API’s and formulation made from API’s exports allowed

21 Mar, 2020

Policy Circular No. 33/2015-20 & 34/2015-20

Dated. 20th March, 2020

Issued By. DGFT

Subsequent to the issuance of the Notification No. 50 dated 03.03.2020 restricting export of 13 APIs and 13 formulations made from these APIs, DGFT has received various representations from SEZ units and other exporters highlighting the issues faced by them in fulfilling their export obligations under Advance Authorization scheme by the exporters of APIs/Formulations.

  1. DGFT has examined these issues and the following is being clarified :
  1. As per the SEZ Rules, the restriction on exports does not apply to SEZs. It is, therefore, clarified that the exports of restricted APIs and Formulations made from these APIs is allowed from SEZ Units.
  2. The restriction notified vide Notification No. 50/2015-20 dated 03.03.2020 is applicable for only those item descriptions specified in the Notification and not on the other APIs/Formulations that may be falling under the same ITC (HS) codes and have different description. Therefore, it is clarified that all other items under the ITC (HS) codes in the notification other than the ones falling under the item description specified against each code in the Notification are allowed for exports.
  3. Consultation with the Ministry of Health and Family Welfare and Department of Pharmaceuticals, it has been decided that exports of all formulations for ITCHS codes falling under Chapter 30 in the Notification No. 50 dated 03.03.2020 shall be allowed to be exported under the Advance Licenses issued on or before the date of Notification (03.03.2020). Also, no enhancement of Quantity shall be permitted for import and export items in these Advance Licenses.

This issues with the approval of Competent Authority.

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