Manufacturing of Medical X-Ray Machines: Custom duty revised on X-ray tubes & flat panel detectors

New Delhi: The Union Finance Minister revised the custom duty rates on X-ray tubes and flat panel detectors. These revised rates are expected to positively impact the X-ray machine industry by enhancing component availability at lower costs. This change is anticipated to boost the domestic medical device sector, contribute to component availability at lower costs and reduced healthcare costs, making advanced medical imaging more accessible and affordable.

To promote domestic manufacturing of Medical X-Ray Machines and specified sub-assemblies, parts, sub-parts, a Phased Manufacturing Programme (PMP) was notified by Department of Pharmaceuticals on January 22, 2021, whereby tariff changes at an increasing rate were proposed in a phased manner.

The PMP was aimed at enabling the Medical X-Ray Machines and related sub-assembly, parts and sub-parts industry to plan their investment in the sector and increase domestic production, keeping in view the escalating duty structure. This was expected to increase domestic value addition and establish a robust Medical X-Ray Machines manufacturing eco-system in India.

However, the Industry represented before the department of Pharmaceuticals that manufacturing capacity for X-ray Tubes and Flat Panel Detectors is yet to develop in the country and requested for revision in the Phased Manufacturing Programme (PMP) schedule relating to these items. In this regard, after careful examination, it was found that it may take at least two years before sufficient domestic capacity is established for X ray tubes and Flat Panel Detectors to meet the domestic requirement. Thereafter, the Department vide OM dated June 24, 2024 requested Department of Revenue for revised rates.

Ministry of Finance vide notification No. 30/2024-Customs dated 23rd July, 2024 (S.No. 71) has revised the duty rates for said items as proposed by the Department.