Uniform basic duty of 5% and cvd of 4% on import of medical equipment

A uniform concessional basic duty of 5%, CVD of 4% with full exemption from special additional duty on all medial equipment are proposed doing away with a very complex import duty regime. The Finance Minister, Shri Pranab Mukherjee while presenting the Union Budget in Lok Sabha today said that multiple rates coupled with descriptions not aligned with tariff lines result in disputes and at times prevent state-of-art equipment from getting the benefit of exemption.

The Finance Minister also announced a concessional basic duty of 5% on parts and accessories needed for the manufacture of medical equipment, instruments and appliances. These have been exempted from CVD and additional duty.

Full exemption currently available to medical equipment and devices such as assistive devices rehabilitation aids etc., will continue during 2010-11. The concession available to Government hospitals or hospitals set up under a statute is retained.

Responding to the representations of manufacturers of orthopaedic implants, the Finance Minister announced exemption on specified inputs for the manufacturer of these implants from the import duty.

Source : Equity Bulls

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