CBIC releases import clearance checklist for cosmetics, drugs, and medical devices
The CBIC has introduced a new checklist for customs officers reviewing imports. This standardized process aims to streamline clearances for drugs and medical devices. Businesses must upload all required documentation onto the e-SANCHIT portal. Industry experts welcome the shift towards a more transparent digital verification.
The Central Board of Indirect Taxes and Customs (CBIC) has introduced a standardized checklist for Customs officers to review import consignments of cosmetics, drugs, and medical devices. These goods must comply with strict regulations under the Drugs and Cosmetics Act of 1940, including mandatory licenses, permissions, and registration certificates. The new checklist aligns with measures from the Central Drugs Standard Control Organisation (CDSCO) to facilitate business in these sectors.
The compliance guidelines categorize the products into seven distinct groups: cosmetics, drugs as active pharmaceutical ingredients (APIs), finished formulations, imports for personal use, small quantity imports of new drugs by medical institutions, imports for testing and analysis, and medical devices. Medical devices are further divided into in vitro diagnostic kits/devices, general medical device imports, and raw materials used for manufacturing.
To expedite clearances, businesses must upload all necessary documentation to the e-SANCHIT portal. Customs officials are to check these documents at the earliest opportunity. Industry experts applaud the move towards a digital, streamlined process. Sivakumar Ramjee, Executive Director of Indirect Tax at Nangia Global, stated that this directive eliminates arbitrary bureaucratic obstacles and introduces transparency to the clearance process.
He highlighted that the shift from discretionary manual vetting to an objective, checklist-driven compliance framework will bring certainty and reduce port dwell times and demurrage charges for companies.
Rajat Mohan, Managing Partner at AMRG & Associates, emphasized that the success of the new checklist hinges on its ability to provide predictable, uniform verification, rather than introducing additional discretionary scrutiny. He noted that the CBIC has effectively integrated and standardized the existing CDSCO compliance framework into the Customs clearance process.
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