Indian govt grants full Customs Duty exemption on import of medicines & food for treating rare diseases

In a major relief for those in India who are undergoing treatment for rare diseases, the Indian government has announced a full exemption on basic Customs Duty on the import of food and drugs meant for special medical purposes. This applies to food and medicines being imported for the treatment of all rare diseases listed under the National Policy for Rare Diseases 2021. Generally, drugs attract basic customs duty of 10 per cent, while certain categories of lifesaving drugs/vaccines attract a concessional rate of fiveper centor nil. Announcing the full exemption from basic Customs Duty, the government released a general exemption notification.

This comes after the government had been receiving multiple requests seeking Customs Duty relief for drugs and medicines used in the treatment of rare diseases. Earlier, the government had provided exemptions to specified drugs for the treatment of Spinal Muscular Atrophy(SMA) or Duchenne Muscular Atrophy. "Zolgensma", the drug imported for treatment of SMA costs around Rs.17 crore or more than twomillion dollars, thus earning it the title of being the world's most expensive drug.

"Drugs or Special Foods required for the treatment of these (rare) diseases are expensive and need to be imported. It is estimated that for a child weighing 10kg, the annual cost of treatment for some rare diseases may vary from Rs10 lakh to more than Rs one crore per year with treatment being lifelong and drug dose and cost, increasing with age and weight" the Government said in a statement. It was added that the Customs Duty exemption will result in substantial cost savings and provide much-needed relief to the patients.Pembrolixumab (Keytruda), a drug used in the treatment of various cancers, has also been fully exempted from basic Customs Duty.

As per an official statement, such an exemption can be availed by the individual imported by providing a certificate from the Central or State Director Health Services or District Medical Officer/Civil surgeon of the district.

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