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This is an archive article published on August 14, 1999

Amway seeks extension for imports

NEW DELHI, AUG 13: Amway India, the multi-level direct marketing firm, has sought a two-year extension of its license to import products ...

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NEW DELHI, AUG 13: Amway India, the multi-level direct marketing firm, has sought a two-year extension of its license to import products for test marketing. It8217;s current FIPB approval for importing of products for test marketing runs out on October 20.

According to Amway, which wrote to the industry ministry last week, their US parent manufactures 450 products 8212; Amway India has been able to locally manufacture 13 products of Amway US8217; total portfolio. It now wants permission to be allowed to import any of remaining 437 products for test marketing. The products Amway produces in India include a car wash, body shampoos, cleaners and hand soaps. Amway has now written to the government saying that it no longer plans to import any of these 13 products.

Amway says that while the original FIPB clearance for importing products for test marketing was only for a period of two years, they were totally involved in getting their manufacturing base activated in India, and so could not actually utilise this permission fully. If the test marketing extension is given, and there is a positive consumer response to these products, the company will then see if it is viable to find manufacturers in the small-scale sector to produce these locally 8212; under the original clearance only those items can be imported which the company proposes to produce locally and through small scale units.

Amway8217;s original FIPB permission, however, states very clearly that the permission to import for test-marketing will be given for only a period of two years.

 

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