2 hrs ago
US Waives Tariffs on Speciality Drugs From 20 Countries
The United States plans to charge a very large tax on some patented medicines brought into the country.
However, certain special medicines from India and 19 other jurisdictions will have no tariff.
These medicines include treatments for rare diseases and infertility.
Some advanced cell, gene, and antibody-based treatments are also included.
Certain animal medicines and the ingredients used to make these products are covered too.
The jurisdictions qualify because they have trade or security agreements with the United States.
Generic medicines are not included in these pharmaceutical tariffs.
The Commerce Department also clarified which medicines and ingredients fall under the rules.
The United States will apply a zero per cent tariff to certain speciality drugs and ingredients imported from India and 19 other jurisdictions.
Eligible products include rare-disease medicines, infertility treatments, cell and gene therapies, antibody-drug conjugates, and animal pharmaceuticals.
The exemptions come as the United States prepares to impose a 100 per cent tariff on specified patented pharmaceuticals and associated ingredients.
Qualifying jurisdictions have current or forthcoming trade and security framework agreements with the United States.
Generic pharmaceuticals and their ingredients are excluded from the Section 232 pharmaceutical tariffs, while the notice also clarifies product definitions.
- Who
- The United States government, including the Commerce Department, and pharmaceutical exporters from India and 19 other jurisdictions.
- What
- The United States will apply zero per cent tariffs to certain speciality drugs and associated ingredients while imposing 100 per cent tariffs on specified patented pharmaceutical products and ingredients.
- Where
- The measures concern pharmaceutical imports into the United States from India and 19 other listed jurisdictions.
- When
- The country list was published on September 28; the 100 per cent tariff took effect on July 31 for companies in one annex and will apply to other covered companies from September 29.
- Why
- The tariff policy is intended to encourage domestic pharmaceutical production, while qualifying jurisdictions receive exemptions because of current or forthcoming trade and security framework agreements with the United States.
Key facts
- Zero-tariff rate
- Zero per cent for qualifying speciality drugs and their associated ingredients.
- Planned tariff
- One hundred per cent on specified patented pharmaceuticals and ingredients.
- Covered jurisdictions
- India and 19 other jurisdictions, including the European Union, Japan, South Korea, Switzerland, Thailand, Britain, and Vietnam.
- Eligible products
- Rare-disease drugs, infertility treatments, cell therapies, gene therapies, antibody-drug conjugates, and animal pharmaceuticals.
- Excluded products
- Generic pharmaceutical products and their associated ingredients are not subject to the Section 232 pharmaceutical tariffs.
- Legal basis
- Section 232 of the Trade Expansion Act.
- Definition changes
- The notice includes unpatented animal health products in the generic category and limits pharmaceutical articles to finished products, active ingredients, and key starting materials.
Sources
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