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Sector playbook

Pharmaceuticals exporters: the four things you are leaving on the table.

Formulations exporters operate on tight RoDTEP windows. Several HS-8 codes under 3004 were paused, restored, and re-paused within FY 2024-25. The cost of misreading a single trade notice can be Rs 4-8 lakh per quarter for a Rs 50 crore pharma exporter.

Sector export value, FY 24-25
Rs 2.07 lakh crore (FY 2024-25)
Avg RoDTEP rate
1.8%
RoSCTL stacking
Not applicable
HS chapters covered
30

Top 11 HS codes in this sector

Sorted by RoDTEP rate. Click through for the detailed page on each code.

HS codeDescriptionRoDTEPDrawbackGST refund
300490Other medicaments in measured doses or retail packs1.90%0.90%0.5%
294150Erythromycin and its derivatives1.80%0.85%0.5%
300420Medicaments containing other antibiotics, in dosage form1.80%0.85%0.5%
300410Medicaments containing penicillins/streptomycins, in dosage form1.70%0.80%0.5%
300439Other medicaments containing hormones1.70%0.80%0.5%
300120Extracts of glands or other organs1.60%0.75%0.5%
300432Medicaments containing corticosteroid hormones1.60%0.75%0.5%
293749Other steroidal hormones, n.e.s.1.50%0.70%0.5%
300321Medicaments containing hormones, not in dosage form1.50%0.70%0.5%
300431Medicaments containing insulin1.50%0.70%0.5%
300210Antisera, vaccines for human use1.40%0.65%0.5%

Quirks of this sector that cost exporters money

  • 01Pharmexcil RCMC mandatory for nearly all chapter 30 scheme claims.
  • 02Bulk drugs (Ch 29) and formulations (Ch 30) follow different scheme matrices.
  • 03FDA-approved facility certifications occasionally required to defend RoDTEP rate at audit.
  • 04PLI Pharma can run in parallel with RoDTEP and Drawback. Few exporters claim all three.
  • 05Cold-chain certifications for biologics need to attach to the consignment file at scrip generation.

Schemes that apply

Three illustrative cases from this sector

Names redacted at customer request. Recovery numbers from FY 2024-25 audits.

Rs 28,40,000 annual

Hyderabad formulations, 142 cr turnover

HS 300490 amendments in Q2 FY 2024-25 had changed eligibility for certain CAS numbers. The firm continued claiming at the old rate, triggering scrip clawback risk.

Rs 16,20,000 annual

Ahmedabad APIs, 76 cr turnover

Chapter 29 vs chapter 30 confusion was distorting the scheme stack. Bulk drugs and formulations follow different matrices.

Rs 6,70,000 annual

Mumbai exporter to Africa, 38 cr turnover

Pharmexcil RCMC validation had lapsed mid-FY, blocking RoDTEP scrips for 47 bills. Renewal plus retrospective re-application recovered the queue.

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