www.eximmitra.in February 2021

Overview

  • India is 3rd largest pharmaceutical market in the world in terms of volume and 14th largest in terms of value
  • India has the largest number of US-FDA compliant Pharma plants (more than 262 including APIs) outside of USA
  • India supplies 62% of the global demand for vaccines

Exports

  • Exports stood at US$ 15.06 billion during 2019-20, registering y-o-y growth of 2.10% and a CAGR of 5.40% during FY15-20
  • Exports during April- November 2020-21 stood at US$ 12.63 billion, accounting for 7.25% of the total merchandise exports from India during this period
  • The USA was the largest export destination for pharmaceutical exports, accounting for more than 38% of the total pharmaceutical exports from India during 2019-20
  • Top 5 export destinations accounted for more than 50% of the total pharmaceutical exports from India during 2019-20

Select Government Incentives

  • 100% FDI is allowed under the automatic route for greenfield pharma products
  • FDI upto 74% is permitted under the automatic route for brownfield pharma products
  • Production Linked Incentive Scheme for Promotion of domestic manufacturing of critical key starting materials (KSMs)/ Drug intermediaries and Active Pharmaceutical Ingredients (APIs) was launched with the objective to boost domestic manufacturing of critical KSMs/ drug intermediaries and APIs by attracting large investments in the sectors
  • Promotion of Bulk Drugs Parks Scheme was launched to bring down the manufacturing cost of bulk drugs and thereby increase the competitiveness of the domestic bulk drug industry, by providing easy access to standard testing & infrastructure facilities
  • Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) was launched with the objective of making quality generic medicines available at affordable prices to all
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Introduction of online e-Tariff Rate Quota System for Imports– DGFT has prepared the e-TRQ (Tariff Rate Quota) System for processing e-TRQ applications with effect from 08.02.2021 onwards. All applicants seeking Tariff Rate Quota for imports are required to submit their application online under “e-Tariff Rate Quota” in the Import Management System, through the importer’s dashboard on the DGFT Website.
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DGFT Notification for Food Import Entry Points– FSSAI has notified Authorised Officers to handle food import clearance at 150 food import entry points. The Food Imports entry point’s restriction shall be applicable for items against 1515 HS Codes as detailed in List B of Appendix: V to the schedule –I of ITC (HS) 2017.
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Strict Compliance to Limitation while filing Appeals/Petitions before Courts/ Tribunal- CBIC has issued strict compliance to limitation in filing Appeals/Petitions before Courts and Instruction for streamlining the process of litigation before Courts and Tribunal.
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Amendment of Importer-Exporter Code (IEC) related provisions under Chapter-1 and Chapter-2 of Foreign Trade Policy - IEC related provisions in Chapter-1 and Chapter-2 of Foreign Trade Policy, 2015-2020 are amended/deleted and new provisions are inserted. An IEC holder has to ensure that details in its IEC is updated electronically every year, during April-June period.
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• Trade Promotion Council of India seeks incentives for SEZs - Trade Promotion Council of India (TPCI) suggested commerce ministry to announce measures such as incentives for special economic zones (SEZs) in the next foreign trade policy (FTP) (2020-25) with a view to boost the country's exports.

• India, UK to launch Enhanced Trade Partnership during British PM’s India visit - India and the UK have held discussions on promoting bilateral trade and investments between the two countries, and decided to launch an Enhanced Trade Partnership (ETP) during the visit of British Prime Minister Boris Johnson in India.

• Government plans to launch Common Customs Electronic Portal- Government is planning to launch a Common Customs Electronic Portal to provide all trade-related information and facilities for importers and exporters, and improve ease of doing business. The proposed portal will facilitate registration, filing of bills of entry, shipping bills, payment of duty, and viewing and response to show cause notices, audits and other related inquiries by customs authorities.

• Exports up 10.3% during Feb 1-8 - India’s exports grew by 10.3 per cent to USD 7.3 billion during the first week of February 2021 on account of strong performance by key sectors such as engineering and chemicals.

• India's coal demand in 2020-21 to be lower than expected: -India’s coal demand in 2020-21 is likely to be lower than the initial estimate of 1,085 million tonnes (MT) due to the impact of COVID-19.

Delivery under FAS, FOB, CFR and CIF

Under Delivery under Free alongside Ship and Free On Board, the buyer’s prime obligation is to notify the seller the name of the vessel and loading point at the named port within sufficient time to enable the seller to deliver the goods.

Under ‘Cost and Freight’ (CFR) as well as ‘Cost, Freight and Insurance’ (CIF), the delivery occurs when the seller places the goods on board the vessel at the named port of shipment or by procuring the goods so delivered on the agreed date or within the agreed period, in the manner customary at the port.

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