HS Code:
The category 'Of a power not exceeding 5,000 kW' typically falls under HS Code 8502.20, which includes electric generating sets and rotary converters with an output capacity not exceeding 5,000 kilowatts. This category encompasses a variety of generators often used in small to medium-scale industrial, commercial, and residential applications, including backup power systems and off-grid solutions. These products are critical for energy reliability in regions with unstable power grids and are increasingly integrated with renewable energy systems.
Total Trade Volume
USD 2.8 billion
Data from 2022
Source
United Nations Comtrade Database
USD 850 million
30.4% of total trade of total trade
Increasing
USD 450 million
16.1% of total trade of total trade
Stable
USD 380 million
13.6% of total trade of total trade
Increasing
USD 250 million
8.9% of total trade of total trade
Decreasing
USD 200 million
7.1% of total trade of total trade
Increasing
Average Rate
5.2%
Highest Rate
15% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements such as EU-USMCA)
Shift towards renewable energy integration
Increased demand for hybrid generators compatible with solar and wind systems, driving innovation in the sector.
2021-2022
Rising energy needs in developing regions
Significant growth in exports to Africa and Southeast Asia for off-grid and backup power solutions.
2020-2022
Technological advancements in efficiency
New models with higher fuel efficiency and lower emissions are gaining market share, influencing buyer preferences.
2022
The European Union has introduced stricter emission standards for imported generators under the Green Deal, requiring manufacturers to adapt to lower carbon footprints.
January 2023
Potential increase in production costs for exporters to the EU, but also opens opportunities for eco-friendly generator manufacturers.
A recent phase of the US-China trade agreement reduced tariffs on certain electrical machinery, including generators under 5,000 kW, from 7.5% to 4%.
March 2023
Expected to boost Chinese exports to the US, intensifying competition for domestic manufacturers.
India announced incentives for local production of power equipment, including generators, under the 'Make in India' initiative, coupled with higher import duties.
July 2022
May reduce import volumes in the short term but could encourage foreign direct investment in local production facilities.