|
Rules Of Origin For Medical Devices Sector
Remains A Sticking Point Under India-UK Proposed FTA
"In the medical devices sector, a lot of issues related to
rules of origin are still there. Demand for customs duty concessions is also
there," the official said, adding negotiations are going on between the two
countries to resolve the differences in both goods and services sectors.
Finalising the rules of origin for the medical devices sector
remains a sticking-point in the proposed free-trade agreement (FTA) between
India and the UK and the talks are on to iron out the differences, an official
said.
Huge potential is there in the medical devices sector in
India, as it imports about 80 per cent of its requirement, with the US, Germany,
China, Singapore and Netherlands being top exporters of such devices to the
country.
"In the medical devices sector, a lot of issues related to
rules of origin are still there. Demand for customs duty concessions is also
there," the official said, adding negotiations are going on between the two
countries to resolve the differences in both goods and services sectors.
The government has taken steps to promote domestic
manufacturing of medical devices/equipment and attract large investment in the
sector. Such schemes/initiatives include Promotion of Medical Device Parks,
National Biopharma Mission, and a production-linked Incentive scheme for the
sector.
The six major categories of medical devices that are being
mainly imported into the country include consumables, disposables, electronics
and equipment, implants, IVD reagent and surgical instruments.
The 'rules of origin' provision prescribes minimal processing
that should happen in the FTA country, so that the final manufactured product
may be called originating goods in that country.
Under this provision, a country that has inked an FTA with
India cannot dump goods from some third country in the Indian market by just
putting a label on it. It has to undertake a prescribed value addition in that
product to export to India. Rules of origin norms help contain dumping of goods.
According to experts, India should refrain from giving duty
concessions, as the government here is promoting domestic manufacturing of these
devices.
"India can consider giving relaxations for those equipment
which are not manufactured in India," Rajinder Singh Kanwar from Export
Promotion Council For Medical Devices said.
The negotiations between the two countries for the agreement
cover as many as 26 policy areas/chapters. Investment is being negotiated as a
separate agreement (bilateral investment treaty) between India and the UK and it
would be concluded simultaneously with the free-trade agreement.
India is looking at greater market access for its
pharmaceutical products in the UK, as part of the proposed agreement with
Britain, the official added.
India has already secured greater market access for the
domestic pharma industry in a trade pact with the UAE. Under the pact, Indian
pharmaceutical products and medical goods will get regulatory approval within 90
days that have been approved in developed jurisdictions such as the US, the UK,
the EU, Canada, and Australia.
Similarly, the India-Australia trade deal would provide
fast-track approvals and quality assessment/inspections of manufacturing
facilities.
"In pharma, we are looking at a positive outcome from the
India- UK deal. Regulatory cooperation with the UK's Medicines and Healthcare
products Regulatory Agency is also on the cards," the official said.
India and Britain launched negotiations for the free-trade
agreement (FTA) in January with an aim to conclude talks by Diwali (October 24),
but the deadline was missed due to political developments in the UK.
India's main exports to the UK include ready-made garments
and textiles, gems and jewellery, engineering goods, petroleum and petrochemical
products, transport equipment and parts, spices, metal products, machinery and
instruments, pharma and marine items.
Major imports include precious and semi-precious stones, ores
and metal scraps, engineering goods, professional instruments, non-ferrous
metals, chemicals and machinery.
The UK is also a key investor in India.
The bilateral trade between India and the UK increased to USD
20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.
https://economictimes.indiatimes.com/news/economy/foreigntrade/rules-of-origin-for-medical-devices-sector-remains-asticking-point-under-india-uk-proposedfta/articleshow/105351885.cms
Nov 20, 2023.
|
