Custom Duty on Home Decor in India
Indian Handicrafts Market
Indian handicraft products have received acknowledgment from various parts of the world resulting in an improvement in the field of international business. Many countries are importing handicrafts products to meet the demands of people for their décor needs. Handcrafted home decoration items are appreciated worldwide for their quality, design, and workmanship. So there is huge potential for the export of such products to the global market. It is of great significance for India by generating a substantial amount of revenue from foreign countries along with getting recognition for India’s rich culture and heritage through these handicrafts. Reaching a global audience means getting more export orders for home décor items. This will further increase the popularity of Indian handicraft products among international customers and help generate more revenue and employment opportunities for the handicraft industry.
Handcrafted Items for Home Decoration
These handicraft decoration products are a type of specialized item made using special raw materials and have incredible designs. The preparation of such products involves high artistic ability along with technical craftsmanship. In other words, such handcrafted items are more exquisite and unconventional. This is one of the reasons for the high demand for such products in the international market. A huge segment of non-resident Indians prefers such Indian handicrafts for their home or commercial places for decoration purposes. They feel satisfied by possessing such products which are the symbol of India’s rich culture and heritage. The Indian handicrafts industry deals with different types of products but the items meant for decoration purposes have seen an increase in demand both in India and abroad. These products are considered as the most popular category of handicraft sector that has been preferred by customers from different countries. So there is a great potential to earn handsome revenue in foreign exchange by exporting handmade home décor items.
The Popularity of Home Decor Products
The Indian handicraft home decor products are acknowledged for their creative design, variety, and raw material usage. People prefer using Indian home decoration items to create an ambiance at home that matches their culture and style. Indian home décor items have the quality and designs that serve the purpose of enhancing the aesthetics of interiors. The home décor products are the results of dedicated efforts and traditionally owned skills of the artisans that make them so exclusive and unique. Many Indians living abroad also feel that showcasing these products in their home highlights the tradition and culture of India. The products are also liked in western countries due to natural and organic raw materials which are almost rare in the products being used today. It also makes them a preferred choice considering the health and hygiene aspects. The handicrafts products belonging to the category of home decors are exclusive items in terms of the raw material used, creative designs, and workmanship. The home décor items are generally manufactured in various local segments of the country and reflect the local culture, art form, and skill of people from rural and semi-rural areas. Each type of item is unique in its way that makes them a preferred choice for home decorations. It is now quite obvious that handicrafts products have a huge demand in the global market so manufacturers need to adopt the best strategies to promote the products that facilitate import orders. The online platforms are helping the manufacturers effectively to promote their products to a global audience.
Customs Duty on Products
Customs duty is a type of charge applied on the product and collected by the respective country’s customs authorities when the items are imported from other countries. The customs duty is determined by the value of goods. Custom duty may also be named as import duty depending on the context. Customs duty depends on the classification of goods into certain categories so it is required to provide a detailed description of the product to allocate them to the correct tax slab. A reduction in customs duty can be a strategy to promote trade in that country. In India, custom import duty is kept at an optimum level, especially for handicrafts items. The basic customs duty is 10% which after the addition of IGST comes to around 28%. The price of a product is influenced by the import duty levied on that product and it affects the final selling price of the product in that country. In other words, the customers have to pay a higher price while purchasing the product in case of high import duty, whereas with less import duty, the products will have a more affordable price. Some countries intentionally apply high import duties on certain products to make them cost so that people buy more domestic products that help in the development of local businesses and products. The government initiative is always in favor of promoting local handicraft business with less dependence on foreign countries for products that can be made in the country. Sometimes, products having high demand and ready markets in a country are often relaxed from high custom duties that enable companies to import on a large scale and cater to the market demand. This helps maintain a balance between demand and supply. Any product when imported to a country must be identified by an HS code that decides how much the percentage of custom duty to be applied on the cost of goods. Import Value-Added Tax (VAT) is a consumption tax that is applied to goods entering the country. VAT is designed to distribute the tax burden across the supply chain.
Indian home décor products also attract customs duty when they are exported to other countries. Different countries can have different rates of customs duty even for the same product. To encourage exports, the government has taken initiatives to build trade relations with other countries in a way that helps to minimize the customs duty on handcrafted products exported to that country. The government has set up certain schemes that help small-scale handicraft manufacturers to execute the exports without much hassle. It is now possible to connect with buyers worldwide through export carnivals, trade fairs, and several virtual and online platforms which allow the manufacturers to promote their products to a global audience which can bring more import orders. With the increase in demand for Indian home décor products among the local people and the creation of new markets, many foreign countries are considering reducing customs duty on home decor products to allow more such products to be imported from India.
Online trade platforms
The emergence of various online trade platforms helps in listing all the handmade home décor products in an attractive way for visibility to international customers. A trading platform like Craftezy with e-commerce facilities helps manufacturers to get import orders from international customers for handicraft items and execute the same right away without the involvement of any major expenses. It is a new form of user-friendly digital channel for product promotion and sales that gives adequate support to showcase your handicraft products, manage listings, control the order process and get payment through simple and convenient methods. Craftezy helps in providing detailed information about products to customers so that they can decide on the type of products, the volume of orders, and the duties involved. The platform takes care of logistics and delivery of products to respective countries.
Encouraging Other Countries To Import
Indian home décor products have made an identity of their own in the world market by highlighting the special features and premium quality of the products. To support the handicrafts industry to develop through more export and revenue generation, there is a need to encourage foreign countries to place more orders for such products from India. One way is by creating a competitive environment, which allows the handicraft sector to improve their quality, efficiency, and innovative ideas to come up with more unique products with the application of skills and expertise. Importing handmade products from other countries gives Indian manufacturers exposure to international standards and guides them to improve their products to achieve a competitive advantage. This is a strategy to develop local products even by importing products with fewer customs duties. Indian handicraft products are mostly made up of natural sources which make them less expensive and attract low customs duty in the country importing Indian hand décor products. The foreign countries are aware of the high demand for premium and exclusive Indian home décor items in their markets and encourage imports on a larger scale to provide their respective customers with the choicest products.
Craftezy-The Online Trade Platform
The emergence of various online trade platforms helps in listing all the handmade home décor products in an attractive way for visibility to international customers. A trading platform like Craftezy with e-commerce facilities helps manufacturers to showcase their home décor products on a virtual platform and allow potential customers to visit and place orders for handicraft items. It also provides facilities to execute the order right away without the involvement of any major expenses. It is a new form of user-friendly digital channel for product promotion and sales that give adequate support to showcase your handicraft home décor products, manage listings, control the order process and get payment through simple and convenient methods. Craftezy helps in providing detailed information about products to customers all over the world so that they can select the product of their choice, do negotiations, and discuss the volume of orders and the duties involved. Craftezy takes care of logistics and execution of export orders to respective countries which is a great support to the manufacturers.
Indian home décor products have made an identity of their own in the world market by highlighting the special features and premium quality of the products. The foreign countries are aware of the high demand for premium and exclusive Indian home décor items in their markets and encourage imports on a larger scale to provide their respective customers with the choicest products. There is a good potential market for Indian home décor products that provides scope for export and revenue generation. There is a need to create a competitive environment, which allows the handicraft sector to improve their quality, efficiency, and innovative ideas to come up with more unique products with the application of skills and expertise. Importing handmade products from other countries gives Indian manufacturers exposure to international standards and guides them to improve their products to achieve a competitive edge. The availability of raw materials and skilled manpower is the greatest advantage of the Indian handicraft sector to scale up the production and deliver products as per the requirement of customers at a competitive price. The handicraft industry will flourish with more exposure to the international market and need to adopt the best possible marketing strategies for product promotion and sales. The availability of various marketing channels both offline and online can benefit the manufacturers by helping them reach out to more customers.