The Indian Chemical Council (ICC) has suggested constitution of a fund of substantial amount for reimbursement of REACH registration expenses.

In its pre-budget memorandum for 2011-12 to the Department of Chemicals and Petrochemicals (DCPC), the ICC also requested for evolving a mechanism for granting reimbursement of REACH expenses to incentivise chemical exports to European Union countries.

"The costs of data generation and registration fees in this context are extremely high and for companies exporting 7-8 products to Europe, the costs could run into crores of rupees," it said.

The ICC also wants that membrane in caustic industry should be considered as capital equipment and not spare.

"The membrane is an integral part and the main member of the membrane cell in which electrolysis of common salt is carried out to give caustic soda and hydrogen. It is certainly not a spare and is the heart of the membrane cell. It therefore deserves the same treatment while importation that is accorded to capital equipment and should be eligible for all concessions that are applicable to capital goods," the ICC said.

The ICC also recommended that imports against Duty Free Import Authorisations (DFIAs) should attract anti-dumping duty or alternatively an actual user condition be imposed.

"There is an anti-dumping duty on sodium hydrosulfite. However, imports against transferable DFIAs are permissible without payment of any import duty or anti-dumping duty. Since these licenses and authorisations are transferable, there is misuse of the DFIAs granted under the foreign trade policy."

According to ICC, imports of some petroleum solvents which fall under chapter 27 of Customs Tariff Classification attracting codes 2710 11 11, 12, 13, 19 are de-canalised.

The ICC further said that the global recession has affected many companies plan for investments and the sentiments are very weak on capital investments.

"In order to bring back the economy in growth mode, it is necessary that some incentives, like investment allowance, given earlier be re-introduced as a part of stimulus package," it said.