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TMI BlogTrack and Trace Scheme for Export of PharmaceuticalsX X X X Extracts X X X X X X X X Extracts X X X X ..... Track and Trace Scheme for Export of Pharmaceuticals - By: - YAGAY andSUN - Customs - Import - Export - SEZ - Dated:- 17-1-2025 - The Track and Trace (T T) system for pharmaceutical products is an essential component in modern supply chains, particularly for ensuring the integrity, authenticity, and safety of medicines as they move across international borders. For pharmaceutical exports, this system is used to monitor and trace the movement of drugs from the point of manufacture to the end consumer or healthcare provider. Pharmaceutical products, especially those that are high-value , high-risk , or subject to regulatory scrutiny (e.g., controlled substances , narcotics , or counterfeit-prone drugs ), are increasingly being subjected to m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... andatory Track and Trace requirements by both Indian authorities and international regulatory bodies . 1. Objectives of Track and Trace in Pharmaceutical Exports The primary goals of a Track and Trace system in pharmaceutical exports are: Combatting Counterfeit Drugs : Track and Trace helps reduce the risk of counterfeit medicines entering the supply chain, which can harm public health and undermine the pharmaceutical industry. Ensuring Product Integrity : The system ensures that medicines are not tampered with, stolen, or exposed to adverse conditions during transit. Regulatory Compliance : Track and Trace systems are often a regulatory requirement in many countries, ensuring that pharmaceutical exports comply with international standards. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supply Chain Transparency : The system enables visibility into the entire supply chain, which improves logistics efficiency and helps in case of product recalls or quality issues. Consumer Protection : Ensures that consumers receive authentic and safe medicines. 2. Indian Track and Trace System for Pharmaceutical Exports In India, the Track and Trace system for pharmaceutical exports is governed by a combination of domestic regulations , international trade standards, and the Drug Controller General of India (DCGI) guidelines. The system is designed to ensure that drugs exported from India meet quality standards and comply with international market requirements. a. Regulatory Framework in India: The Central Drugs Standard Control Organizat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (CDSCO) under the Ministry of Health and Family Welfare is the primary regulatory authority overseeing the Track and Trace scheme in India. The Drug and Cosmetics Act , along with the Drugs and Cosmetics Rules , governs the manufacturing, packaging, and labeling of pharmaceutical products, including the requirement for Track and Trace. b. Unique Identification Code (UIC): In India, the Track and Trace system often involves the use of a Unique Identification Code (UIC) or Serial Shipping Container Code (SSCC) for each unit of product. The UIC helps track a product's journey through the supply chain by assigning a unique identification number to every package. c. Serialization: Serialization involves placing a unique serial number on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... each individual package of pharmaceuticals. This serial number is part of the label and is scanned at various checkpoints during the supply chain. Indian manufacturers must serialize products as per the Global Standard for Traceability (GS1) or other internationally recognized standards. Serialization must include product-specific information such as: Batch number Expiry date Unique code Manufacturing date d. QR Code: Many pharmaceutical products are now labeled with QR codes , which can be scanned using mobile devices or scanners to provide consumers, suppliers, and regulators with product information. The QR code typically contains the serial number and key details about the product. e. Integration with International Standards: Indian pha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmaceutical exporters must ensure that their Track and Trace systems are compatible with the regulations of the destination countries. For instance, countries like the United States (via the Drug Supply Chain Security Act - DSCSA ), European Union (via the Falsified Medicines Directive - FMD ), and others require specific serialization, packaging, and labeling formats. f. Reporting and Data Sharing: Exporters must also comply with regulations around the data sharing of product movement. This may involve sharing serial numbers, batch numbers, shipment details, and tracking information with regulatory bodies or authorized entities in the destination country. Data collected from Track and Trace systems must be stored securely and be accessible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for future audits, investigations, or regulatory inquiries. 3. International Track and Trace Requirements for Pharmaceutical Exports Pharmaceutical exports must adhere to the specific Track and Trace requirements of the importing country. Some of the key international regulations and schemes include: a. Drug Supply Chain Security Act (DSCSA) USA: The DSCSA mandates that drug manufacturers, replacers, wholesale distributors , and dispensers in the U.S. track the movement of prescription drugs through the supply chain. The key provisions include serialization, electronic tracking of pharmaceutical products, and verification of product authenticity. Indian exporters sending drugs to the U.S. must comply with serialization and submit relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... data through authorized third-party partners to meet the DSCSA requirements. b. Falsified Medicines Directive (FMD) European Union: The EU FMD aims to prevent the entry of falsified medicines into the supply chain. It requires that pharmaceutical products are serialized and that a safety feature (such as a tamper-evident seal ) is included in packaging. The FMD also mandates delegated acts for Track and Trace, ensuring that products can be traced across the supply chain and that unauthorized sales are prevented. For the EU, Indian exporters must ensure that pharmaceutical products comply with serialization and tamper-evidence regulations, along with submitting data to the EU Hub . c. Global Serialization Standards: International standards s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch as GS1 , ISO , and HHS (Health and Human Services) guide the implementation of Track and Trace for pharmaceuticals. Indian pharmaceutical exporters must ensure their serialization and labeling comply with these global standards to avoid any trade barriers when exporting. d. Other Countries: Many countries, including China , Brazil , Russia , Mexico , and several African nations, have adopted or are moving towards mandatory Track and Trace systems for pharmaceuticals. Exporters must familiarize themselves with the specific serialization, labeling, and data-sharing requirements for each country. 4. Technology and Infrastructure for Track and Trace The successful implementation of a Track and Trace system requires the use of advanced techn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ologies and robust infrastructure. Key components include: a. Barcode and RFID Technology: Barcodes and Radio Frequency Identification (RFID) tags are commonly used for tracking pharmaceutical products. These technologies allow quick and accurate scanning of products as they move through various stages of the supply chain. b. Cloud-Based Platforms: Many pharmaceutical companies use cloud-based Track and Trace platforms that allow real-time data access and synchronization with regulatory agencies, distributors, and wholesalers. These platforms are integral in managing large volumes of data related to pharmaceutical shipments. c. Data Analytics and Block chain: Data analytics help pharmaceutical companies to monitor trends, track product move ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments, and identify any irregularities or issues in the supply chain. Block chain technology is increasingly being explored for Track and Trace as it provides an immutable record of all transactions and ensures the authenticity of the product at each stage of the supply chain. 5. Challenges in Implementing Track and Trace for Pharmaceutical Exports Cost of Implementation : Implementing a robust Track and Trace system involves substantial investment in technology, training, and integration with global standards. Small and medium-sized manufacturers may face challenges in meeting these requirements. Compliance with Multiple Regulations : Exporters must navigate varying regulatory standards across different countries. This requires constant mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitoring and updating of processes to stay compliant with each market s rules. Integration with Global Systems : Ensuring that the Track and Trace system is interoperable with the tracking systems of importing countries can be challenging and may require collaboration with third-party technology providers. 6. Future of Track and Trace in Pharmaceutical Exports Growing Global Demand : The global push for anti-counterfeiting measures and patient safety will continue to drive the adoption of Track and Trace systems worldwide. Artificial Intelligence (AI) and Block chain will likely play a larger role in enhancing the security and efficiency of Track and Trace, providing deeper insights into supply chain operations. As countries adopt stricter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anti-counterfeit regulations , pharmaceutical exporters from India will need to ensure that their systems are compatible with the latest standards and continuously evolve to meet market requirements. Conclusion The Track and Trace system is a critical element for ensuring the safety, authenticity, and integrity of pharmaceutical exports. With increasing demand for accountability in the pharmaceutical supply chain, Indian exporters must adhere to both domestic and international regulations. While there are challenges in implementing such systems, the benefits such as combating counterfeit drugs, ensuring compliance, and protecting consumers are substantial. The future of pharmaceutical exports will likely see greater adoption of advanced tec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hnologies like AI and block chain, ensuring that the industry continues to evolve in line with global trends and regulations. - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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