FEBRUARY 17, 2011

Exempt Adult Diapers - Requests by Senior Citizens and a Company wanting to manufacture!

C S Shukla President, Association of Sr Citizens, Sidhartha Extension

AS you are aware that Urinary incontinence is a very common problem facing by the old age people. It is often considered a normal part of ageing. It is mostly faced by women, who perceive it to be very embarrassing. It is a common and distressing problem, which may have a profound impact on quality of life. Persons who are affected get isolated themselves form society due to embarrassment and get depressed. Urinary incontinence can also cause medical problems such as skin problems and urinary infections. Bed bound patients can lead to pressure ulcers which can increase the risk of infections including osteomyelitis and sepsis. Adult Diapers are not manufactured in India and due to import its cost to ultimate user is very high. Further, this product is primarily used by the persons suffering from Urinary Incontinence, which generally occur to senior citizens. This group of persons are basically retired people, having limited income, and therefore, not in a position to afford the high rate of the Adult Diaper. These diapers are recommended by Doctors also. This is a medical product. Medical products are either exempted from excise duty or carry concessional rate of duty as compared to other products. Since, it is a clinical diaper / adult diaper as it is called the same is also a medical product and has no other use. We request your good offices to examine the request from a point of view to benefit senior citizens as adult diaper is used for incontinence only and helps the patient from disability like a wheel chair. You can imagine that it is a very embarrassing problem and is associated especially with old age/senior citizens. Sir, this product deserves NO excise duty. Sir, if central excise duty/CVD is removed on this product, it would really help senior citizens. In any case, there will be no loss of revenue as there is no manufacturing of this product in India so far. This would help business industry to create employment and above all the product would be available at reasonable cost to all senior citizens from problem of urinary incontinence.

Shaily Grover, Managing Director, Paramount Surgimed Ltd

Adult Diaper is a Product Used By the Patients Who Suffer From Urinary Incontinence. Urinary incontinence or the involuntary loss of urine is a very common problem facing the elderly population. It is often considered a normal part of ageing and seldom mentioned by patients, especially women, who perceive it to be very embarrassing. Affected persons may isolate themselves form society leading to social anxiety and emotional problems such as depression. Urinary incontinence can also lead to medical problems such as local skin irritation, rashes, and urinary infections. In the debilitated and bed bound patients it can lead to pressure ulcers which can increase the risk of localised and systemic infections including osteomyelitis and sepsis. This product is not manufactured In India and is being imported from various parts of the world and its cost to end users is quite exorbitant. This product i.e. Adult Diaper is classifiable under tariff heading 48184090 of the Customs Tariff Act. The tariff rate of duty on this product is 16%. However, by virtue of notification no. 4/2006 dated 1.3.2006, the effective rate of duty is 10%. For the purpose of CVD, the said product has been declared Under Section 4A of the Central Excise Act 1944 and accordingly, Excise Duty/CVD is levied on MRP basis i.e. 10% (declared MRP- 35% deduction). We understand that there are 5 major importers of the product & they charge MRP ranging from Rs 450 to Rs 750. As has been stated above, Adult Diapers are not manufactured in India and its import cost at the hand of ultimate consumer is very high. Further, this product is primarily used by the person suffering from Urinary Incontinence, which generally occurs to old aged persons i.e. senior citizens. This group of persons are basically retired people, having fixed income, and therefore, not in a position to afford the exorbitant price of the Adult Diaper. The cost of the product, due to incidence of custom/ excise duty/CVD is quite substantial. We would like to emphasize that this product is not a luxury product, it is not a baby diaper, it is an adult diaper which is used by only adults who are suffering from urinary incontinence. There is no other application, whatsoever, for this product. Out of total duty paid by the importer, nearly 50% cost is due to central levies. On an average, a patient is required to change the diaper at least 3 times a day thus costing the consumer, approx Rs. 4500/- a month at the current price, which is quite prohibitive.

We intend to manufacture this product in India, which fact, besides, creating employment, will help in creating import substitution. However, the current excise duty leviable on the said product is dampener as the same would add to the cost of the product at the hand of consumer, which they will not be able to afford. Incidentally, it is further pointed out that generally the medical products are either exempted from excise duty or carry lower concessional rate of duty as compared to other products. Since, it is a clinical diaper / adult diaper as it is called the same is also a medical product and has no other use. For example, wheel chair falling under CTH 87139090 is fully exempted from custom duty. This has been done keeping in mind the disability of a person. We request your good offices to examine the request from a perspective that a diaper is used for incontinence only and helps the patient from disability like a wheel chair. You can imagine that it is a very embarrassing problem and is associated especially with old age. Sir, this product deserves NIL excise duty. In view of the above, it is requested to kindly exempt from Custom/Central Excise Duty adult diapers in the interest of senior citizens. There will be no loss of the revenue to the Govt. as this product is not being manufactured in India at all. At the same time, this measure will encourage other manufactures to take up the production and, thereby, will reduce the import and save the precious foreign exchange to the country. We understand that Age Care India has also taken up the matter with the Ministry for exempting this product from Custom/Excise duties. Sir, removal of central excise duty/CVD would help a company like ours to take a decision to manufacture the product in India for the first time. In any case, there will be no loss of revenue as there is no manufacturing of this product in India so far. This would serve business industry to create employment. It would help import substitution saving precious foreign exchange and above all the product would be made available at reasonable cost to all senior citizens/ citizens suffering from problem of urinary incontinence.

Dr. S. C. Goyal General Secretary Age-Care India has sent in a similar representation.

Of late, the problem of urinary incontinence has arisen noticeably in senior citizens. There is no permanent cure for this disease as of now. Due to this problem, both men and women of old age get totally immobilized and restricted to use urinary devices i.e. bed pans etc. Due to this, affected persons isolate themselves from society leading to social anxiety and emotional problems such as depression. Urinary incontinence also leads to medical problems such as local skin irritation, rashes, and urinary infections. In the debilitated and bed bound patients, it can lead to pressure ulcers which can increase the risk of localized and systemic infections including osteomyelitis and sepsis. For this reason, people of old age who cannot move at all would pass urine at different times and different places. Also due to immobilization, they face other diseases like skin disease, bedsore etc. The only protective device available to them is adult diapers. This product is not manufactured in India and is being imported from various parts of the world and its cost for end users is quite exorbitant. We made an initial enquiry and learn that there are high customs duties including CVD on this product. Due to various taxes, primarily duties of customs. Which this product has to suffer, the cost to ultimate consumer is quire high. Further it is understood that MRP of this product varies from Rs.400/- to Rs.800/- for a pack of 10 Pcs.. As it is required to change 3 pieces in 24 hours, it makes impossible for the senior citizens to afford it, i.e. he will need 90 pieces a month which is costing about Rs.4500/- per month. Out of which, the taxes are about 50%. Therefore, it is a fact that if the duties of customs including CVD are completely waived, the cost of the product will come down and will be of great help to our senior citizens. As you know, Senior Citizens require a lot of incentives and some are also in place, like Income Tax Benefit, Travel Concessions etc., it will only be appropriate if this product is exemption from various taxes. Moreover, this product is not being manufactured in India and its import is also not very high, hence the loss of revenue to the exchequer will be insignificant. In view of the above, Ministry of Finance is requested to exempt basic duty of customs and CVD on this product. Moreover, the waiver of CVD will also encourage local manufacturer to engage in the manufacture of said product and, thereby, will help in import substitution and the cost of the product will also come down. By the measure, it is felt that senior citizens, old aged people will be benefited immensely as they live on limited income.