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

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.