Weeks after the Foreign Trade Policy 2004-'07 officially handed over the entire responsibility of promoting export of drugs and pharmaceuticals to Pharmaceutical Export Promotion Council (Pharmexcil), the union ministry of commerce is now reiterating its earlier stance that the exporters were free to choose the council they want to be part of for obtaining Registration Cum Membership Certificates (RCMC).
The opinion of the senior ministry officials has given credence to the doubts that the Directorate General of Foreign Trade (DGFT) may issue a note of clarification allowing The Basic Chemicals Pharmaceuticals and Cosmetics Export Promotion Council (Chemexcil) to continue to issue RCMC on behalf of drugs and pharmaceutical segment.
Speaking to pharmabiz.com, ministry officials informed the issue of overlapping of responsibilities was not just the case of Pharmexcil or Chemexcil, but is common with several other councils like Engineering Export Promotion Council, Chemicals and Allied Products Export Promotion Council, Leather Export Promotion Council, Sports Goods Export Promotion Council, Plastic Export Promotion Council etc. They also pointed out that there were 8 different export promotion councils for the textile sector in the country. Quoting Para 3.12.1 of the policy, the officials said, "an exporter already has the option to obtain an RCMC from FIEO or any other EPC, if the products exported by him relate to those EPCs." While the ministry officials is finding no need for any further clarification, the Chemexcil is known to be attempting to get things cleared for its members.
Interestingly, the union minister, in reply to a Lok Sabha question (Un-starred Q No 3591) during the previous session of the Parliament, had stated that the department of commerce is willing to consider formation of more council for pharmaceuticals if "conditional corpus funding is provided by other states and if the decision is in the interest of exports of the country."
As per the Foreign Trade Policy 2004-'07, the promotion of Drugs and Pharmaceuticals including intermediaries, herbal, ayurvedic, unani and homeopathic medicines, Biotech and biological products, Diagnostics, surgicals, nutraceuticals, pharma industry related services, collaborative research, contract manufacturing and clinical trials and consultancy operations are with Pharmexcil. While, the Chemexcil is in charge of Dyes and Dye intermediates, Inorganic, Organic and Agro chemicals, Cosmetics and Toiletries, Castor oil and its derivatives and Agarbattis.