CBN, PHARMEXCIL join hands to strengthen pharma exports

The Central Bureau of Narcotics (CBN) and the Pharmaceuticals Export Promotion Council of India (PHARMEXCIL) have signed a Memorandum of Understanding (MoU) to facilitate legitimate pharmaceutical exports while strengthening regulatory oversight and preventing the diversion of pharma products and controlled substances.

The agreement brings together the Department of Revenue, Ministry of Finance, under which CBN operates, and PHARMEXCIL, established by the Ministry of Commerce and Industry, to improve coordination between regulators and the pharmaceutical export industry.

India is a major global supplier of active pharmaceutical ingredients (APIs), bulk drugs, formulations, biologics and medical devices. The new framework seeks to support the industry's international trade while ensuring that controlled substances and chemical inputs are not diverted for illicit use.

Focus on Trade Facilitation
A key element of the MoU is the development of a Voluntary Code of Conduct (VCC) for the pharmaceutical industry. CBN and PHARMEXCIL will work together to establish recommended practices for exporters to strengthen compliance and supply-chain safeguards.

The VCC will remain voluntary and non-binding and is not intended to create additional statutory or financial obligations for exporters beyond existing laws.

The partnership will also identify operational bottlenecks in export procedures and recommend measures to streamline legitimate pharmaceutical exports, supporting the government's broader Ease of Doing Business agenda.

Joint Workshops and Information Sharing
CBN and PHARMEXCIL will conduct joint workshops, seminars and awareness programmes for pharmaceutical exporters. These initiatives may involve other relevant agencies, including the Central Drugs Standard Control Organisation (CDSCO) and Customs.

The MoU also provides for information sharing between the two organisations, subject to applicable laws and confidentiality requirements. PHARMEXCIL member companies are expected to nominate contact persons to coordinate matters related to the Voluntary Code of Conduct.

The agreement was formally signed by Dr. Dinesh Bisen, Narcotics Commissioner, on behalf of CBN, and Raja Bhanu, Director General, PHARMEXCIL.

Six-Month Action Plan
Following the signing, the two sides discussed a six-month action plan focused on pan-India outreach, stakeholder sensitisation and the establishment of core areas for institutional and regulatory cooperation.

The collaboration is intended to help reduce dwell time for export authorisations and make legitimate pharmaceutical trade more efficient, while maintaining safeguards against the misuse of narcotic drugs, psychotropic substances and controlled precursors.

The MoU therefore seeks to create a balance between faster pharmaceutical exports and stronger regulatory compliance, supporting the sustainable growth of India's pharmaceutical export sector and the security of international supply chains.