Pharma exporters push for SOP on direct airport cargo transfers

The Federation of Pharmaceutical and Allied Products Merchant Exporters (FPME) has called on the central government to establish a Standard Operating Procedure (SOP) allowing for direct airport cargo transfer of imported goods meant for re-export from the import shed to the export shed at Indian airports.

In recent representations to the Central Board of Indirect Taxes and Customs (CBIC) and the Directorate General of Foreign Trade (DGFT), FPME reiterated that the current system requires exports to take their shipments to distant bonded warehouse facilities.

 This adds considerable cost and an extended timeline of handling exports imported for re-export. FPME stated that this long-standing problem has defeated India's competitiveness in international trade.

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Under the current system, cargo - vaccines in this example - that came in under an importation for re-export must be moved (to bonded facilities like the Arshiya Free Trade Warehousing Zone, which is approximately 70km away) stored and then moved back to the airport with very strict customs supervision. This adds anywhere from 3 to 7 days onto the shipment, and costs upwards of ?1 lakh for each shipment.

FPME's rationale is simple, to simply allow direct airport shed transfers, so it is just an import and export customs clearance. The body argues the reform could shrink processing time to mere hours, reduce costs drastically, and make Indian airports a preferred hub over competitors such as Dubai and Singapore.

Industry representatives believe this single reform could transform India’s image as an export-friendly nation, boost foreign exchange earnings, and position Indian airports as globally competitive hubs for pharmaceutical exports.