Govt exempts import duty on drugs, food for special medical purposes

The Central Government has exempted all drugs and Food for Special Medical Purposes imported for personal use for treatment of all Rare Diseases from the basic customs duty. The exempted drugs and Food are listed under the National Policy for Rare Diseases 2021. Finance Ministry said, to avail this exemption, the individual importer has to produce a certificate from Central or State Director Health Services or the Civil Surgeon of the district. The Ministry said, government has fully exempted Pembrolizumab (Keytruda) used in treatment of various cancers from basic customs duty. The medicines generally attract basic customs duty of ten per cent, while some categories of lifesaving drugs and vaccines attract concessional rate of five per cent or Nil. The Ministry said, government has been receiving many representations seeking customs duty relief for drugs and medicines used in treatment of rare diseases.

Food for Special Medical Purposes is a food formulation intended to provide nutritional support to persons who suffer from a specific disease, disorder or a medical condition, as a part of their dietary management. While exemptions have already been provided to specified drugs for treatment of Spinal Muscular Atrophy or Duchenne Muscular Dystrophy, the government has been receiving many representations seeking customs duty relief for drugs and medicines used in treatment of other rare diseases.The ministry said it is estimated that for a child weighing 10 kg, the annual cost of treatment for some rare diseases, may vary from Rs 10 lakh to more than Rs 1 crore per year with treatment being lifelong and drug dose and cost, increasing with age and weight.“This exemption will result in substantial cost savings and provide much needed relief to the patients,” the ministry said.