Govt grants full customs duty exemption on imported drugs for all rare diseases

In order 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. Drugs/medicines generally attract basic customs duty of 10 per cent, while some categories of lifesaving drugs/vaccines attract concessional rate of 5 per cent or nil duty.

While exemptions have already been provided to specified drugs for treatment of Spinal Muscular Atrophy or Duchenne Muscular Dystrophy, the notification stated that the government has been receiving many representations seeking customs duty relief for drugs and medicines used in treatment of other rare diseases. 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 Rs10 lakh to more than Rs1 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. 

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

Normally, medicines attract basic customs duty of 10 percent, while some categories of lifesaving drugs or vaccines attract a concessional rate of 5 percent or are completely exempt from duties.