An inordinate delay in fixation of impromptu standards by Norms Committee in Director-General of Foreign Trade (DGFT) and its amendment has hampered fulfillment of the export obligation of pharmaceutical exporters and made money related requirements them.
Exporters need to satisfy their commitment through exports for importing raw material free of the obligation under different schemes including Advance Authorisation. The ad-hoc norms should be settled by Norms Committee in four months.
If norms are not finalized within the stipulated time period, exporters need to pay customs duty and applicable interest on the unfulfilled export obligation. Based on orders got from buyers, exporters apply to propel licenses to clear material under Advance Authorisation Scheme.
Exporters are submitting a complete application in seven sets along with documents/technical elements according to Appendix 4E to regional officials and thus provincial authorities issue licenses and send all documents to Norms Committee, DGFT, New Delhi for fixation of standards.
According to Appendix 4E, exporters need to furnish elements of imported items for the manufacture of export products. There is an unreasonable deferral of ad-hoc norms by Norms Committee.
“Where standards are not finalized by Norms Committee in the time limit for fixation of standards of four months from the date of receipt of the complete application alongside documents/technical details according to Appendix 4E, norms as applied for might be treated with as final”.
Currently, fixation of norms takes around eight to ten months from the date of issue of authorization. Whatever standards are endorsed by Norms Committee is not according to the authorizations issued to the exporters. As a rule, there are unintentional errors by officials while issuing letters to the exporters.
To correct a similar it again takes another eight to ten months. Delay in standards fixation and its amendment is also promoting an increase in interest liabilities of exporters and furthermore serious risk of exporters being included under Denied Entities List (DEL) by regional authorities for no blame of theirs.
Taking serious note of this, industry body Indian Drug Manufacturers’ Association (IDMA) had approached DGFT Alok Vardhan Chaturvedi attracting his thoughtfulness regarding the issue. IDMA in its portrayal to DGFT said “A few part exporters have informed us that their standards are not endorsed within as far as possible. If norms are not finished within the stipulated time period, exporters need to pay customs duty and applicable interest on the unfulfilled export obligation. Since standards are not settled by the officials in time according to Foreign Trade Policy 2015-20, the exporter should not be penalized and in the meantime, the concerned officials might be coordinated to legitimize delay in fixing norms within stipulated timelines.”
The industry body asked DGFT to take up the issue with Norms Committee and expedite pending issues on need in the interest of exporters and nation’s export activities.