Budget 2013: OPPI bids for removal of customs duty on import of Un-denatured Ethanol

NEW DELHI: Asserting that the basic customs duty (BCD) is at a towering level when it comes to Pharma Grade Un-denatured Ethanol used in manufacture of anti-cancer formulations, the Organisation of Pharmaceutical Producers of India( OPPI) has asked for exemption/reduced customs duty of the same in Budget 2013.

OPPI said that a high customs duty of 150% is applied on Pharma Grade Un-denatured Ethanol falling under CTH 2207 10 90 (Chapter 22 under the Heading 'Beverages, Spirits and Vinegar') even when used in manufacture of anti-cancer formulations.

OPPI indicated that import of Pharma Grade Un-denatured Ethanol used in manufacture of anti-cancer formulations should enjoy exemption/reduced customs duty.

To ensure proper end use, importer/manufacturers may be asked to submit an "end use certificate" duly certified by a chartered accountant demonstrating the use of the imported product in manufacturing anti-cancer formulations, suggested OPPI.

OPPI also said that there should also be clarity on the classification of the said product and the same should be classified under Chapter 29 of the Customs Tariff Act.

Imported Pharma Grade (complying to BP, USP, JP, Ph Eur) Un-denatured Ethanol is used for manufacturing certain anti-cancer formulations, stated OPPI, solidfying its stand.

Moreover, Pharma Grade Un-denatured Ethanol is presently classified under CTH 2207 10 90, Chapter 22 under the Heading 'Beverages, Spirits and Vinegar'. Pharma Grade Un-denatured Ethanol when imported for use in anti-cancer drugs suffers the same customs duty as that applicable for beverages or spirits, added OPPI.