BIG govt decision: Customs duty exempted on drugs, food for special medical purposes imported for personal use

The Central Government has given full exemption from basic customs duty on all drugs and food for special medical purposes imported for personal use for treatment of all Rare Diseases listed under the National Policy for Rare Diseases 2021 through a general exemption notification.

In a big decision, the government has exempted basic customs duty on all drugs and food for special medical purposes imported for personal use for treatment of rare diseases. The import duty waiver will come into effect from April 1.

Additionally, Pembrolizumab (Keytruda), a drug used to treat a number of cancers, is not subject to fundamental import duties. Drugs and medications typically have a base customs tax of 10%, though some groups of life-saving medications and vaccines have a concessionary rate of 5% or NIL.

The government notice read: “The Central Government has given full exemption from basic customs duty on all drugs and Food for Special Medical Purposes imported for personal use for treatment of all Rare Diseases listed under the National Policy for Rare Diseases 2021."

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.

The individual shipper must present a document from the district's medical officer or civil surgeon, or the central or state director of health services, in order to be eligible for this exemption.

While certain drugs used to treat Duchenne muscular dystrophy or Spinal Muscular Atrophy have already received exemptions, the government has been getting numerous requests for customs tax relief for drugs and medications used to treat other rare illnesses.

Drugs or Special Foods required for the treatment of these diseases are expensive and need to be imported.

“This exemption will result in substantial cost savings and provide much needed relief to the patients,” the ministry said.

(With PTI Inputs)