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Indian medical device manufacturers have urged the Finance Ministry to level the playing field with importers by increasing custom duties and imposition of Special Additional duties.
The Association of Indian Medical Device Industry (AIMED), representing nearly 700 local producers of a whole range of products including medical disposables, diagnostics, electronics and implants, said that dependence on imports should be reduced by making Indian manufacturers globally competitive.
Mr Rajiv Nath Forum Co-ordinator, AIMED, said, “In order to encourage existing medical device manufacturing companies to diversify product range import substitution products, the cost of the product needs to be viable in comparison of imported products.
“There is a need to reconsider present custom duty of 5 per cent on import of medical products and enhance it to 10 per cent.”Mr Nath, in his representation to the Ministry of Finance, said that Special Additional Duty of 4 per cent should be imposed on imported medical devices since domestic industry is paying VAT on finished goods. AIMED said anomalies between imported finished goods and components should be removed.
For example in the case of importing evacuated blood collection tube there is a custom duty of 5 per cent but on the other hand importing components like glass tube and cap attract a duty of 10 per cent.
Mr Himanshu Baid, Managing Director, Poly Medicure, said that income-tax benefit under 10A and 10B to EOUs should be extended for three years up to March 31, 2014 to give boost to exports. “Special Incentive should be given to companies working in labour intensive segments as this will allow generation of new employment,” Mr Baid said.
AIMED has also sought simplification of export procedures by waiving the need for getting a No Objection Certificate from the Drug Controller. “The NOC from the Drug Controller should be abolished for licensed manufacturers as it needlessly creates hurdles and delays in shipments leading to loss of goodwill for Indian manufacturers,” AIMED said.
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