No custom duty on import of drugs, food for rare diseases, announces government

The Union government announced full exemption from basic customs duty on all drugs and food for special medical purposes imported for personal use for the treatment of all Rare Diseases

The Union government, on March 30, announced full exemption from basic customs duty on all drugs and food for special medical purposes imported for personal use for the treatment of all Rare Diseases listed under the National Policy for Rare Diseases 2021 through a general exemption notification.

This comes after Union Finance Minister, on the recommendation of Congress parliamentarian Shashi Tharoor, allowed an exemption of customs duty worth Rs 7 lakh on an immunotherapy drug for a rare form of a cancer drug for a little girl, named Niharika.

In order to avail of this exemption, said the government, the individual importer has to produce a certificate from the central or state director health services or district medical officer or civil surgeon of the district.

As of now, drugs and medicines generally attract basic customs duty of 10 percent, while some categories of lifesaving drugs/vaccines attract a concessional rate of 5 percent or nil.

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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, said a statement by the Union finance ministry.

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

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, said the ministry.

The Government has also fully exempted Pembrolizumab (Keytruda) used in the treatment of various cancers from basic customs duty.