The union commerce ministry, which has issued its clarification in regard to the DGFT notification announcing the formation of Pharmexcil, stated that all exporters in the drugs and pharma sector should seek Registration Cum Membership Certificate (RCMC) from Pharmexcil only as the new EPC has been approved with a view to provide the growing sector a much needed impetus.

In the clarification, which was issued in response to a set of queries from Pharmexcil, the ministry has confirmed that since Pharmexcil has been set up with an objective of focused attention to the drugs and pharma sector, it is appropriate that the pharma members are primarily served by Pharmexcil, while leaving the choice on the members to take membership of any other council as well. The ministry has also informed Pharmexcil that as independent council it should submit the proposals to the department for seeking assistance under MDA/MAI schemes.

The ministry, in its clarification, referred that as per the Handbook of Procedure Vol. 1, an exporter desiring to obtain a RCMC should declare his main line of business in the application, which shall be made to the EPC relating to that line of business and also as per Para 243 of the Exim Policy, each council is responsible for the promotion of a particular group of products, projects and services.

It may be recalled that the Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council (CHEMEXCIL), which currently includes the pharma panel had challenged the decision of the commerce ministry to approve Pharmexcil saying that it was taken after bypassing its own model byelaw that prescribes specific guidelines and procedures for the formation of a new EPC in the country.

But, the commerce ministry sources, had earlier maintained that the approval of Pharmexcil was done in a proper manner as the validity of the model bylaw is of mandatory nature and was followed by the concerned parties. They had opined that since the stipulation of EPF in the bylaw is meant for industry that doesn't have sufficient corpus, there was no need to apply this in case of pharma sector.

However, Satish Wagh, chairman, Chemexcil, when contacted said that he is yet to hear from the commerce ministry on a letter forwarded by the Council in response to a question in the Parliament last month regarding Pharmexcil formation. "Since Chemexcil has been operating in the area of pharmaceuticals and chemicals export promotion in the country, there is no need for another Council for the same purpose. But if the commerce ministry has approved Pharmexcil for some other purposes, we have no objection to it," he added.