PM chairs a high-level meeting on measures to increase supply of oxygen & oxygen related equipment

Basic customs duty & health cess to be waived off on oxygen & oxygen related equipment

Covid related vaccines to be exempted from basic customs duty

These measures will boost availability of these items as well as make them cheaper

The Prime Minister chaired a meeting to review steps taken to boost oxygen availability in the country. The PM emphasized 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. PM stressed that all ministries and departments need to work in synergy to increase availability of oxygen and medical supplies.

PM was briefed that basic customs duty was exempted on Remdesivir and its API recently. It was suggested that import of equipments related to providing oxygen to patients needs to be expedited.  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:

1. Medical grade Oxygen
2. Oxygen concentrator along with flow meter, regulator, connectors and tubing
3. Vacuum Pressure Swing Absorption (VPSA) and Pressure Swing Absorption (PSA) oxygen plants, Cryogenic Oxygen Air Separation Units (ASUs) producing liquid/ gaseous oxygen
4. Oxygen Cannister
5. Oxygen Filling Systems
6. Oxygen Storage tanks, Oxygen cylinders including cryogenic cylinders and tanks
7. Oxygen Generators
8. ISO Containers for Shipping Oxygen
9. Cryogenic Road transport tanks for Oxygen
10. Parts of the above to be used for the manufacture of equipment for production, transportation, distribution or storage of Oxygen
11. Any other device from which Oxygen can be generated
12. Ventilators (capable of functioning as high-flow devices) with nasal canula; Compressors including all accessories and tubing; humidifiers and Viral filters
13. High flow nasal canula device with all attachments
14. Helmets for use with non-invasive ventilation
15. Non-invasive ventilation oronasal masks for ICU ventilators
16. Non-invasive ventilation nasal masks for ICU ventilators

Apart from the above, it was also decided that Basic Customs Duty on import of Covid vaccines be also exempted with immediate effect for a period of 3 months.

This will boost availability of these items as well as make them cheaper. The PM directed the Revenue Department to ensure seamless and quick custom clearance of such equipment. Accordingly, the Department of Revenue has nominated Shri Gaurav Masaldan, Joint Secretary, Customs, as the nodal officer for issues related to customs clearance for the above-mentioned items.

The Government of India 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. Similarly, in a major decision yesterday, free food grains will be given 80 crore Indians for the month of May & June 2021.

Finance Minister, Commerce and Industry Minister, Health Minister, Principal Secretary to the PM, Member NITI Aayog, Dr Guleria and Secretaries of the department of Revenue, Health and DPIIT & other officials participated in the meeting.

Customs duty exemption on oxygen equipment boosts supply and reduces import costs; expedited clearance mandated. Full exemption from Basic Customs Duty and health cess has been granted on imports of medical oxygen, oxygen production and storage plants, oxygen transport containers, concentrators and related accessories, ventilators, high-flow nasal devices and associated parts, and on imports of Covid vaccines; the Revenue Department is directed to ensure expedited customs clearance and has appointed a nodal officer for related clearance issues.