IMPORT, EXPORT AND TRANSHIPMENT OF NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES

[Mr. M. GOVINDARAJAN]

NDPS Act

The Narcotic Drugs and Psychotropic Substances Act, 1985 (‘NDPS’ for short) is the law relating to narcotic drugs,-

• to make stringent provisions for the control and regulation of operations relating to narcotic drugs and psychotropic substances;
• to provide for forfeiture of property derived from, or used in, illicit traffic in narcotic drugs and psychotropic substances;
• to implement the provisions of the International Convention on Narcotic Drugs and Psychotropic Substances; and
• for matter connected therewith.

Narcotic Drug

Section 2(xiv) of the NDPS defines the expression ‘narcotic drug’ as coca leaf, cannabis(hemp), poppy straw and includes all manufactured goods.

Psychotropic substance

Section 2(xxiii) defines the expression ‘psychotropic substance’ as any substance, natural or synthetic or any natural material or any salt or preparation of such substance or material included in the list of psychotropic substances specified in the Schedule.

Prohibition on import and export

Chapter VI of NDPS Rules, 1985 deals with the import, export and transshipment of narcotic drugs and psychotropic substances.

Import into and export out of India of the narcotic drugs and psychotropic substance is prohibited except with an-

• import certificate; or
• export authorization

issued under the Rules.

The import of opium, concentrate of poppy straw and morphine, codeine, thebaine and their sales is prohibited save by the Government Opium Factory.  This will not be applicable to import of morphine, codeine, thebaine and their salts by manufacturers notified by the Government for the use in manufacture of products to be exported or to imports or small quantities of morphine, codeine and thebaine and their sales not exceeding a total of 1 Kg during a calendar year for analytical purposes by an importer after following the procedure prescribed and subject to such conditions as may be specified in the import certificate.

The import or export of consignments of any narcotic drug or psychotropic substance through a post office box or through a bank is also prohibited.

Import Certificate

The narcotic drug or psychotropic substance shall be imported into India only with an import certificate in respect of the consignment issued by the issuing authority in Form 4 or Form 4A.

The importer, in order to get the import certificate, in relation to narcotic drug shall apply with the original or certified copy of the excise permit issued by the concerned State Government.  A fee of ₹ 1000/- is payable to the Central Government along with the application.

The Narcotic Commissioner shall issue or deny the import certificate within a period of 21 working days from the date of receipt of an application completed in all respects.  If the import certificate is not issued within 21 working days, the Commissioner or any other officer authorized by him in this regard shall inform the applicant for reasons thereof.  The authority shall prepare 7 copies of import certificate and deal with them in the following manner-

• The original and duplicate copies should be supplied to the importer who should transmit-

• the original copy to the exporting country and shall produce the duplicate copy at the customs house, land customs station or airport where the consignment arrives or, in the case of imports by parcel post, at the post office of delivery, in order to obtain delivery of the consignment of narcotic drugs or psychotropic substances;
• the Commissioner of Customs or Post Master shall state on the copy presented to him by the importer that the narcotic drugs or the psychotropic substances have actually been imported and return the document to the importer who shall indicate on it that he has received the goods;
• the importer shall return the duplicate copy incorporating the endorsement from the Commissioner or Post Master and his own endorsement to the issuing authority-

• where the import certificate relates to narcotic drug, through the excise authorities of the State from which excise permit was produced;
• where the import certificate relates to psychotropic substance through the drugs controller of the concerned State;

• The triplicate copy should be supplied to the Commissioner of Customs concerned.  The Commissioner shall return it to the issuing authority along with the copy of the export authorization to be received at the time of receipt of the consignment from the Government of the exporting country with an endorsement as to actual quantity of narcotic drugs or psychotropic substances cleared.
• The quadruplicate copy should be supplied to the excise authorities of the State in which the narcotic drug is to be imported.  The quadruplicate copy of psychotropic substances should be supplied to the Drugs Controller of the concerned State for comparison with the copy produced by the importer.
• The quintuplicate copy should be supplied to the government of the exporting country for comparison with the copy furnished to them by the importer.
• The sextuplicate copy should be retained to the Drugs Controller, Government of India.
• The sepuplicate copy should be retained by the issuing authority in his office.

An import certificate may allow the importation of the quantity of the concerned drug or the substance in more than one consignment.

Conditions for import certificate

If the import is for manufacture of formulations for export, the manufacturer shall-

• ensure that no part of the drug imported under this certificate shall be sold or used to manufacture formulations for domestic sale;
• ensure that the formulations manufactured out of drug imported against this certificate shall not be diverted for domestic sale;
• furnish to the Narcotics Commissioner and the Drugs Controller General of India details of export of drugs n completion of export along with documentary evidence such as shipping bills, bills of lading and invoices;
• obtain transport permit from their State Excise authority/State God and Drugs Administration permitting transport of their consignment from port of entry to the factory premises;
• maintain separate accounts of actual quantity of narcotic drug imported, formulations produced, consignments dispatched and the quantity lying in balance;
• submit a monthly return of receipt/import, consumption and export of the narcotic drugs to the Narcotic Commissioner;
• follow the procedures for the security arrangements, maintenance of account sand submission of returns, possession, sale and distribution of formulations manufactured from the drugs imported under this certificate.

If the import is for the analytical purpose, the importer shall-

• ensure that no part of the drug imported under this certificate shall be used for any purpose other than for analytical purpose;
• information the Narcotics Commissioner about the complete utilization of the narcotic drugs imported; and

Export Authorization

No consignment of any narcotic drug or psychotropic substances shall be allowed to be transited through Indian unless such consignment is accompanied by a valid export authorization issued by the Government of the exporting country.  This will not apply to the carriage by ship or aircraft, or small quantities of such narcotic drugs and psychotropic substances which are essential for treatment of, or medical aid to any person on board the ship or aircraft.

The Issuing authority may issue an export authorization for a consignment in Form No. 5.  To get the export authorization, the export shall submit-

• where the export authorization relates to narcotic drug, along with the application the original or an authenticated copy of the excise permit issued by the concerned State Government; and
• the import certificate in original, issued by the government of the importing country certifying the official approval of the concerned Government.

A fee of ₹ 1000/- shall be payable along with the application.

The Narcotics Commissioner shall issue or deny the export authorization within a period of 21 working days from the date of receipt of an application completed in all respects.   If the export authorization is not issued within 21 days, the Commissioner shall inform the applicant the reasons for non issue.  The issuing authority shall prepare 5 copies of the export authorization and deal the same in the following manner-

• the original should be supplied to the consignor which shall accompany the consignment;
• the duplicate copy should be forwarded to the Commissioner of Customs of the port who will return to the issuing authority indicating on it the date of export and the quantity exported;
• the triplicate copy should be forwarded to the Government of the importing country;
• the quadruplicate copy should be forwarded to the excise authority of the State in which the exporter has his place of business;
• quintuplicate copy should be retained by the issuing authority in his office.

Transshipment

No consignment of narcotic drug or psychotropic substance shall be allowed to be transshipped at any port in India without the permission of the Commissioner of Customs, who will satisfy himself that the consignment is accompanied by a valid export authorization issued by the exporting authority.

Diversion of consignment

The Commissioner of Customs shall take all due measures to prevent the diversion of such consignment to a destination other than that named in the aforesaid export authorization.  The Commissioner may divert such a consignment to a country other than that named in the accompanying copy of the export authorization subject to the production of export authorization issued by the issuing authority, as if the diversion were an export from India to the country, or territory or new destination.

The Commissioner of Customs shall inform the issuing authority regarding the actual quantity of the narcotic drug or psychotropic substance, the diversion of the consignment of which was allowed whereupon the issuing authority shall inform the country from which the export of the consignment organized.

Discussions to this article

[YAGAY andSUN]

Dear Sir,

Whether any statutory returns are required to be submitted on import, export and transhipment of Narcotic Drugs and Psychotropic substances. Please guide us on this matter also.

Regards,

YAGAY and SUN

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

There is no statutory returns prescribed in the Act or the Rules. However the Narcotic Drugs and Psychotropic Substances) Order, 2013 (with effect from 26.03.2016) provides for filing the following quarterly returns to Zonal Director of the Narcotic Control Bureau having jurisdiction over the area-

Form E - Quarterly return of manufacture of controlled substance in Schedule A;

Form F - Quarterly return of receipt, import sale, consumption or export of controlled substance.