• CCI AD FROM 5th April 2021

RUSSIA

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.

*******