In an embarrassment to the Pharmaceutical Export Promotion Council (Pharmexcil) and the industry, the Centre has claimed that it did not get any representation from the export promotion body regarding the inconveniences faced by the pharma manufacturers due to the ban on import of drugs through ICDs of Delhi and other places.
However on the other hand, if the claim by the Pharmexcil that it did take up the problem with the authorities is believed, the answer given by Minister of State for Chemicals and Fertilizers B K Handique to a question in the Parliament could amount to be a misleading statement.
In a reply to Adhir Chowdhury on May 7 in the Lok Sabha, Handique denied that the exports of drugs have been affected due to the ban on clearance of import of drugs and drug intermediates under advanced licenses.
"Pharmexcil has informed that they have no information regarding ban on clearance of import of drugs and drug intermediates under Advanced Licenses," the Minister said and cited the Ministry of Finance (Central Board of Excise and Customs) communication (no.450/08/2007-Cus.IV dated January 22, 2007) which spelled out the names of import points of drugs under Rule 43A of the Drugs and Cosmetics Act.
However, as reported by Pharmabiz earlier, the revised list had excluded the two Inland Container Depots in Delhi, besides that of Hyderabad and Ahmedabad, causing large troubles to both small and big drug manufacturers. Later the Pharmexcil claimed that it sent a letter the chairman of the central board of Excise and Customs in this regard. The copy of the letter by its executive director was also available on their website.
In a recent letter to industry leader Lalit Kumar Jain, Pharmexcil chairman D B Mody, recalled about the letter and said he had sent another letter again to CBEC chairman, seeking to intervene and help resolve the issue.
Contradicting all these and what could be a misleading information, the Minister in his reply said "Pharmexcil has informed that they have not submitted any representation to the Government in this regard. Director General of Foreign Trade has also informed that there is no specific information regarding ban under the advance authorization scheme on import of drugs and drug intermediates affecting exports."
It is also learnt by the Pharmabiz that the Homeopathic Pharmaceutical Association of India also took up the issue with the authorities, besides the industry leaders met the officials to convince them of the troubles faced by the pharma units.
According to the notification issued by the Centre in January, Chennai, Kolkota, Mumbai, Cochin, Nhava Sheva and Kandla would be the only seaports to import drug materials, excluding the ICDs at Thuglakabad and Patparganj of Delhi, Hyderabad and Ahmedabad. Chennai, Kolkota, Mumbai, Delhi, Ahmedabad and Hyderabad are the entry points for drugs imported by air, along with a few other places like Amritsar, Ranaghat, Bongaon, Mohiassan and Raxul railways stations for drugs by rail across the frontiers of neighbouring countries. Due to this move, drug materials were held up and flow was also affected.