Import and exports involve a lot of formalities. There are a precise set of guidelines laid by each country. These rules and regulations have to be followed to the T to avoid a glitch. However, when it comes to pharma products the formalities are clouded by complexities.
Exporting medicines needs a deeper level of understanding and insight into the process. One has to take care of the complex rules and regulations from both countries. It can be a tricky line that can get one into a new country or ban them forever.
Medicine is a sensitive product and its transactions are restricted with strict rules and regulations. Every country has different laws for importing and exporting of pharmaceutical products.
Indian Pharma at a Glance
Indian pharmaceutical sector is the third-largest in terms of volume and it ranks thirteenth in terms of value. Indian has established itself as a global manufacturing hub. The non-proprietary drugs comprise nearly 70 per cent of the market, whereas, over the counter medicines and patented drugs comprise 21 per cent and 9 per cent respectively.
How to export medicines from India to other nations
The preliminary steps to export pharma products starts with basic rules of registering the company and setting up the right marketing channels for the products.
Here is the 8 steps process that needs to be followed for exporting medicines from India:
Step I – Connection – Connect with the distributors or agents from the Importing Country
Step II – Product Registration – Register the products in the destination country.
Step III – IE code – Apply for Import export code
Step IV – Approval – Apply for approval of export from DCGI
Step V – Delivery – Choose the best feasible shipping method.
Step VI – Order – Accept the purchase order.
Step VII – Invoice – Prepare commercial invoice and complete all documentation. Sign contract with the freight forwarding agency
Step VIII – Custom clearance – Once all documentations are done, move to custom clearance. Custom clearance would be required in the importing country too. Hiring an expert agent in this step might make your job easy.
How to Apply IEC for exporting medicines from India?
- Visit the website of Directorate General of Foreign Trade
- Click on the ‘Online Application’ tab and select ‘IEC’ from the drop-down menu.
- Choose ‘Online IEC Application’.
- Enter your PAN number and log in.
- Click on ‘File’ and choose ‘New IEC Application details’
- Fill the details in the form.
- Click on ‘upload documents’ and upload the required documents.
- Click on the ‘Branch’ button to add any branch details.
- Click on ‘Director’ to add the details of the directors.
- Click on ‘EFT’ for online payment.
- Fill the amount as Rs. 250 and choose your bank to make a transaction.
- Check the details on the draft invoice and click on ‘Pay now’.
- Complete the payment and the application is done!
Required documents to apply for IEC Number
- PAN Number
- Current Bank Account
- Bankers Certificate
- IEC Code Number Application Fee
**Note: Send a hard copy of the application along with required documents to DGFT RLA concerned within 15 days of online submission.
Growing biz of Indian Pharma Exports
The Indian pharmaceutical sector has been soaring at a rapid pace. The pharma exports are pegged at US$ 17.27 billion in 2017-18. The Indian pharmaceutical sector is further anticipating a grow at a CAGR of 22.4 per cent. The expected number says that the Indian Pharmaceutical industry shall touch $US 55 billion by 2020.