The government has tightened the export ban norms on anti-malarial drug hydroxychloroquine by including special economic zones (SEZs) under its prohibition ambit to ensure there is no shortfall during Covid-19 crisis.
US President Donald Trump has said that he has requested Prime Minister Narendra Modi to release the amount of hydroxychloroquine ordered by the US after India last month banned the drugs for exports.
The drug is considered as a potential coronavirus treatment.
The Indian Council of Medical Research had recommended the use of hydroxychloroquine for treating healthcare workers handling coronavirus cases and also the asymptotic household contacts of the lab-confirmed cases.
The drug is also not allowed to be shipped by export -oriented units (EOUs) or under any export promotion scheme.
“The export of hydroxycloroquine and formulations made from hydroxycloroquine is no longer allowed from SEZs/EOUs or against Advance Authorisation or against full advance payment...The export shall remain prohibited without any exception,” the directorate general of foreign trade has said in a notification.
Under the advance authorisation (AA) scheme, firms are allowed to import raw material at zero duty but with the condition of export obligation within a certified time frame. SEZs are treated as foreign territory in terms of customs laws.
Normally export ban or restrictions imposed by the government does not apply on these zones as well as EOUs, which are specially meant to promote outbound shipments from the country.
In the case of export restrictions imposed on certain APIs and formulations, the government clarified that these curbs would not be applicable for units in SEZs.
Exporters availing themselves AA scheme benefits too get these exemptions.
But now the government has decided to include all these under the ambit of the export ban.
The drug is considered as a potential coronavirus treatment.
The Indian Council of Medical Research had recommended the use of hydroxychloroquine for treating healthcare workers handling coronavirus cases and also the asymptomatic household contacts of the lab-confirmed cases.
