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 the treatment of all rare diseases listed under the National Policy for Rare Diseases 2021 through a general exemption notification.
According to a release by the Ministry of Finance, “In order to avail this exemption, the individual importer has to produce a certificate from the Central or State Director Health Services or District Medical Officer/Civil Surgeon of the district."
As of now, these drugs attract basic Customs duty of 10 per cent, while some categories of lifesaving drugs/vaccines attract a concessional rate of 5 per cent or nil.
"While exemptions have already been provided to specified drugs for the 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 the treatment of other rare diseases,” the ministry said.
This comes after the Union Finance Minister approved an exemption in Customs duty of Rs 7 lakh on an immunotherapy medicine for a rare kind of cancer for a girl named Niharika after Congress MP Shashi Tharoor wrote to the finance minister seeking an exemption.
The finance ministry said that 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.
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“This exemption will result in substantial cost savings and provide much-needed relief to the patients,” the ministry said.
The government has also fully exempted Pembrolizumab (Keytruda) used in the treatment of various cancers from basic customs duty.