Mumbai, Mar 12: The Indian Drug Manufacturers Association (IDMA) has sought several amendments in the current exim policy including allowing exports of free samples to the extent of 10 per cent of the FOB value when accompanying the consignment. The current exim policy, effective since 1997, is valid till 2002.IDMA has urged the new government to permit export of free samples upto 10 per cent of the FOB value when accompanying the consignment and subject to a limit of US $2000 per consignment (without any annual ceiling) when not accompanying the consignment.
Customs authorities, following the issue of public notice number 19/1997-2002 dated June 23, 1997, were not permitting such exports or were restricting the value of such export samples to Rs 25,000 in any licensing year.
The pharmaceutical industry says that such samples are needed to enable doctors to satisfy themselves about the efficacy and merits of the product, before prescribing these. Moreover, in the case of formulations, it is a universal practice to supply free samples along with the commercial quantity.
The association has also called for a dispensation of para 7.43 of the Handbook of Procedures 1997-2002 Volume 1, where the clearance of imports against the duty entitlement pass book (DEPB) entitlement certificate is to be allowed only after the verification of export details by customs authorities. The IDMA says that since DEPB shipping bills are constructed and passed only after the scrutiny of prescribed declarations and undertakings by the customs, and the documents are once again processed and verified by the regional licensing authorities before the issue of the DEPB certificate, further verifications by the customs is redundant.
The association has also sought the acceptance of pass book bills of entry for fixation of special brand rate of duty drawback. Currently, the pass book bills of entry are not being accepted as duty paying documents for the fixation of special brand rate.
The IDMA says that the pass book scheme was introduced in April 1995 and neither the policy nor the drawback rules were clear on the operational details. In the absence of any specific details, Indian Drug Manufacturer Association argues that it is only fair that the exporter should not be penalised if the payment of duty is done by debiting the credit in the pass book in the case of export shipments where a special brand rate of drawback is sought.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
