International Trade Customs
AT A GLANCE
1. Case was started in 1997 and first duty imposed in 1998
2. In May 2005, the EU had imposed ad valorem duties ranging from
17.3 per cent to 32 per cent on imports from India
3. European companies like DSM and Sandoz were affected by
4. Exports of India fell drastically because of CVD
5. The investigation concluded that even if CVD is withdrawn, it
won't affect the EU's pharma industry
The European Union (EU) Council has recently repealed the Countervailing duty(CVD) on Indian antibiotics exports after a period of 13 years. This will make antibiotic preparations of Indian companies like Ranbaxy, Lulip and Surya Pharmaceuticals more competitive in the European market. The antibiotics covered include amoxicillin trihydrate, ampicillin trihydrate and cefalexin. European companies like DSM and Sandoz will now not be safeguarded from subsidised imports. The CVD is over the basic Customs duty.
The EU move is based on research on data between April 1, 2009 and March 31, 2010.
The investigation concluded that even if CVD is withdrawn, it won't affect the EU's pharma industry as the latter had developed significantly despite large amount of imports from other countries. Also Indian export prices were not likely harm the EU industry as it was absorbing same pricing behaviour without suffering any material injury from other exporters.
However, the EU will continue to take note for two years the import volumes of the items concerned.
Ms. Moushami Joshi, Partner, International Trade at Luthra & Luthra Law Offices said that the repeal of the measures is a welcome relief for antibiotics exports from India.
India's schemes included Advance Authorisation Scheme, Duty Entitlement Passbook Scheme, Focus Market Scheme, Export Oriented Units/Special Economic Zones and Export Credit Scheme.
In May 2005, the EU had imposed ad valorem duties ranging from 17.3 per cent to 32 per cent on imports from India. Indian exports to EU had fallen drastically as a consequence of the CVD.
Antibiotics - The word antibiotic comes from the Greek anti meaning 'against' and bios meaning 'life' (a bacterium is a life form).' Antibiotics are also known as antibacterials, and they are drugs used to treat infections caused by bacteria. Bacteria are tiny organisms that can sometimes cause illness to humans and animals. The singular word for bacteria is bacterium.
Indian Drug Manufacturers' Association (IDMA) - IDMA was formed in 1961 to help Indian manufacturers and to protect the interest of the Indian consumer. IDMA has been in the forefront actively supporting Ministry of Health & Family Welfare. Various issues of policy or operational nature relating to the structure and implementation of the Drugs Cosmetics Rules at Central or State level are taken up with the authorities through representations and follow-up meetings.
Chinese State Food and Drug Administration (SFDA) - SFDA was founded on the basis of the State Drug Administration which is directly under the State Council of the People's Republic of China. It is in-charge of comprehensive supervision on the safety management of food, health food and cosmetics and is the competent authority of drug regulation in mainland China.