Duty Differential for Medical Device Manufacture Hiked to 5% + 4% (SAD)

     7.5% + 4% (SAD) on Complete Parts and other Inputs

(Previous 5% and 5% w/o SAD)

     Move Follows Task Force Recommendations

[Click here for Recommendations of the Task Force on the Medical Devices Sector in India 2015]

Rate of basic customs duty on specified medical device increased from 5% to 7.5%; Simultaneously, exemption from additional customs duty (SAD) on these medical devices has also been withdrawn, and they will now attract 4% SAD; Basic customs duty is being reduced to 2.5% along with full exemption from SAD on raw materials, parts and accessories for manufacture of medical devices, falling under headings 9018 to 9022.

A Task Force was set up to examine various issues concerning the domestic Medical Devices Sector.

Notification Nos. 4/2016-Customs and 5/2016-Customs, both dated 19.01.2016 have been issued in this regard.

These changes are expected to provide impetuous to the domestic medical devices sector, support Make in India campaign of the Government and generate employment.

The concessional basic customs duty on hospital equipment for use in hospitals run by Central or State Government or registered societies, and specified assistive devices, rehabilitation aids and other goods for disabled will, however, continue.

[Customs Notification No. 04 dated 19th January 2016]

Seeks to make further amendments to the Notification No.12/2012-Customs dated 17.03.2012.

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 12/2012-Customs, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification No. G.S.R.185(E), dated the 17th March, 2012, namely:-

In the said notification, in the Table, for serial numbers 473 and 474 and the entries relating thereto, the following serial numbers and entries shall respectively be substituted, namely:-


Chapter or heading or sub-heading or tariff item

Description of goods

Standard rate

Additional duty rate

Condition No.








9018 32 30, 9018 50 20, 9018 90 21, 9018 90 24, 9018 90 43, 9018 90 95, 9018 90 96, 9018 90 97, 9018 90 98, 9019 10 20, 9022 90 10 or 9022 90 30

Goods required for medical, surgical, dental or veterinary use

Explanation.- For the purposes of this entry, the term Goods refers to medical instruments or appliances required for medical, surgical, dental or veterinary use only and do not refer to parts and spares thereof.





90 or any other Chapter

Raw materials, parts or accessories for use in manufacture of goods falling under headings 9018, 9019, 9020, 9021 or 9022.