Pharmexcil urges companies to adopt NCB voluntary code to prevent chemical diversion into illegal drug production

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has urged its member pharma companies to implement the Voluntary Code of Conduct (VCC) introduced by the Narcotics Control Bureau (NCB) to prevent the diversion of precursor chemicals from legitimate supply chains into the illicit manufacture of synthetic drugs.

The VCC is a national initiative designed as a guidance framework to address the critical issue of precursor chemicals being diverted from legal supply chains to the illicit manufacture of synthetic drugs. It is also aimed at strengthening collaboration between law enforcement agencies and the chemical and pharmaceutical industries to curb the misuse of precursor chemicals.

According to Pharmexcil Director General (DG) Raja Bhanu, the VCC serves as a guidance framework to establish stronger safeguards against the diversion of chemicals used in the production of synthetic narcotics.

“The NCB emphasizes that enforcement agencies alone cannot win the fight against synthetic drugs. Stopping chemical misuse requires strong cooperation between enforcement agencies and the pharmaceutical industry,” Pharmexcil DG further stated.

The VCC focuses on three key objectives of promoting responsible chemical stewardship, strengthening supply-chain integrity across manufacturers, importers, exporters, distributors and transporters, and enabling early detection and reporting of suspicious transactions before chemicals reach illicit laboratories.

The NCB has highlighted that businesses are often the first to detect irregularities as criminal networks continuously seek new substances to evade regulatory controls. The bureau has called on companies to remain vigilant for unusually large or inconsistent orders, abnormal procurement patterns, requests for deliveries to locations different from registered business addresses, and attempts to conceal end-use information or bypass standard documentation through urgent or unconventional payment arrangements.

Pharmexcil officials also noted that there have been recent instances where firms and individuals faced global sanctions and criminal charges after their chemicals were diverted to unauthorized users, underlining the growing need for industry vigilance.

There have been recent instances where the firms and individuals have faced global sanctions and criminal charges because their chemicals were diverted to unauthorized users.

The NCB has called upon all stakeholders to incorporate VCC guidelines into standard operating procedures (SOPs), exercise high levels of vigilance during customer verification, especially when dealing with intermediaries or brokers, actively report any suspicious transactions or indicators of possible diversion to the relevant authorities immediately.

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