Lok Sabha Question No. 643 (UNSTARRED), answered on 2016-02-26
Subject: Custom Duty on Life Saving Drugs
Ministry: FINANCE
Asked by: VINAYAK BHAURAO RAUT, KAMAL NATH, SHRIKANT EKNATH SHINDE, ANANDRAO  ADSUL, K. C. VENUGOPAL, Shrirang Appa Barne, JITENDRA CHAUDHURY, JYOTIRADITYA MADHAVRAO SCINDIA, RAJAN BABURAO  VICHARE, NAGENDRA KUMAR PRADHAN, RAHUL RAMESH SHEWALE, R. GOPALAKRISHNAN, SHIVAJI ADHALRAO PATIL, DHARMENDRA YADAV, ANTO  ANTONY

- 643.

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF REVENUE

## LOK SABHA

## UNSTARRED QUESTIONNQ.643

## IQ BE ANSWERED ON FRIDAY THE FEBRUARY 2016 PHALGUNA Z,1937 (SAKA 26th

## CUSTOM DUTY ONLIEE SAVING DRUGS

- SHRI VINAYAK BHAURAO RAUT:

SHRI KAMAL NATH:

DR SHRIKANT EKNATH SHINDE:

SHRI ANANDRAO ADSUL:

SHRI KC: VENUGOPAL:

SHRI SHRIRANG APPA BARNE:

SHRI JITENDRA CHAUDHURY:

SHRI JYOTIRADITYA M: SCINDIA:

SHRI RAJAN VICHARE:

SHRI NAGENDRA KUMAR PRADHAN:

SHRI RAHUL SHEWALE:

SHRI R GOPALAKRISHNAN:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI DHARMENDRA YADAV:

SHRI ANTO ANTONY:

Will the Minister of FINANCE be pleased to state:

- withdrawn exemption from custom saving including those of Cancer, HIV and Haemophilia etc. without   consulting Ministry of Health and Family Welfare and other stakeholders; drugs
- (b) if so, the details thereof and the reasons therefor with its impact on common man Economic Zones of the
- and the drugs being indigenously manufactured in the   Special country; along
- (c) whether this withdrawal of exemption is also likely to affect the Government's aim of
- making healthcare affordable and accessible to patients in India; and

thereof and if not; the reasons therefor?

## ANSWER

## MNISTER OF STATE IN THE MNISTRY OF FINANCE (SHRI JAYANT SINHA)

La) & bJ: Representations were received from domestic industry stating; inter alia, that the exemption concessional customs duties on drugs including life saving drugs deters domestic manufacture of these   lifesaving   drugs:  Accordingly, in consultation with the stakeholders including Ministry of Health and Family Welfare and the Department of Pharmaceuticals, (a): Representations were received from domestic  industry  stating, inter that the   exemption concessional customs duties on drugs including life saving drugs deters domestic manufacture of these lifesaving drugs. Accordingly; in consultation with the stakeholders including Ministry of Health and Family Welfare and the Department of Pharmaceuticals, exemption concessional customs duties on 76 specified drugs was withdrawn, vide notification of the Government of India Ministry of Finance (Department of Revenue) No: 6/2016Customs, dated the 28th February; 2016 [G.S.R. No. 124(E) dated 28th January, 2016], so as to eliminate the disadvantage to the domestic manufacturers of such drugs. Following the withdrawal of exemptions concessions, these 76   imported drugs (including those cleared from SEZ to domestic tariff area) would attract applicable alia,

(cLand IdE Subsequent to the withdrawal of the exemption concessional customs duties, a Committee comprising of representatives of Ministry of Health & Family Welfare, Department of Pharmaceuticals, Director General of Health Services, Department of Revenue, National Pharmaceutical Pricing Authority, Central Drugs Standards Control Organization, National AIDS Control Programme and experts from All India Institute of Medical Sciences, Safdarjung Hospital and Ram Manohar Lohia Hospital, was constituted in the Ministry of Health and Family Welfare to assess the impact of withdrawal of customs duties exemption concession on the 76 drugs: Keeping in view on the  prices and availability of these drugs, Ministry of Health and Family Welfare recommended to restore exemption concession of customs duties on three drugs, namely, Octreotide; Somatropin; and Anti-Haemophilic factor concentrate IX Accordingly, the exemption concessional customs duties has been restored on these 3 drugs vide notification of the Government of India Ministry of Finance (Department of Revenue) No. 10/2016Customs; dated the 17th February, 2016 [G.SR. No. 177(E) dated 17th February, 2016].