ISLAMABAD (July 17 2004): To encourage investment in pharmaceutical sector, the Central Board of Revenue (CBR) has slashed custom duty on the import of raw materials and chemicals from 25 percent to 10 percent.
The CBR has included 7 new pharmaceutical active ingredients and raw materials in the list of concessionary SRO 372(I)/2002 through a notification issued here on Friday.
Duty has been reduced on the import of vitamin C calcium granules (PCT heading 3824.9099); 2-cholorobenzonic acid; 2,3 dimethylaniline; citrus acid (monohydrated); hydroxy benzonic acid; parabens and piperazine citrate.
This is subject to the condition that the importer should follow the procedure laid down for concessional import under SRO 372(I)/2002.
The raw material and packing materials should be imported by manufacturer approved by the Director General, Health, under the Drugs Act, 1976 (XXXI of 1976), for manufacture of pharmaceutical products registered as drugs.
Moreover, the importers of chemicals engaged in manufacturing process shall furnish details of the raw materials required for manufacturing pharmaceutical active ingredients and an inspection team comprising representatives of Ministry of Health and CBR will conduct survey of the concerned unit.
The team shall certify the annual capacity of the unit for the manufacture of basic drugs and the total annual requirements of various types of raw materials along with the quantities required for the basic drugs.
The manufacturer shall furnish to the Health authorities the quantities of the raw materials imported along with the details of the products or basic drugs manufactured.
They would also follow other requirements as specified in SRO 372(I)/2002.