Pharma Sector Seeks Clearance of Imported APIs, Medical Devices
The strict customs scrutiny and non-clearance of imports from China has now hit the pharmaceutical sector— the lifeline amid the pandemic—making industry representatives to reach out to the government and seek urgent clearance of the goods at ports and airports.
 
In a communication to the Secretary, Department of Pharmaceuticals, the Pharmaceutical Export Promotion Council of India (Pharmexcil) said that it has been inundated with distress calls from its member companies over an acute disruption in manufacturing of pharmaceutical products over the past three days.
 
The letter was also marked to the prime minister's office (PMO)  and the Directorate General of Foreign Trade among others.
 
"Very critical KSM's (Key Starting Material), intermediates & API's (Active Pharmaceutical Ingredients) are not being cleared for the reasons not known to the industry at all," said the letter by Dinesh Dua, chairman, Pharmexcil.
 
Even critical devices such as 'infrared thermometers' and 'pulse oximeters' which are specifically aimed at covid diagnosis as also 'glucometers' and 'strips' are also held up at the Delhi airport, he said.
 
The letter dated June 27 noted that self reliance or the 'Atamnirbharta' principle will take its own time in a phased and considered manner through the government's incentives such as 'pharma parks' as also 'production linked incentives' (PLI).
 
Describing the delay in customs clearances as 'man-made' disruptions, the industry body said that they have created tremendous difficulties for the industry and if the clearances are not made on top priority "whatever great work" has been done to maintain the current 90%-100% production and supply chain may get completely diluted.
 
"We urgently appeal to you to kindly intervene in the matter on SOS and kindly instruct that clearances from customs are permitted and all these materials which are genuine in nature are allowed to be cleared and dispatched to ensure there is no disruption of manufacturing at all under any circumstances," it said.
 
Pharmexcil is just another industry body which has in the past few days reached out to the government and raised concerns over the delay in customs clearance and its impact on the supply chain.
 
Previously, the Apparel Export Promotion Council and India Cellular and Electronics Association reached out to the government last week seeking early customs clearance of their imported goods needed in the manufacturing process.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    ramchandranashok

    6 days ago

    Very unfortunate. The Customs should have a time bound frame within which to investigate, else the products should be released, otherwise the cost of the final products will go up and it's our lives which are on the anvil. The Govt authorities shouldn't play with the lives of the masses in this manner. It also does not bode well for Ease of doing business. Small businesses shouldn't collapse due to such artificial hurdles created at every step of doing business in India

    REPLY

    bvgreddy.library

    In Reply to ramchandranashok 5 days ago

    This is the problem with Lobby groups and groups with self interest taking priority over rule of law , They tell only half the story and keep peddling that by adding more masala about how country and people are suffering. Why don't they tell the truth about why they are held up. Both Chennai Customs & Delhi customs has already released details on these. There were delays on two specific days but they were cleared following day on both occasions. And now only products that were held is the ones which were grossly under invoiced to evade the tax. Till know this was very rampant but now govt tightened the screw on this.
    Atleast I expect Money Life to verify and present the facts from both the sides so that people don't get carried away by these motivated groups propaganda.

    Ramesh Popat

    7 days ago

    Solution can only come after each
    and every problem in due course!

    Strict scrutiny of Chinese imports affecting Indian industries
    With the Centre taking a tough stand on imports from China amid the border tensions, several industries that depended on inputs from that country are facing delay in getting their supplies as the goods are held up at ports and airports and are being subjected to stricter Customs scrutiny.
     
    Several industry bodies, from apparel to electronics, have written to the government urging faster Customs clearance as delays might affect the manufacturing process.
     
    Citing the gravity of situation, in a letter to Central Board of Indirect Taxes and Customs (CBIC) Chairman M. Ajit Kumar, the Apparel Exporters Promotion Councils said the delay in clearances of goods was adding to the crisis for the industry that was gearing up to get back to the normal after easing of lockdown in India and other countries.
     
    The delay was impacting operations and might cause further financial losses, it said.
     
    "Lately, Customs authorities at several ports are doing 100 per cent examination of goods originating from China, Hong Kong and Taiwan. It has created undue delay in clearance of imported inputs meant for production of garments for exports," AEPC Chairman A. Sakthivel wrote.
     
    In a letter dated June 23, the India Cellular and Electronics Association (ICEA) said the 'adverse' action by the Customs would impact over 200 mobile and electronic manufacturing units, set up following the 'Make in India', 'Digital India' and 'Phased Manufacturing Programme' initiatives.
     
    "There was refusal to clear, followed by delays. And now, about 100 per cent examination. The logistics of seamless movement is in total disarray," ICEA Chairman Pankaj Mohindroo wrote to the Finance Minister.
     
    Mohindroo said companies had received word from Chennai, Mumbai and Delhi airports about the new examination procedure for all China-origin consignment. The 100 per cent examination of only China-origin goods be stopped to help supply chain move without hurdles, he urged the Finance Minister.
     
    MAIT, industry body representing the information and communications technology sector, feels importers with 'authorized economic operator' (AEO) status should be excluded from such rigorous scrutiny.
     
    "We understand the step of thorough inspection of containers was being taken to safeguard India's interests. In such a case, as an industry we suggest importers with AEO status, also called Green Chanel Importers, be excluded from it as they are GOI-validated entities. As citizens of India, we will stand by decisions the government may deem fit to take," said George Paul, CEO, MAIT.
     
    As the call grows for lowering dependence on Chinese imports and becoming self-reliant, experts and industry players have cautioned against knee-jerk reaction and sought building of adequate infrastructure and supply chain in the country.
     
    The impact of such action at the moment might be severe as industries were reeling under financial crisis post-lockdown, experts said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    International flights to remain suspended till July 15
    The Directorate General of Civil Aviation (DGCA) issued a circular on Friday extending the suspension on scheduled commercial international flight operations to and from India till July 15.
     
    The restriction, however, will not be applied on all-cargo flights and other flights specially approved services by the DGCA.
     
    "The competent authority has decided that scheduled international commercial passenger service to/from India shall remain suspended till 2359 hrs IST of 15th July 2020," it said.
     
    On June 20, Union Civil Aviation Minister Hardeep Singh Puri said that re-commencement of international flight services will depend on factors like 'border acceptance' norms in the arriving country and the traffic demand.
     
    That time, he hinted at the prospects of bilateral bubble arrangements, which will allow some international operations between countries.
     
    At present, healthy demand for evacuation flights have been witnessed in the North America-India sector.
     
    Passenger air services were suspended on March 25 due to the nationwide lockdown to check the spread of Covid-19, although domestic air services has resumed in a phased manner.
     
    Subsequently, domestic flight services resumed from May 25. At present, airlines are only allowed to deploy 33 per cent of their total capacity.
     
    Earlier in the day, Puri tweeted that in one month since recommencement of calibrated domestic civil aviation operations in the country "our skies & airports have been busy".
     
    Around 18,92,581 passengers have flown so far on 21,316 flights across the country, he said.
     
    Last week, Puri had said that to ease domestic mobility and accelerate passenger traffic growth, the Centre will allow flights to more destinations.
     
    Nevertheless, these new flights and frequencies are likely to be within the 33 per cent capacity cap, he had said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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