Govt waives Customs Duty on Imported Special Medical Food and Medicine

MySandesh

As per a government press release, the all drugs and food for special medical purposes imported for personal use for treatment of rare diseases have been exempted from the custom duty.

It will be from April 1 that the import duty waiver shall come into effect.

Exemption on Custom Duty of Personal Special Medical Purposes Drugs & Food

In addition to this, Pembrolizumab (Keytruda), used in treatment of various cancers has been exempted by the government.

While some categories of life saving drugs/vaccines attract a concessional rate of 5 per cent or Nil, there is a custom duty of 10% for drugs/medicines.

As per the statement of finance ministry “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”.

What is Food for Special Medical Purposes?

It 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.

To avail this exemption, the individual importer has to produce a certificate from Central or State Director Health Services or District Medical Officer/Civil Surgeon of the district.

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.

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

It has been estimated by the ministry 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.

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

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