IV. CUSTOMS DUTIES AND IMPORT POLICIES

A. Background

In pursuance of the implementation of Commission resolution 49/6 on the Proclamation and Agenda for Action for the Asian and Pacific Decade of Disabled Persons, 1993-2002, the ESCAP secretariat proposed for consideration by the members of the Bangkok Agreement a reduction or elimination of customs duties concerning devices, components and materials required for the daily living of people with disabilities. The Standing Committee of the Bangkok Agreement whose membership comprises Bangladesh, India, Lao PDR, Republic of Korea, Sri Lanka and Papua New Guinea, at its fourteenth session held at Bangkok in December 1993, expressed full support to the proposal.

As a first step towards the goal, the ESCAP secretariat, in its letter dated 24 March 1994, requested assistance from selected members and associate members of ESCAP in collecting information on the current import regime on such assistive devices. In this regard, an extensive list of devices for daily utilization by disabled persons was provided by the secretariat to facilitate the preparation of the required information. The intent of the exercise was to collate the information and circulate to members and associate members of ESCAP for their further consideration of the introduction of appropriate policy measures for the implementation of the resolution.

To date, 10 members and associate members of ESCAP, namely, Australia, Hong Kong, India, Japan, Philippines, Republic of Korea, Russian Federation, Sri Lanka, United Kingdom and United States of America have provided the required information.

Selected information from India, Philippines, Republic of Korea and Sri Lanka are reproduced below.

B. India

1. Exemption to appliances and apparatus for Blind and Deaf.

The Central Government exempts the goods specified in the Table below, when imported into India by any institution (including a registered Co-operative Society) for the blind and the deal being bona fide gifts to, or purchased out of donations received abroad in foreign exchange by, such institution, from:

(i) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975);

(ii) the whole of the auxiliary duty of customs leviable thereon under sub-section (1) of section 35 of the said Finance Act; and

(iii) the whole of the additional duty leviable thereon under section 3 of the said at the time of importation of such goods into India.

THE TABLE

(a) All tangible appliances for the blind.

(b) Hearing aids and other audio-visual aids for the education of the deaf.

(c) Vocational aids for the blind and the deaf.

(d) Articles including instruments, apparatus, appliances, machinery and spares or component parts or accessories thereof required by such institution for the purpose of giving training or imparting instructions to the blind and deaf.

Where any such institution is scheduled to begin to function only after the importation of the goods specified in the above Table, the exemption under that paragraph shall not apply in respect of the goods imported by that institution, unless an undertaking in writing is given by the President or the Secretary of that institution that it will begin to function within a period of six months from the date of importation of the goods provided that in any particular case the aforesaid period of six months may, on sufficient cause being shown, be extended by the Collector of Customs concerned by such further period as he may deem fit.

Where goods have been purchased out of donations received abroad in foreign exchange the institution has been permitted to maintain an account abroad by the Reserve Bank of India for the purpose of receiving funds donated overseas.

(Customs Notification No. 211-Cus., dated 10 November 1978.)

2. Exemption to specified goods imported by a handicapped or disabled person for his personal use.

The Central Government exempts goods specified in the Table below, when imported into India by a handicapped or disabled person for his personal use, from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and the additional duty leviable thereon under section 3 of the said Tariff Act, subject to the condition that the importer produces to the Assistant Collector of Customs, at the time of importation, a certificate from the Civil Surgeon or the District Medical Officer or the Administrative Medical Officer or the Director of Health Services of the Concerned State or a Specialist in the concerned speciality attached to a Government Hospital or a recognized medical college to the effect that the importer suffers from the particular handicap in disability and that the imported goods in respect of which the exemption is claimed are essential to overcome the said handicap or disability.

THE TABLE

1. (i) Braille writers and braille writing equipment,
   (ii) Hand writing equipment Braille Frames, Slates, Writing Guides, Styli, Braille Erasers, Script Writing Guides, (iii) Canes, Electronic aids like the Sonic Guide,
   (iv) Optical, Environmental Sensors
   (v) Arithmetic Aids like the Taylor Frame (Arithmetic and Algebra Types), Cubarythm, Speaking or Braille Calculator,
   (vi) Geometrical Aids like combined Graph and Mathematical Demonstration Board, Braille Protractors, Scales, Compasses and Spar Wheels,
   (vii) Electronic measuring equipment, such as calipers, Micrometers, comparators, gauges, gauge blocks Levels, Rules, Rulers and Yard sticks,
   (viii) Drafting, drawing aids, tactile displays,
   (ix) Specially adapted clocks and watches,
2. (i) Orthopaedic appliances falling under Heading No. 90.21 of the First Schedule to the said Tariff Act.
   (ii) Wheel chairs falling under Heading No. 87.13 of the said First Schedule.
3. Artificial electronic larynx and spares thereof.
4. Artificial electronic ear (Cochlear implant).

(Customs Notification No. 105/86-Cus., dated 17 February 1986 as amended by Customs Notification No. 189/89-Cus., dated 22 June 1989)

3. Exemption to machinery and equipment for handling disabled persons.

The Central Government exempts machinery and equipment falling within Chapters 84, 85 and 88 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) required for handling physically disabled persons at the airport or in the aircraft or both, when imported into India, from

(a) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); and (b) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the condition that the exemption contained herein shall be applicable only to those goods which are certified, by an officer not below the rank of Deputy Secretary in the Ministry of Civil Aviation, Government of India, to be required for handling physically disabled persons at the airport or in the aircraft or both. (Customs Notification No. 69/93-Cus., dated 28 February 1993)

4. Closed Circuit Television System.

The Central Government exempts Closed Circuit Television System used as Low Vision Aid, when imported into India, from so much of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as is in excess of the amount calculated at the rate of 10 per cent ad valorem. (Customs Notification No. 178/93-Cus. dated 26 October 1993)

5. Effective rate for specified hearing aid appliances and their components.

The Central Government exempts the goods specified in column (2) of the Table below, when imported into India, from so much of that portion of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as is in excess of the amount calculated at the rate of 10% ad valorem, subject to the conditions, if any, specified in the corresponding entry in column (3) of the said Table.

(Customs Notification No. 82/94-Cus., dated 1 March 1994)

6. Exemption to life saving drugs, medicines or equipments.

The Central Government exempts goods specified in the Schedule below when imported into India from:

(i) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); and

(ii) the whole of the additional duty leviable thereon under section 3 of the Customs Tariff Act, 1975 (51 of 1975).

General Exemption No. 100.

1. Instruments and implants including self curing acrylic Bone Cement for replacement and bonding of hips, knee and other joints for severely crippled and handicapped.

2. The following items required by the spinal patients and other categories of physically handicapped people:

1. (a) Folding wheel chairs with detachable arms and footrests
   (b) special light wheel chairs for easy handling
   (c) motorised wheelchairs
   (d) special purpose chairs for stairs climbing for tetraplegics and paraplegic workers
2. Aids for disabled namely, folding walking frames
3. Aids to extend reach to pick up small items (with small magnet pick up)
4. Specialized fixtures for orthopaedic and spastic, tetraplegics for manoeuvreing and providing dexterity to fingers and wrist
5. ..... for prevention of pressure sores
6. Emulsion cushions for tetraplegics and working paraplegics to avoid pressure sores.

Tariff Rates Applicable to the ESCAP Indicative List of Assistive Devices (INDIA)

C. Philippines

Section 105, Conditionally-Free Importations, of the Tariff and Customs Code of the Philippines stipulates that imported articles donated to, or for the account of, any duly registered relief organization, not operated for profit, for free distribution among the needy, upon certification by the Department of Social Services and Development or the Department of Education, Culture and Sports, as the case may be shall be exempt from the payment of import duties upon compliance with the formalities prescribed in, or with, the regulations which shall be promulgated by the Commissioner of Customs with the approval of the Secretary of Finance; Provided, That any article sold, bartered, hired or used for purposes other than that they were intended for without prior payment of the duty, tax or other charges which would have been due and payable at the time of entry if the article had been entered without the benefit of this section, shall be subject to forfeiture and the importation shall constitute a fraudulent practice against customs revenue punishable under Section Thirty-six hundred and two, as amended of this Code: Provided, further, That a sale pursuant to a judicial order or in liquidation of the estate of the deceased person shall not be subject to the preceding provision, without prejudice to the payment of duties, taxes and other charges: Provided, finally, That the President may upon recommendation of the Secretary of Finance, suspend, disallow or completely withdraw, in whole or in part, any of the conditionally-free importation under this section.

The provisions of general and special laws, including those granting franchises, to the contrary notwit-hstanding, there shall be no exemptions whatsoever from the payment of customs duties except those provided for in this Code; those granted to government agencies, instrumentalities or government-owned or controlled corporations with existing contracts, commitments, agreements, or obligations (requiring such exemption) with foreign countries; international institutions, associations or organizations entitled to exemption pursuant to agreements or special laws; and those that may be granted by the President upon prior recommendation of the National Economic and Development Authority in the interest of national economic development.

Tariff Rates Applicable to the ESCAP Indicative List of Assistive Devices (Philippines)

D. Republic of Korea

Article 28-6, Abatement of or Exemption from Customs Duty on Particular Goods, of the Customs Act stipulates that (1) When goods specially made or manufactured for use by mentally or physically handicapped persons such as the sight, hearing or speech impaired, the disabled, chronic sufferers from unsound kidney, etc. , which are designated by the Ordinance of the Ministry of Finance are imported, they may be abated or exempted from customs duty. (Amended by Law No. 3478, Dec. 31, 1981; Law No. 3666, Dec. 29, 1983; Law No. 4027, Dec. 26, 1988: Law No. 4286, Dec. 31, 1990).

In accordance with Article 21 of the Ordinance of the Ministry of Finance for Customs Act, the following are the tariff rates and their reduction rates as of 1994.

Tariff Rates and their Reduction Rates of Goods Falling Under Sub-Para. 5,
Paragraph 1, Customs Act of Republic of Korea

E. Sri Lanka

The Sri Lanka Customs tariff provides the duty free admission to the following goods:

(1) Articles specially designed for the use of the deaf and the blind.

(2) Artificial limbs, hearing aids and other appliances which are worn or carried, or implanted in the body to compensate for a defect or disability.

(3) Invalids' carriages whether or not motorized or otherwise mechanically propelled proved to the satisfaction of the Director General of Customs as having been imported for the exclusive use of invalids.

(4) Machinery, medical and surgical instruments, apparatus and accessories proved to the satisfaction of the Director General of Customs as having been imported for the treatment of patients afflicted with kidney disorders.

If the items fall within the ambit of the above exemptions they could be admitted free of duty.

Tariff Rates Applicable to the ESCAP Indicative List of Assistive Devices (INDIA)

Tariff Rates Applicable to the ESCAP Indicative List of Assistive Devices (Philippines)

Tariff Rates and their Reduction Rates of Goods Falling Under Sub-Para. 5,
Paragraph 1, Customs Act of Republic of Korea

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Economics and Social Commission for Asia and the Pacific
Production and distribution of assistive devices for people with disabilities: Supplement2
- Chapter 4 -

Printed in Thailand
November 1997 1,000

United Nations Publication
Sales No. E.98.II.F.7
Copyright © United Nations 1997
ISBN: 92-1-119775-9
ST/ESCAP/1774