Pharma & Healthcare Update
January 23, 2013
Bar Coding Requirement For Secondary Level Packaging Of Exported Medicines Enforced On January 1, 2013
The bar- coding requirements for secondary level packaging of pharmaceuticals exported out of India, as mandated under Director General of Foreign Trade's (DGFT) notification dated January 10, 20111 (the 'Notification'), have been enforced from January 1, 2013. Readers may recall that the Notification required all manufacturer and exporters, who are engaged in export of pharmaceutical products, to develop track and trace capability for their exports
Around two years ago, African regulatory authorities seized some consignments of pharmaceuticals exported to Africa supposedly from India on the grounds of being sub-standard or spurious. These consignments had labels of 'Made in India' pasted on them, though it was later found that the same had originated in some other country. This had tarnished India's image globally. In view of this and other similar incidences, the DGFT in the Department of Commerce had issued a Public Notice on January 10, 2011 mandating track and trace surveillance system for all exports of pharmaceuticals and drugs from India on primary, secondary and tertiary levels of packaging labels following GS-1 global standards.
MADRAS HIGH COURT ORDER
The decision to enforce the Notification was supported by the Madras High Court. The Confederation of Indian Pharmaceutical Industry and Indian Drug Manufacturers Association had jointly moved Madras high court on December 19, 2011 challenging the Notification. However, on December 21, 2012, the Court ruled in favor of the Government and declined to offer any extension from the implementation of the barcoding on the secondary level packaging.
The impact of the Notification has been discussed at length in the public domain by pharmaceutical associations and industry players. The requirements imposed by the Notification have led to increase in packaging cost. It may also lead to additional process burden, since the existing label approved from the country of import will have to be modified (that is, to add extra text / bar code).
However it is undeniable that the bar code system will reduce number of spurious drug which are exported out of India and assist in curbing the menace of spurious drugs.
2 GS1 India, "Implementation Manual for Barcoding using GS1 Global Standards for Tracing and Tracking of Pharmaceuticals and Drugs for Exports", available at http://www.gs1india.org.in/gs1barcodes/07-Guidelines%20as%20per%20DGFT%20mandate.pdf (last checked 09.01.13).
5 See DGFT Circular No.48 dt. 28.11.11, available at http://220.127.116.11/Exim/2000/CIR/CIR11/cir4810.htm and Pharmaceuticals Export Promotion Council of India's (Pharmexcil) circular on Status of Barcode dt. 31.12.12, available at http://tracktrace.blogspot.in/2012/12/pharmexcils-circular-on-status-of.html (last checked 09.01.13).
6 See DGFT Circular No. 43 (RE-2010)/2009-14, available at http://18.104.22.168/Exim/2000/CIR/CIR11/cir4310.htm and Pharmexcil's circular on Status of Barcode dt. 31.12.12, available at http://tracktrace.blogspot.in/2012/12/pharmexcils-circular-on-status-of.html (last checked 09.01.13).
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