The Indian government has provided a major relief to individuals undergoing treatment for rare diseases by announcing a full exemption on basic Customs Duty on the import of food and drugs meant for special medical purposes.
This exemption applies to all rare diseases listed under the National Policy for Rare Diseases 2021, and it covers the import of food and medicines. Usually, drugs attract a basic customs duty of 10%, while certain categories of lifesaving drugs/vaccines attract a concessional rate of 5% or nil. However, the government has released a general exemption notification that provides a full exemption from basic Customs Duty.
This decision was made after the government received multiple requests seeking Customs Duty relief for drugs and medicines used in the treatment of rare diseases. Previously, the government had provided exemptions to specified drugs for the treatment of Spinal Muscular Atrophy(SMA) or Duchenne Muscular Atrophy. The drug ‘Zolgensma,’ which is imported for the treatment of SMA, is considered the world’s most expensive drug and costs around Rs.17 crore or more than two million dollars.
In a statement, the government explained that drugs or special foods required for the treatment of rare diseases are expensive and need to be imported. For instance, 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. The government added that the Customs Duty exemption will result in substantial cost savings and provide much-needed relief to the patients.
The exemption can be availed by individuals who import the required drugs or food for the treatment of rare diseases by providing a certificate from the Central or State Director Health Services or District Medical Officer/Civil surgeon of the district. Additionally, the drug Pembrolixumab (Keytruda), which is used in the treatment of various cancers, has also been fully exempted from basic Customs Duty.
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