Government waives import duty on vaccines, oxygen and related gear

NEW DELHI: In a bid to boost medical oxygen availability in the country amid a severe shortage across several states, including the national capital, the union government decided to exempt basics customs duty on import of COVID-19 vaccines, and the basic customs duty and health cess on import of medical grade oxygen and other equipment related to providing oxygen to patients, for a period of three months till July 31 with immediate effect. The decision was taken in a meeting chaired by Prime Minister Narendra Modi to review steps taken to boost oxygen availability in the country. According to an official statement, the move will boost availability of these items and make them cheaper.

Modi also directed the revenue department to ensure seamless and quick custom clearance of such equipment. “The PM emphasised that there was an immediate need to augment the supply of medical grade oxygen as well as equipment required for patient care both at home and in hospitals. The PM stressed that all ministries and departments need to work in synergyto increase availability of oxygen and medical supplies,” the statement said.

While basic customs duty on Remdesivir and its active pharmaceutical ingredients has been waived, it was suggested that import of equipment related to providing oxygen to patients needs to be expedited. Apart from medical grade oxygen, the customs duty has been exemption has been extended to oxygen cylinders including cryogenic cylinders and tanks, oxygen concentrators, oxygen cannisters, filling systems, storage tanks, ventilators, compressors, along with other similar items.

The statement noted that the government has taken a lot of measures in the last few days to improve supply of oxygen and medical supplies. “IAF planes are bringing in cryogenic oxygen tanks from Singapore. IAF is also transporting oxygen tanks in the country to reduce travel times,” the Finance Ministry said.

ITEMS THAT WILL BENEFIT FROM THE DECISION
Medical grade oxygen, oxygen concentrator along with flow meter, oxygen plants, cryogenic oxygen air separation units (ASUs) producing liquid/ gaseous oxygen, oxygen tanks, filling systems, among others.