The Union Ministry of Commerce has asked the Pharma companies to submit their comprehensive export information details to prepare a NTB database in an effort to face increasing pressures of non tariff barriers in exporting countries. These barriers are currently blunting the competitiveness of several medium and small scale pharma companies. The ministry has entrusted Pharmaceutical Exports Promotion Council to collect such information at the earliest.
The non-tariff duties including the anti dumping duty, product registration fee and various testing charges for the drugs before sealing the consignment, are some of the issues faced by the pharmaceutical companies while exporting abroad, especially in European Union (EU). Sources from the industry say that there is a significant growth in the incidence of non-tariff barriers (NTBs) in world trade, mainly introduced by the developed countries, meant to protect their domestic industry.
Further, the financial cost of compliance to standards set by the developed countries is difficult to meet by developing countries restricting their access to these markets. Even as the World Trade Organisation (WTO) agreement brought in a wide spectrum of measures for applying NTBs, the member countries are prone to frequent misuse of the system, taking advantage of the "gray areas" of the agreement, says a ministry official. The ministry is planning to bring in a NTB report with the database collected from various industries, according to ministry officials.
"The NTB is a major factor in Pharma exports, since the additional burden through non tarrif levies on domestic drug companies, restricts the further growth of pharma exports," said Dr P V Appaji, executive chairman, Pharmexcil. These countries are finding new excuses to impose levies on drugs imported from India and the database may support the industry to realize the actual situation.
Pharmexcil is seeking the pharma exporters, especially the big pharma companies who may have major impact due to NTBs in developed countries, to furnish relevant information on the specific proforma for the council to submit a consolidated report to the Commerce Ministry. The Council may submit the report within 10 days, with adequate information, added Appaji.