Indian medical device makers seek higher tariff to curb import surge

Indian medical device manufacturers have sought an increase in the basic duty of 11 specific devices whose imports have risen over 15% in the last one year. The devices include linear ultrasound scanners, syringes and needles, endoscopes, oxygen therapy apparatus etc.

In a representation made to the ‘Global Tariff and Trade Helpdesk’ of the Directorate General of Foreign Trade (DGFT), the Association of Indian Medical Device Industry (AIMED) also wanted the government to take note of the import pattern of medical devices where the value is over $10 million today and disallow competitive advantage available to imports.

According to AIMED, diagnostic reagent kit imports rose 26% from $377 million to $477 million in a year. The major spike in imports was observed from China (30%), the US (20%) and Germany (11%), the association said. Similarly, syringes and needle imports rose 87% - from $68 million to $125 million in the last one year with China (13% increase), the US (96% increase) and Singapore (74%) being the top contributors.

The remedial measures suggested by the association include pruning of India’s global tender exemption list by reducing 121 medical devices that are made in India and "delete or restrict use" of alternate terminology for similar Indian medical devices licensed with different terminology. AIMED also called for the removal of 0% or 5% concessional duty on medical devices and keep it at a minimum 7.5% level to encourage local production. For products where adequate manufacturing capacity exists in India and over ₹100 crore revenue generated from exports, the association wanted India to keep basic duty at 15% to protect domestic investment for at least 5 years.

“We have filed the request to review duties to safeguard manufacturing of the 11 medical devices with a spike of over 15% over last year and for the ones where imports are over $10 million today. Let’s see how responsive this mechanism is," says Rajiv Nath, forum coordinator, AIMED.

In an official communication on April 11, DGFT announced the operationalisation of the helpdesk to look into issues relating to import and export challenges, import surges or dumping, exim clearance, logistics or supply chain challenges, financial or banking issues, regulatory or compliance issues related to any ministry or department of the central or state governments.