton,<=170g/m2,dyd |
9.81 |
551120 |
Yarn, <85% of synthetic staple fibres, put up for retail sale, nes |
8.35 |
551421 |
Plain weave polyester staple fibre fab,<85%,mixd w/cotton,>170g/m2,dyd |
7.50 |
550912 |
Yarn,>/=85% nylon o oth polyamides staple fibres,multi,not put up,nes |
7.19 |
550130 |
Filament tow of acrylic or modacrylic |
7.08 |
550999 |
Yarn of other synthetic staple fibres, not put up, nes |
6.28 |
551513 |
Woven fab of polyester staple fibres mixd w/wool/fine animal hair,nes |
5.64 |
551110 |
Yarn,>/=85% of synthetic staple fibres, o/t sewing thread, put up |
5.55 |
551299 |
Woven fabrics,containg>/=85% of other synthetic staple fib,o/t unbl/bl |
5.37 |
550931 |
Yarn,>/=85% of acrylic or modacrylic staple fibres, single, not put up |
4.95 |
551311 |
Plain weave polyest stapl fib fab,<85%,mixd w/cottn,<=170g/m2,unbl/bl |
4.43 |
551423 |
Woven fabrics of polyester staple fib,<85%,mixed w/cot,>170 g/m2,dyed |
4.08 |
550330 |
Staple fibres of acrylic or modacrylic, not carded or combed |
3.79 |
550311 |
Staple fibres of aramids, not carded, combed or otherwise processed fo |
3.43 |
551429 |
Woven fabrics of oth synthetic staple fib,<85%,mixd w/cot,>170g/m2,dyd |
3.27 |
551412 |
Twill weave polyest stapl fib fab,<85%,mixd w/cotton,>170g/m2,unbl/bl |
3.22 |
551442 |
Twill weave polyester staple fibre fab,<85%,mixd w/cot,>170g/m2,printd |
3.19 |
551211 |
Woven fabrics, containing>/=85% of polyester staple fibres, unbl or bl |
3.19 |
550942 |
Yarn,>/=85% of other synthetic staple fibres, multiple, not put up,nes |
2.92 |
551229 |
Woven fabrics,containing>/=85% of acrylic staple fibres,o/t unbl or bl |
2.54 |
551599 |
Woven fabrics of synthetic staple fibres, nes |
2.40 |
551130 |
Yarn of artificial fibres (o/t sewing thread), put up for retail sale |
2.26 |
551521 |
Woven fabrics of acrylic staple fibres,mixd w man-made filaments,nes |
2.22 |
550941 |
Yarn,>/=85% of other synthetic staple fibres, single, not put up |
2.22 |
551430 |
Woven fabrics containing predominantly, but < 85% synthetic staple fib |
2.02 |
SOURCE: UN COMTRADE
EXPORTS OF INDIAN MAN-MADE FIBRE (MMF) TEXTILES TO RUSSIA DURING LAST FIVE YEARS
Value in USD MN
|
Fabrics |
Made-ups |
Yarn |
Fibre |
Total |
% Gr/Dec |
2009-2010 |
1.26 |
1.88 |
3.4 |
1.79 |
8.33 |
43.37 |
2010-2011 |
2.82 |
2.45 |
3.08 |
0.64 |
8.99 |
7.92 |
2011-2012 |
2.37 |
3.44 |
4.89 |
1.22 |
11.92 |
32.59 |
2012-2013 |
3.72 |
1.78 |
13.57 |
3.68 |
22.75 |
90.86 |
2013-2014 |
3.82 |
2.16 |
13.49 |
3.93 |
24.2 |
1.98 |
Source : DGCI&S
Russia is a growing market for Indian MMF textiles and exports were about Rs. US$ 24 Million during 2013-14, witnessing a growth of around 2% compared to the previous year. India’s current share is below1% in Russia’s import of US$ 3 billion of MMF textiles during 2013 whereas countries like China, Turkey, USA, etc. are the main suppliers of MMF textiles to Russia. Thus, there is substantial scope for exports Indian MMF textiles to increase its market share in Russia. Main items in the export basket of Indian MMF textiles to Russia in 2013-14 were Polyester Filament Fabrics, Polyester Viscose Fabrics, Viscose Spun Yarn, Sewing Thread, Viscose Staple Fibre, etc.
Import Tariffs
Russia, Kazakhstan and Belarus entered into a customs union applying a common external tariff (CET) - effective from January 1, 2010. Customs duties are payable on the c.i.f. (cost, insurance, and freight) value of goods. Duties are levied on an ad valorem basis. Specific duties are based on unit of measurement such as weight or volume and are stated and calculated in European currency units.
MMF Product |
HS Chapter/Heading |
Tariff Rate Range (%) |
Fibre/Yarn |
5401-5406/5501-5511 |
0 - 20 |
Fabric |
5407-5408/5512-5516 |
0 - 20 |
Made-ups |
63 |
15-20 |
Additional Import Taxes and Fees
In addition to tariffs, there are two types of charges applied to imports including MMF textiles into Russia, the VAT (value added tax) and selective excise taxes. Russian importers pay a VAT of 18%, which is applied to the import price plus tariff. However, children's apparel and medical supplies are subject to a 10-percent VAT. Fortunately, Excise tax DOES NOT apply to textile and apparel products unless they are leather goods.
A customs processing fee of 0.15% of the actual cost of the goods is also levied. There are two components to this fee - a miscellaneous customs clearance fee of 0.1 percent, payable in rubles, and a additional tax of .05 percent, payable in foreign currency.
India – Russia Trade Routes
The major part of Indian MMF textiles is transported from India to Russia by sea and some are transported by air. Basic routes for containers from port of Mumbai or other Indian ports are through ports of Kotka or other European ports into Russia. Another route from India is directly to Russian ports in Saint Petersburg, Nakhodka (East port), Novorossyysk, and further by a motor transport or on a railway to Moscow or other Russian cities. The time period of container transportation from India to Russia is 45-50 days.
Direction |
Time of delivery |
Approximate prices, USD per container |
Mumbai – port Sankt-Peterburg – Moscow |
45-50 days |
7700 |
Mumbai – Port Tallinn – Moscow |
45-50 days |
7500 |
Mumbai – port Kotka (Finland) – Moscow |
45-50 days |
7300 |
Mumbai – port Novorossijsk - Moscow |
45-50 days |
6800 |
Russian Textile Industry
Currently, Central and North West regions account for up to 80% of total Russian textile and clothing production, while the share of the vast Eastern region of the country is no more than 6%. In addition to uneven distribution of production capacities throughout the country, among the major problems of the industry are low wages, as well as high rate of depreciation of equipment at most of the Russian textile plants. According to the Russian Federal State Statistics Service, the annual level of replacement of machinery and equipment in the industry does not exceed 4%, compared to 16% in Western countries. In addition, high customs duties on some imported raw materials, such as cotton yarn is another problem of the industry.
Promotional Initiative of the Council
Indian textile manufacturers and exporters should explore the Russian market with the aim to enhance exports and to raise foreign exchange. Russia’s imports alone are worth about $14 billion textile products a year and despite India being one of the leading textile exporting countries, India’s textile exports to Russia are extremely low, at just $300 million dollars. Besides focusing on markets in Europe and America, the textile producers and exporters should penetrate in Russian market that was spending $ 3 billion a year on imports of Manmade fibre textile. It may also be pointed out that Kazakhstan, Turkmenistan, and Ukraine are also potential textile markets and Russia may be a gateway for exports of Indian textiles including MMF textiles to these countries.
In this context, the Council is mobilizing participation of its member – exporters in the Federal Trade Fair in Russia during February 2015. This Fair is a famous international Event organized in All Russian Exhibition Centre in Moscow which is one of the biggest fair grounds in the world. Participants from almost all countries of the world participate in the fair and the fair provides unique opportunity to the participants to interact with leading business houses, buyers, buying agents and whole sellers in Russia and nearby CIS Countries. Member-exporters should participate in the Event in a big way and take maximum benefit of the same.
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