'Life-saving drug, oxygen kit imports clearance top priority'

New Delhi: The finance ministry has directed Customs officers to clear all import consignments, including life-saving drugs and oxygen equipment, used in COVID treatment on the highest priority amid a surge in infections across the country.

Central Board of Indirect Taxes and Customs (CBIC) said the decision is aimed at ensuring that all such materials and equipment reach the intended beneficiaries within the shortest possible time.

"CBIC has given directions to all its field formations to clear these consignments on the highest priority," the board said in a tweet.

Also, nodal officer Gaurav Masaldan has been appointed in the Revenue Department for issues related to customs clearance for oxygen and related items.

"A nodal officer is nominated by @cbic_india for facilitation in case of any difficulty at ports on customs clearance specifically on oxygen & related items, Finance Minister Nirmala Sitharaman tweeted.

Considering the scourge of COVID-19 and the surge of cases in the country, it is imperative that the import of critical raw materials, life-saving drugs etc reach the intended users/beneficiaries in time for an effective fight against the pandemic, CBIC said.

"Hence, it is requested that all customs formations may be sensitised of the urgency of this matter and may be directed to give high priority for customs clearance of import of goods relating to COVID-19 pandemic, including oxygen related equipment etc," a communication by CBIC to its customs officers said.

Commerce and Industry Minister Piyush Goyal also said in a tweet that in another step towards fighting COVID-19, customs will expedite clearances for import consignments relating to the pandemic to ensure critical equipment and medicine can reach on time.

The government has already waived all customs duty on imported Remdesivir injections and the drug's active pharmaceutical ingredients (API) to boost supplies.

Meanwhile, the government on Saturday exempted basic customs duty on import of COVID vaccine, medical-grade oxygen and related equipment to boost domestic availability and make them cheaper amid rising infections across the country.

The decision to exempt customs duty was taken at a meeting chaired by Prime Minister Narendra Modi to boost oxygen availability in the country.

"In order to augment their production and availability and to meet the rising demand, it was decided to grant full exemption from Basic Customs Duty and health cess on import of the following items related to oxygen and oxygen related equipment for a period of three months with immediate effect," an official statement said.

It was also decided that basic customs duty on import of COVID vaccines be also exempted with immediate effect for a period of three months, it added.

The 16 oxygen and related equipment on which duty has been waived include oxygen concentrator along with flow meter, regulator, connectors and tubing, oxygen canister, filling systems, storage tanks, cylinders, including cryogenic cylinders and tank.

Ventilators (capable of functioning as high-flow devices) with nasal canula; helmets for use with non-invasive ventilation, non-invasive ventilation oronasal and nasal masks for ICU ventilators too have been exempted from the import duty and health cess.

"This will boost the availability of these items as well as make them cheaper. The PM directed the Revenue Department to ensure seamless and quick customs clearance of such equipment," the statement said.

The government presently levies 10 per cent customs or import duty on vaccines coming from overseas.

The exemption from import duty would help keep low the cost of overseas vaccines that are being eyed to supplement domestically made shots ahead of opening COVID-19 vaccination to all citizens over 18 years of age.

Import duty would have made the imported vaccines costlier than the ones made by Serum Institute of India (SII) and Bharat Biotech.

While Russia's Sputnik V vaccines are due to arrive this month or by next month, manufacturers like Moderna and Johnson and Johnson have been urged to seek emergency use approval in India.

Earlier, the government waived import duty on Remdesivir injection, and also banned its export.