EU to Amend Custom Regulations on India's Demand

European Union in December 2010 finally agreed to India's demand to amend its Customs regulations with an objective to stop confiscation of drugs export to African and Latin American countries. Unless the amendment is brought about, the European Commission has promised that no further seizures of Indian drugs would take place at any European port. The Indian drug makers can breathe easy now, thanks to EU's stand.

India's pharmaceutical industry exports cheap generics, which are copies of drugs that no longer enjoy patent protection to many countries in Africa and Latin America.

Some of the generics exported by India continue to enjoy patent protection in the European Union. The The consignment of those generics on the way to other countries through European ports were confiscated for violating their intellectual property rights. The seizing of the Indian consignments had taken place following complaints by pharmaceutical giants holding patents to the medicines in Europe including Sanofi-Aventis SA , Novartis AG and Eli Lilly & Co. 17 cases of seizures of consignments were reported in the Netherlands, Germany and France over the last two years. The seizures had endangered India’s Rs 40000 crore generics export industry.

India had protested strongly against the confiscations as the generics were off patent in India and were not meant for sale in the EU. India even took the issue to the World Trade Organization (WTO), arguing that the seizures amounted to violation of the international intellectual property agreement, Trips.