Billions of rupees worth of pharmaceutical exports from India may hit a roadblock owing to the Pharmaceutical Export Promotion Council of India (PHARMEXCIL) having failed to elect a Vice-Chairperson as instructed by the Ministry of Commerce. It was made compulsory for pharmaceutical companies to procure Registration cum Membership Certificates (RCMCs) for export. However, the delay has put several pharma companies in trouble as the last date for issuing RCMCs was March 31. Now the entire Indian pharmaceutical export trade is in limbo as customs officers might take cognisance of the lapse in procedures mentioned in Foreign Trade Policy 2015-20.
Ravi Capoor, Joint Secretary of the Department of Commerce, said that in the department’s letter to PHARMEXCIL dated December 7, 2015, the council was clearly instructed to implement paragraph 2.92 of the Handbook of Procedure of Foreign Trade Policy 2015-20.
The letter in possession of The Asian Age states, “As per FTP provisions, the Export Promotion Councils having RCMC powers need to follow paragraph 2.92 of the handbook of procedure.” Incidentally, paragraph 2.92 of the Handbook of Procedure states that to ensure transparency in export, it is mandatory to elect a Vice Chairman/Vice President and Executive Committee through e-voting. Despite this, PHARMEXCIL did not conduct the election.
Vijay Kongoni, Managing Director, Adlife Healthcare Private Limited, one of the registered pharmaceutical export companies of PHARMEXCIL, told this newspaper, “Despite repeated requests, the election hasn’t been conducted while all other Export Promotion Councils under the Ministry of Commerce have completed it. This is posing a hurdle in issuing RCMCs and without them customs can stop export of such companies that will lead to loss of billions of rupees.”
“The last date for issuing RCMCs was March 31. Exporters are worried as RCMC is the basic requirement as per guidelines of customs while carrying out exports and the fate of 4,500 members is in limbo,” he added.
The Indian pharmaceutical industry has become the third largest producer in the world and is poised to grow into a 20 billion dollar industry as stated on the website of the council.
As per the rules, RCMC also helps in getting certain benefits from customs and central excise authorities. But FTP states that not following advice on provisions would make EPCs ineligible to issue RCMCs and get grants under Market Access Initiatives (MAI) and Market Development Assistance (MDA) schemes.
Another exporter said, “Non-compliance of procedure regarding election of Vice-President is a major roadblock in the renewal of RCMCs. It is very important for PHARMEXCIL to conduct the election in order to renew RCMCs for 2016- 2017 to their members without which, exports will come to a standstill.”
Meanwhile, P.V. Appaji, Director General of PHARMEXCIL, said, “The process of recruiting the Vice-Chairman is in the process. However, it might take two weeks for completion.”
