Medical devices sector seeks abolition of List 37 to help domestic units

July 20, 2009 by
Filed under: Medical Devices 

Medical devices sector seeks abolition of List 37 to help domestic units
July 04, 2009, 0800 IST – Source : Pharmabiz NewsWith the finance minister Pranab Mukherjee is all set to present his budget on July 6, the Association of Indian Medical Device Industry (AIMED) is hoping that some measures would come through to protect the interest of the hugely potential sector which has been ignored continuously in the previous budgets.

 

“The medical device market which is currently mainly import dependent needs a special focus and infrastructure development status at least for the next four years. In order to make the Indian industry globally competitive, there is a need for a holistic development and to regulate the industry for which Inter-ministerial coordination is required between the Ministries of health, finance and science and technology,” AIMED principal forum coordinator Rajiv Nath said.

In a recent representation, AIMED has pleaded with the government to consider creation of a new Medical Export Promotion Council to promote export and to check custom impasse on the border. It suggested that the name of Pharmaceuticals Export Promotion Council should be changed into Medical Export Promotion Council for enabling the inclusion of lab ware, diagnostics and medical tourism with medical devices. Medical devices are not medicines, so it should be treated as a separate industry.

AIMED had appealed to the ministry for the abolition of List 37 which consists 111 medical and surgical instruments and appliances. Abolition of List 37 will encourage development of domestic industry.

According to this List, duty on import of components is higher than imported finished devices. This marks a huge loss for the indigenous industry and inhibits growth of Indian manufacturers. Importation of Blood Collection Tube (BCT), used for collection of blood for testing, attracts a custom duty of 7.5 per cent while import of components i.e. glass tube and cap fall under custom duty at 10 per cent which is higher than the finished product. In order to develop the indigenous market, the rate of custom duty on BCT as finished product must be increased from 7.5 per cent to over 10 per cent and custom duty on imported components should be reduced from 10 per cent to 5 per cent, the association said.

AIMED is an apex umbrella association of 700 manufacturers producing a wide range of products like medical disposables, medical diagnostics, medical electronics and medical equipments and implants.

 

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