Access to duty free inputs based on actuals to manufacturer of pharma products through Non-Infringing process - FTP Amended
AS per the existing Para 4.1.3 Foreign Trade Policy (FTP), “Advance Authorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) ”. This has been amended to read as, “ Advance Authorisation can be issued either to a manufacturer exporter or a merchant exporter tied to supporting manufacturer(s). However, advance authorisation under paragraph 4.7A of HBP. v1 (for pharmaceutical products manufactured through Non-Infringing (NI) process) shall be issued to Manufacturer exporter only .”
Advance authorisation scheme allows access to duty free inputs required to manufacture the export product. Inputs and its quantities are allowed either as per Standard Input Output Norms (SION) or ad hoc norms, based on average consumption data of the relevant industry.
There are certain manufacturing processes covered under Process Patents. Therefore, benefit of SION or ad hoc norms for such products (which are still under Process Patent, but product patent of which has expired) cannot be availed by manufacturer, other than the Patent holder. Such manufacturer, who wish to manufacture and export the product through a Non-infringing (NI) Process may require inputs and input quantities, other than that prescribed as per existing norms (SION or adhoc norms). Hence it has been decided to:
(a) Incorporate a new provision as paragraph 4.7A in HBP v1, within the scope of advance authorisationscheme, to allow this facility to pharmaceutical sector, subject to fulfilment of certain specified conditions.
(b) Further, since this facility shall be available to manufacturer exporters only and not to the merchant exporters tied to supporting manufacturer, paragraph 4.1.3 of FTP has been amended as stated above.
DGFT Notification No. 22/2009-2014 (RE- 2010) and Public Notice No. (RE- 2010) Dated: February 14, 2011