What is Remdesivir Drug

Remdesivir – the lifesaving drug is DUTY-FREE

With the world facing a global crisis, it is no surprise that people all around the world are also facing an economic crisis, in the least. Export Import Trade has been an exception to this crisis as it is the only trade flourishing in such times. 
The reason for Export Import Trade running successfully at such times is the global need for pharmaceutical goods and others. India is exporting Pharma products since the beginning of the pandemic.
When the world is facing a global crisis, the Indian government decided, this week, to waive off the import duty levied on the life-saving drug, Remdesivir. The raw material required for the manufacture of the drug was also waived off the Import Duty. 
First of all, let’s begin with understanding what Import Duty mean. The definition of Import Duty can go something like this, ‘the type of levied on the import of goods and specific export of nation’s custom authorities.’ 
Import Duty is sometimes referred to as customs duty, import tax, import tariff or tariff. The amount of import duty levied is generally decided from the value of goods. Widely, a 29.8% Import duty is levied on the import of Pharmaceutical products in India after GST.

There are some pharma products that are exempt from import Duty levied, they are mentioned below:

  • 3002: Human blood and its components
  • 3006 and 4014: All types of contraceptive products
  • Services provided by rehabilitation professionals for activities covered under the Rehabilitation Council of India Act, 1992.
These are the products on which 0% import duty is levied. The reason these pharma products attract 0% import duty is the fact that these are some most vital, life-saving drugs and services.
The Central government waived off the Custom duty of Remdesivir saying taking this step was a necessary deed in the public interest. Beta Cyclodextrin was also relieved off the Customs duty, which is an important raw material in the manufacture of Remdesivir.
As stated by the Finance ministry, the waiver of these materials is subject to the condition that the importer follows the procedure set out in the Customs rule 2017. The government further mentioned that this waiver of customs duty will remain in effect till October 31, 2021. Such a decision was made to increase the production of the drug to save lives fighting against COVID-19.
The government saw many benefits, in the public interest to decide to waive off the customs duty levied on Remdesivir. The surge in demand for Remdesivir over the past few days in India arose due to the severity of the second wave of the COVID-19 pandemic. With the second wave hitting the nation hard, the people and government are trying to stay in the fight, clinging onto Remdesivir.
The government is also trying to fight the hike in prices of these Life-saving drugs and their raw materials. The Minister of State for Chemicals and Fertilizers held a meeting with the manufacturers of drugs, asking for an increase in production and a decrease in the prices of the meds. 
There are seven Remdesivir manufacturers in India who has agreed to reduce the prices of the drug, for their own brands, ranging from 1000Rs to 2700 Rs. 
The government data shows that the seven manufacturers, together in India of Remdesivir drug hold the capacity of producing 38.80 Lakh vials per month. A Fast-track approval was provided by the government to these companies to increase their production of the drug to another 30Lakh vial per month. This will bring the total production of drugs to around 78 lakh vials per month.
This is the latest Government strategy to fight against the pandemic crisis. The strategy will not only help fight persistently against the viral disease but also increase the import of raw materials required for the manufacture of the drug.
As a result of this waive off, Russia, India’s old friend has come forth to aid, Russia offers India Oxygen and Remdesivir in the next fifteen days. Moscow offered a supply of 3 to 4 Lakh injections of Remdesivir per week to the Indian government. They are also willing to help India by providing Oxygen supply through ships.
Such are the impacts of waiving off Import Duty levied on Pharmaceutical goods, in India. Not only other nations are reaching out to with a helping hand in times of crisis, but it also sparks a ray of hope in the eyes of the sufferers.
The perks of being a part of the Exim Industry are ever present even in times of a global crisis. The best part of joining Export Trade is you can run it as a side hustle that requires only proper management and not absolute attention.
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