The formulation exporters all over the country have voiced concern about the recently imposed restrictions on the penicillin imports on Advance Licensing Scheme (ALS). Although the governments 's intention behind the move is to protect the local manufacturers of penicillin, the exporters have objected to the restrictions on issuance of advance licenses and also on the shortening of export obligation period from 6 months to 3 months.

The Director General of Foreign Trade (DGFT) had on July 22 issued a circular regarding these restrictions on the penicillin imports. According to the circular, no Advance Licence shall be issued for a period of 30 days from the date of issue of this policy circular for import of penicillins and its salts.

And the Circular also stated that wherever import of penicillins and its salts is allowed under Advance Licensing Scheme, export obligation period for such licences shall be restricted to three months from the date of clearance of import of first consignment. An endorsement in the Advance Licence shall be made by the licencing authority to this
effect and no further export obligation period extension shall be allowed in these licences.

It has also clarified that wherever Advance Licences already issued for import of penicillins and its salts there will not be any further extension of export obligation period shall be granted.

However, the exporters complained that even after the expiry of the said one-month period of suspension of new ALS issuance, the DGFT is yet to resume the same. This has caused many exporters availing the scheme for their already bagged export orders.

In addition, the export obligation period, which was cut short to three months, is a cause of serious concern as 3 months is too short period for execution and completion of export orders.

The exporters have approached the Pharmaceutical Export Promotion Council (Pharmexcil) to help them resolving the problem. The Pharmexcil, already in talks with the DGFT, said that the matter has been brought to the attention of the authority and an appropriate action is awaited soon.