Manufacture In Bond
Definition: Manufacturing in medicinal preparations under a bond, primarily for export purposes.
Key Features:
Bonded Premises: Facilities authorized to produce goods for export without immediate payment of duties or taxes.
Tax and Duty Exemptions: Exemptions or deferments on taxes until products are sold domestically.
Quality Control: Strict adherence to international standards for export.
Record-Keeping: Detailed documentation of production, raw materials, and exports is mandatory.
Regulatory Oversight: Enhanced monitoring by national and international regulatory bodies.
Benefits:
Encourages export-oriented manufacturing.
Reduces financial burden by deferring tax payments until domestic sale.
Manufacture Outside Bond
Definition: Manufacturing medicinal preparations for domestic consumption within the country.
Key Features:
Domestic Focus: Products intended for sale within the domestic market.
Compliance with National Standards: Adherence to quality, safety, and labeling standards as per Indian regulations.
Taxation: Manufacturers are liable for taxes and duties on their products.
Quality Assurance: Implementation of Good Manufacturing Practices (GMP) for safety and efficacy.
Distribution Control: Regulated distribution to prevent counterfeit products.
Benefits:
Ensures high-quality medicines for the domestic market.
Supports local pharmaceutical industries and economic growth.