With the Non-agricultural Market Access (NAMA) negotiations at the World Trade Organisation progressing further, India is preparing its response to the recommendations on the elimination of customs tariffs in the enhanced healthcare sector, in consultation with the stakeholders.

On the advice from the Commerce Ministry, the pharma department has asked the pharmaceutical associations to submit the suggestions on the proposed tariff lines sent by the WTO. India will file its response after combining the inputs from the stakeholders, sources said.

“The department of Commerce has informed that the proposal has been co-sponsored by the European Communities, Japan, Norway, Switzerland and the United States and seeks to eliminate custom tariff on healthcare related products including bulk drugs, pharmaceuticals, medical preparations, medical clothing, medical appliances, medical equipments, medical apparatus etc through five equal rate reductions,” the pharma department informed.

Developing countries are proposed to be given special and differential treatment in terms of binding (four) per cent of their sensitive tariff lines at (four) per cent duty and an extended implementation period. “The proponents have provided with some specific tariff lines of their export interest,” said the department letter to all associations, along with the list of tariff lines.

The department has asked the associations to examine the tariff lines and provide inputs urgently on four aspects namely: “Sensitive tariff lines (at the HS 6 and 8 digit level) that need to be protected from the purview of tariff cuts, minimum binding customs tariff level required to protect these sensitive tariff lines, possible implementation period, and products of export interest in this sector for India on which we could seek elimination of customs tariffs.”

It may be noted that the NAMA negotiations are based on the Doha mandate that calls for reduction of elimination in tariff peaks, tariff escalation, non-tariff barriers on goods that of export value and of the interest to developing countries. NAMA negotiations are considered to be important. A tariff binding is a ceiling above which a member country cannot apply a tariff, thus representing the maximum tariff than can be applied by a member.

The original Swiss formula, which has been propounded by the developed countries such as the US, the EC countries, Norway, and Japan, proposed to cut tariffs steeply without taking account of the existing tariff profile of a country. The modified formula, now sent to India for consideration, promises to take into account the tariff profile of the countries while carrying out tariff reductions.