[e-drug] Import tariffs on medicines (4)

e-drug
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E-DRUG: Import tariffs on medicines (4)
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Our research shows that very few countries structure their tariffs to
protect the local generics industry. If a country levies tariffs, they
tend to be of equal levels on both imported finished medicines and
active ingredients required for manufacture. (see p.9 of our study at
http://www.policynetwork.net/sites/default/files/Death&Taxesweb.pdf).
This means that very few countries are deliberately pursuing an "infant
industry" policy for their generic manufacturing sectors.

This finding is the same as that of the 2005 study for WHO by Richard
Laing, whose methodology we have strived to emulate where possible.
(http://www.who.int/intellectualproperty/studies/TariffsOnEssentialMedic
ines.pdf)

At any rate, levying tariffs on imported active ingredients is perverse
if the aim is to produce cheap local generics. Nevertheless, 50% of the
136 countries we studied levy such tariffs, thereby needlessly inflating
the final retail price.

Philip Stevens
International Policy Network
"Philip Stevens" <philip@policynetwork.net>

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E-DRUG: Import tariffs on medicines (5)
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I am afraid the general principle on tariffs as enumerated in various messages is not applicable to India which produces both finished formulations and active pharmaceutical ingredients (APIs). Indian formulators are free to buy the APIs from anywhere in the world; hence it is necessary to levy import duty to protect domestic industry. It is well known that China, for example, is selling APIs at uneconomical rates to Indian formulators. Moreover there is a levy (called Excise duty) both on locally produced APIs and finished formulations. Therefore it is essential to charge import duty so that there is level playing field.

Concerned groups in India have been demanding total abolition of any tariff on India produced APIs and finished formulations. Unfortunately this has not been done by the government both at the centre and states levels.

Dr. Chandra M. Gulhati
Editor, MIMS
(Monthly Index of Medical Specialities),
New Delhi, India.
Chandra Gulhati <seeemgee@yahoo.co.uk>