The minister also said that Basic Customs Duty on X-ray tubes and flat panel detectors will be reduced from 15 to 5 percent till March, 2025
Published Jul 23, 2024 | 5:46 PM ⚊ Updated Nov 26, 2024 | 2:40 PM
Representative image of a medical equipment
The Union Finance Minister, Nirmala Sitharaman, on Tuesday, 23 July, proposed changes in the Basic Customs Duty (BCD) on three types of medical equipment used for different purposes during surgery.
She proposed to eliminate the customs duties for all types of polyethylene used in the manufacture of orthopedic implants, as well as for special-grade stainless steel, titanium alloys, cobalt-chrome alloys, and all types of polyethylene used in the manufacture of other prostheses.
The minister also announced that the basic customs duty on X-ray tubes and flat panel detectors (including scintillators) for use in the manufacture of medical, surgical, dental, or veterinary X-ray machines will be reduced from 15 percent to 5 percent until 31 March 2025.
The duty will then be increased to 7.5 percent from 1 April 2025 to 31 March 2026, and further increased to 10 percent from 1 April 2026.
“My proposals for customs duties aim to support domestic manufacturing, deepen local value addition, promote export competitiveness, and simplify taxation while keeping the interests of the general public and consumers paramount,” Sitharaman said.
Polyethylene:
Polyethylene is a type of plastic. It’s a material that you can find in everyday items like plastic bags, bottles, and toys. In the context of orthopaedic implants, which are devices placed inside the body to replace or support a bone or joint, polyethylene is used because it is smooth and can withstand a lot of wear and tear.
For example, in a hip replacement, a part of the implant might be made from polyethylene. It acts as a cushion and helps the artificial joint move smoothly, mimicking the natural movement of our joints. Besides orthopaedic implants, polyethylene is used in various other artificial body parts for its smooth and durable qualities. For example, in prosthetic limbs, it can be used to make sockets that fit comfortably against the body or in joints to allow smooth movement.
Special Grade Stainless Steel, Titanium Alloys, Cobalt-Chrome Alloys, and all types of Polyethylene:
Special Grade Stainless Steel is a high-quality, rust-resistant metal that is stronger and more durable than regular steel. It is used in making parts like screws, plates, and rods that help hold bones together, or in making parts of artificial limbs because it is strong and doesn’t corrode inside the body.
Titanium Alloys is a metal that is very strong but also light. When mixed with other metals, it becomes even stronger. Titanium alloys are used in making various artificial body parts like joint replacements (hips, knees) and dental implants because they are strong, lightweight, and compatible with the human body, meaning the body doesn’t reject them easily.
Cobalt-Chrome Alloys is a mixture of cobalt and chromium, making it a very hard and durable material. It is often used for making parts that need to be extremely tough and resistant to wear, like the ball part of a hip replacement or knee replacement parts.
Why these materials?
X-Ray tubes:
An X-ray tube is a device that produces X-rays. It’s a crucial part of any X-ray machine. X-ray tubes are used in medical, surgical, dental, and veterinary X-ray machines to create X-ray beams that can pass through the body and create images of bones and other structures. This helps doctors diagnose fractures, infections, and other medical conditions.
Flat Panel Detectors (including Scintillators): Flat Panel Detectors are advanced digital detectors used to capture X-ray images. When X-rays pass through the body and hit the flat panel detector, the detector converts these X-rays into digital signals, which are then processed to create a digital image on a computer screen.
Scintillators: Scintillators are materials that emit light when they absorb X-rays. In indirect flat panel detectors, the scintillator layer is crucial. When X-rays hit the scintillator, it lights up. This light is then captured and converted into a digital image. Common scintillator materials include Cesium Iodide (CsI) and Gadolinium Oxysulfide (Gd2O2S).
Fortis Hospital Principle Director and Chief of Neurology Praveen Gupta said the exemption of custom duties on certain medical technologies such as x-ray tubes and flat panel detectors is a significant move to strengthen domestic capabilities in the healthcare sector.
“Though these measures are far less than expected, they will make advanced cancer treatments more affordable and accessible, addressing a critical need given the high cost of such treatments,” he added.
The Association of Indian Medical Device Industry (AiMeD) Forum Coordinator, Rajiv Nath said: “We are thankful to the GoI for the reduction in duty on the import of components of X-ray equipment until these get to be produced in India. This enables continuity in investment in efforts to become a manufacturing hub of x-ray equipment globally.”
Mr Nath said that in a representation to Arunish Chawla, Secretary, Department of Pharmacy (DoP), dated January 19, 2024, AiMeD had raised the issue of increase in custom duty and removal of benefits for import of x-ray tube and flat panel detector under the Phased Manufacturing Programme (PMP).
Since there are no domestic manufacturers available for these two critical components, the relief from the government is appreciable, added Mr Nath.
“We at AiMeD had, however, have been hoping that the recommendations of Department of Pharmacy (DoP), which were backed by DGHS, would have helped on nominal duty increase on at least those medical devices that India had substantial manufacturing capacity as demonstrated during Covid-19 pandemic times,” said a despondent but hopeful Rajiv Nath.
“The imports of medical devices are consistently over Rs 61,000 crore for the last three years and regretfully this year have increased by 13 per cent to ₹69,000 crore,” said Nath, while flagging the issue of prevailing inverted duty structure.
To address this, AiMeD has proposed the implementation of a 5 percent health cess on custom duty for the remaining medical devices as this was earlier applied to a limonite’s medical devices and this health cess was used to fund resources for Ayushman Bharat.
(Edited by Neena)
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