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BDC&DA seeks Union govt intervention to implement reimbursement for all products including expiry dated drugs
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Nandita Vijay, Bengaluru
September 19 , 2017
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The Bangalore District Chemists & Druggists Association (BDC&DA)
has sought the intervention of the Union government to ensure that all
pharma manufacturers and marketers reimburse the total MRP value of
expired drugs and cosmetics with an addition of commission for
distributors and retailers. The reimbursement should be made without any
cut-off date and deduction of bonus and promotional discounts for all
drugs and cosmetics as per 65(17) of the Drugs & Cosmetics Rules
1945.
The Rule 65 (17) states that no drug can be sold by the
licensee after the date of expiration of potency recorded on its
container, label or wrapper or in violation of any statement or
direction noted on the same.
In a communiqué to the ministry of
health, BDC&DA has stated that the reimbursement should be made
without any cut-off date, deduction of bonus offers and trade discounts.
The pharmacy outlet can store the expiry drugs separately provided the
licensee has taken steps with the manufacturer for the withdrawal,
reimbursement or disposal of the same.
As per the existing
taxes, the levies will be charged when the sale is effected in the form
of invoice, expired foods cannot be sold or used. Therefore the question
of invoice does not arise. Moreover, payments and receivables come
under the purview of the income tax laws which do not relate with the
conditions of sale as indicated in the Drugs & Cosmetics Act &
rules, besides the GST Act and Rules.
Therefore, V Hari Krishna,
president, BDC&DA stated that goods which have come under the expiry
date are to be reimbursed by the way of goods and per the conditions of
Rule 65(17) of the D&C Rules on MRP to MRP basis without any cut
off date , bonus offers and promotional discounts in the form of
reimbursement document.
For instance, if a company is raising the
credit notes for the expired goods with a cut off date and deducting
bonus offers or promotional discounts which is causing disturbances to
the wholesalers and the retailers, where such products are unsold
accounting to expiry which are paid by the wholesaler.
The
Association has asked to clarify on the same as the manufacturers and
marketers are responsible for the brand expiry date and the pharmacy
trade is noway accountable for the same, except ensure separate storage
areas.
“The burden of collecting the expiry and reimbursing has
been shifted by the manufacturing company to the distributor without a
commission. The D&C Act Rule 65(17) must be adhered and we are
hoping that the government will look into the same,” said Krishnan.
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TOPICS
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