Government Amends NDPS Rules to Modernize Import Certificate Requirements

The Ministry of Finance, Department of Revenue, issued a notification on July 16, 2021, introducing the Narcotic Drugs and Psychotropic Substances (Second Amendment) Rules, 2021. This delegated legislation, published in the Official Gazette on the same date, amends the existing Narcotic Drugs and Psychotropic Substances Rules, 1985, which govern the regulation of controlled substances in India. The amendment specifically modifies the provisions concerning import certificates for such substances, aiming to streamline the process and adapt to contemporary digital practices.

The core of the amendment lies in the substitution of clause (b) of sub-rule (2) of rule 58 of the principal rules. This change introduces flexibility in the format of import certificates and addresses scenarios where a substance may not be controlled in the importing country. The legislation provided: “(b) the import certificate in original or in electronically generated format, issued by the Government of the importing country certifying the official approval of the concerned Government; Provided that where the import certificate in electronically generated format issued by the Government of importing country, the export authorisation shall be issued, after verification of such electronic format through bar code or through official website or through email of the Government of importing country; Provided further that in case the substance is not controlled in the importing country, the exporter shall submit a certificate or letter, in lieu of such import certificate, confirming, no objection to the import or that the substance is not controlled in importing country.” This means that an import certificate can now be presented either in its original physical form or as an electronically generated document. For electronic certificates, the rules mandate verification through methods such as a barcode, official website, or email from the importing country's government. Furthermore, a significant addition is the provision for situations where a substance, though controlled in India, is not regulated in the destination country. In such cases, the exporter is permitted to submit a certificate or letter confirming either no objection to the import or that the substance is not controlled in the importing country, thereby replacing the need for a formal import certificate.

The legislative intent behind these amendments is to modernize the regulatory framework for the international trade of narcotic drugs and psychotropic substances, ensuring both control and efficiency. The earlier legal position primarily necessitated original physical import certificates, which could pose logistical challenges in an increasingly digital global trade environment. The amendment addresses these statutory gaps by formally recognizing electronically generated documents, thereby facilitating smoother international transactions for legitimate purposes. This move is expected to benefit exporters and importers by reducing bureaucratic hurdles while maintaining stringent oversight on the movement of controlled substances. The new rules also provide a practical solution for instances where regulatory classifications differ between India and importing nations, simplifying compliance for exporters. The Central Government exercised its powers conferred by section 9, read with section 76 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (the principal Act governing controlled substances), to enact these changes, which came into force upon their publication in the Official Gazette on July 16, 2021.

Keywords: Narcotic Drugs, Psychotropic Substances, NDPS Rules, Import Certificate, Electronic Format, Export Authorisation, Ministry of Finance, India, Amendment Geo Tags: India, Delhi District: Not Applicable