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FPME concerned over export delays due to excessive manual documentation by customs despite ADC clearance

Shardul Nautiyal, Mumbai
Monday, July 15, 2024, 08:00 Hrs  [IST]

The Federation of Pharmaceutical Merchant Exporters (FPME) has raised concerns with the Centre about significant delays in export consignments caused by excessive manual documentation requests from customs officials, despite having clearance from the assistant drug controller (ADC) office. These delays, ranging from two weeks to one month, pose a substantial challenge to Indian exports and the overall ease of doing business.

The FPME has stated, "Customs officers at various ports continue to request ADC-related documents post-NOC, causing unnecessary delays. Although assurances were given that such requests would cease, the problem persists due to changes in customs personnel. This lack of proper coordination and the requirement for additional manual documentation have been identified as major bottlenecks, significantly impacting the export process."

To address the ongoing issues with customs procedures post-ADC clearance, the FPME has proposed a streamlined solution stating, "We recommend that whenever customs officers require clarification on ADC-related matters, they should directly email the ADC with the related exporter copied in the communication. This would replace the current system of verbal communication, which often leads to delays due to the limited authority of Custom House Officers (CHA) staff to respond adequately."

The merchant exporters have urged Pharmexcil to take up this matter with the Central Board of Indirect Taxes and Customs (CBIC) to issue clear guidelines. This would ensure continuity and clarity in communication between ADCs and customs officials, irrespective of changes in personnel, thereby reducing delays for exporters.

These delays, caused by the lack of coordination and excessive manual documentation requests, have severe repercussions on the competitiveness of Indian exports. The additional wait time of two weeks to one month not only affects delivery schedules but also undermines the confidence of international buyers in Indian pharmaceutical products.

“Urgent actions are required to improve the efficiency and fairness of export procedures, ultimately benefiting the entire pharmaceutical export community. The call for better coordination between ADCs and customs officials underscores the urgent need for streamlined processes to enhance the ease of doing business in the pharmaceutical sector,” stated a FPME official.

 

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