The Union Ministry of Finance has decided to consult the Ministry of Health before implementing the policy that restricts the import of drugs under chemical or generic name through Inland Container Depots (ICDs), in places including Delhi, Ahmedabad and Hyderabad, it is learnt.

The officials from finance ministry will be holding talks with health Ministry officials as the matter is bound with the rules according to the Drugs and Cosmetics Act 1940. Informed sources said, that the finance ministry has already sought the views of health ministry on the matter.

According to sources from the Central Drugs Standard Control Organisation (CDSCO), the circular does not add any new instructions other than the current provisions depicted as per Rule 43 (A) of Drugs and Cosmetics Act 1940. "The directions specified in the order are already there in the Act. The Customs office has just issued it once again so as to clarify some confusion, it seems," a Port officer under CDSCO told Pharmabiz.

Meanwhile, the manufacturers of Delhi and Hyderabad areas have been importing for export purpose through container depots for the last several years and advance licenses are issued by Directorate General of Foreign Trade (DGFT) mentioning specific ports.

The instruction issued by the Central Board of Excise and Customs on January 22, 2007, specifies that the Delhi, Ahmedabad and Hyderabad depots are for imports or exports through air, while Chennai, Kolkata, Mumbai, Kochi, Nhava Sheva and Kandla as depots for drugs being carried by sea into the country. The instruction, in practical, made the customs authorities not to accept import or exports of drugs from Delhi, Ahmedabad and Hyderabad in terms of ICDs.

As Pharmabiz reported, the decision of the customs authority attracted protests from the industry associations and Pharmaceuticals Export Promotion Council (Pharmexcil). "However, the industry was allowed to import drugs under chemical or generic name all these years. If the authority wants to curtail the activity, it should have to discuss the issue with the stake holders," Dr P V Appaji, executive director, Pharmexcil told Pharmabiz.

Pharmexcil is planning to take up the issue with proper follow-up, as the restriction comes as a heavy burden to the pharmaceutical exporters in the related area, according to D B Mody, chairman, Pharmexcil. He said, that the council would also submit a representation to the ministry of health to take the matter with top priority.