New Delhi: The government has placed restrictions on the export of malaria drug hydroxycloroquine, which is now used to treat COVID-19 patients, from export-oriented units (EOUs) and SEZs to ensure sufficient supply of the medicine in the domestic market.
“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,” a notification by the Directorate General of Foreign Trade (DGFT) stated.
Under advance authorisation (AA) scheme, companies 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 of the country.
Like 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 special economic zones (SEZs).