The Finance Ministry announced an exemption on basic customs duty on imports of specified API/ excipients for Amphotericin B and raw materials for manufacturing COVID test kits, till a specified period.
The government has granted a basic customs duty exemption on the import of raw materials for manufacturing COVID-19 test kits till September 30, and the import of certain active pharmaceutical ingredients (APIs) used to manufacture Amphotericin-B, used in the treatment of Mucormycosis, till August 31, a notification issued by the Customs Department on Monday said.
In addition, imports of high purity Cholesterol and Egg Lecithin, critical ingredients used in the pharmaceutical sector, have also been exempted from basic customs duty till August 31.
Earlier, the government had given similar customs duty exemption on a host of items used in covid prevention and treatment including diagnostic (marker) kits and blood gas reagents. It had also temporarily exempted customs duty on covid-19 vaccines, oxygen, related gear, and oxygen transportation equipment to help reduce the cost of these items and improve supplies. Last month, GST Council slashed the tax rates on 18 classes of products including the anti-fungal drug Amphotericin B and Tocilizumab used in treating inflammatory and autoimmune conditions till the end of September.
Import duty exemption on the seven items is in the public interest, CBIC said. Importers have to follow norms covering shipments eligible for concessional duty.
Rajat Bose, Partner, Shardul Amarchand Mangaldas & Co, said: ”In line with the make in India policy of the government, customs duty exemptions have been extended to certain raw materials required for the manufacture of Covid Test kits and drugs for fighting the virus. This is likely to further bring down the cost of such items in India making it more affordable for the common man.”
Further, Mahesh Jaising, Partner, Deloitte India, said with the Government preparing for the 3rd wave of COVID which experts suggest to be around the corner, it is not surprising to see that the Government has proactively exempted the customs duty on raw materials for COVID testing kits. “COVID kits attract 5% GST rate (till 30.09.2021), this exemption will further reduce the cost for the manufacturers and therefore, the general public. This is aligned with the Government’s support for “make in India”. This is also aligned to the larger rate reduction/ exemptions that the Government announced in the past few months specifically for COVID-related drugs and equipment,” he added.
