CBN Tightens Export Rules for Codeine Phosphate Preparations

Dated: 19.08.2025

In a significant move to curb the misuse and diversion of codeine phosphate preparations into illicit channels, the Narcotics Commissioner has announced new regulatory measures with immediate effect. ​ These measures aim to ensure strict compliance with the Quota Allocation Certificate (QAC) conditions and maintain the integrity of the export process. ​

Key Directives Issued:

  1. Ban on Merchant Exporters Without QAC ​ The export of codeine phosphate preparations through merchant exporters is now prohibited unless they obtain a Quota Allocation Certificate (QAC) from the Central Bureau of Narcotics. ​ This step ensures that all exporters are held accountable and operate within the regulatory framework. ​
  2. Mandatory QAC for Merchant Exporters ​ Merchant exporters who wish to export codeine phosphate preparations must now mandatorily secure a QAC, even though a possession license is not required under the NDPS Act. ​ Additionally, exporters must submit export details within three months of the actual export date for any previously issued QAC. ​
  3. Limit on Quota Allocation ​ To prevent excessive allocation and potential misuse, the maximum quota allocation for codeine phosphate preparations per application is capped at 200 kg. ​ If an export order requires a larger quantity, exporters must submit a separate application along with the export details of the previously issued QAC. ​

Why These Measures Are Necessary ​

The decision comes in response to observed non-compliance by certain manufacturers and reports of diversion of codeine phosphate preparations into illicit channels. ​ By tightening the regulatory framework, the Narcotics Commissioner aims to prevent misuse while ensuring the availability of codeine phosphate for legitimate medical and pharmaceutical purposes. ​

Implications for Exporters

Exporters must now adhere to stricter guidelines, ensuring transparency and accountability in the export process. ​ The new measures emphasize the importance of compliance with the QAC conditions and timely submission of export details. ​

Conclusion

These regulatory measures reflect the government’s commitment to combating the misuse of controlled substances while supporting legitimate trade. ​ Exporters are urged to familiarize themselves with the new directives and ensure full compliance to avoid penalties or restrictions.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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