HS Code:
The category 'With a net engine power of less than 93.3 kW' typically includes machinery, vehicles, or equipment with engines that produce a power output below 93.3 kilowatts (approximately 125 horsepower). This category often encompasses smaller industrial machinery, agricultural equipment like tractors, and certain types of construction machinery under the Harmonized System (HS) Code structure, potentially falling under HS headings such as 8701 (tractors) or 8429 (self-propelled bulldozers, excavators, etc.). These products are widely used in agriculture, construction, and small-scale industrial applications, particularly in developing economies where cost-effective and lower-power equipment is preferred.
Total Trade Volume
USD 12.5 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
12% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements such as EU-Japan EPA)
Rising demand for compact agricultural machinery
Increased exports to developing regions with growing small-scale farming sectors, particularly in Africa and Southeast Asia
2021-2022
Shift towards electric and hybrid engines
Manufacturers are adapting to environmental regulations, leading to a slow but noticeable transition from traditional diesel engines in this power category
2020-2022
Supply chain disruptions due to geopolitical tensions
Delays in production and increased costs for components, affecting trade volumes and pricing
2022
The European Union introduced stricter emission regulations for non-road mobile machinery, impacting equipment under 93.3 kW. Manufacturers must comply with Stage V emission standards.
January 2023
Increased production costs for exporters to the EU market but potential long-term benefits in sustainability and market access
A partial reduction in tariffs on agricultural machinery, including products under this category, was agreed upon, boosting trade between the two nations.
February 2020 (reassessed in 2022)
Temporary relief for exporters, though long-term uncertainty remains due to ongoing trade tensions
India introduced incentives under the 'Make in India' initiative to promote domestic production of low-power machinery, imposing higher tariffs on imports.
March 2022
Reduced market access for foreign exporters, encouraging local joint ventures and investments