Centre exempt import duty on drugs used for treatment of rare diseases

The central government has exempted basic customs duty on all drugs and food used for special medical purposes and are imported for personal use for the treatment of rare diseases stated a government press release.

The import duty waiver will be on drugs used for the treatment of rare diseases that are listed under National Diseases 2021 and will come into effect from April 1.

Besides, the centre has exempted Pembrolizumab (Keytruda), used in the treatment of various cancers, from basic customs duty.

Drugs or special foods generally attract basic customs duty of 10 per cent, while some categories of life-saving drugs or vaccines attract a concessional rate of 5 per cent or nil.

A statement by the finance ministry said, "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."

Food for Special Medical Purposes is a food formulation intended to provide nutritional support to persons who suffer from a specific disease, disorder, or medical condition, as a part of their dietary management.

The individual importer has to produce a certificate from the Central or State Director of Health Services or the District Medical Officer/Civil Surgeon of the district, in order to avail of this exemption.

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An official government statement said Thursday said, "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."

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

The ministry in its notification said that 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.

"The exemption will result in substantial cost savings and provide much-needed relief to the patients," the ministry added.

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