Director General of Foreign Trade has finally given its full endorsement to Pharmaceutical Export Promotion Council for issuing Registration cum Membership Certificate to pharmaceutical exporters clearing the confusion over the overlapping powers of Pharmexcil and Chemexcil.
In a latest notification, DGFT on behalf of the Ministry of Commerce and Industry, has clarified that the exporters of drugs and pharmaceuticals should obtain RCMC from Pharmexcil only. The notification has now cleared the ambiguity existed about the dual authority situation prevailed due to the co-existence of Pharmexcil and the pharma panel in the Chemexcil.
The ministry of commerce had so far adopted an ambiguous stand on the issue despite several arguments had cropped up in the past among the stakeholders about the overlapping powers of these two EPCs.
However, despite the DGFT notification (public notice No 61 dated 16th March) it is still not clear whether the pharma panel existing in Chemexcil will cease to exist or not.
It may be recalled that soon after the 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 had reiterated its stance that the exporters were free to choose the council they want to be part of for obtaining Registration Cum Membership Certificates (RCMC).
At that time, the ministry officials had even opined that 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.