US Exempts Certain Indian Specialty Drugs From Tariffs
Rare-disease, infertility and advanced therapies from India among products eligible for zero tariff
- Certain Indian specialty drugs qualify for zero tariffs in the US.
- Rare-disease and advanced therapies are included.
- The US has listed 20 countries under the zero-tariff category.
- Generic pharmaceuticals remain outside the Section 232 tariffs.
GG News Bureau
New Delhi, 29th Sept: The United States has exempted certain speciality drugs and associated ingredients imported from India and 19 other countries from ad valorem tariffs, as Washington prepares to impose a 100% tariff on specified patented pharmaceutical imports.
The US Commerce Department published the list of eligible countries in the Federal Register ahead of the new tariff measures taking effect for additional covered companies from September 29.
The zero-tariff category includes drugs designated for rare diseases, infertility treatments, cell and gene therapies, antibody-drug conjugates (ADCs) and animal pharmaceuticals. Associated components of these products are also eligible for the zero per cent tariff rate.
Besides India, the countries covered by the exemption include Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, the UK and Vietnam.
According to the notice, qualifying products from these jurisdictions may receive the zero tariff treatment because the countries have a current or forthcoming trade and security framework agreement with the US.
The exemptions form part of the implementation of US President Donald Trump’s April proclamation under Section 232 of the Trade Expansion Act concerning imports of pharmaceuticals and pharmaceutical ingredients.
The proclamation provides for a 100% tariff on specified patented pharmaceuticals and associated ingredients. The measure took effect on July 31 for companies identified in one annex and is scheduled to apply to other covered companies from September 29.
However, generic pharmaceutical products and their associated ingredients are not covered by the Section 232 pharmaceutical tariffs, according to the Commerce Department notice.
The latest notice also makes technical changes to the original proclamation. These include clarifying that “generic pharmaceutical articles” cover unpatented animal health products.
It further specifies that “pharmaceutical articles” cover finished pharmaceutical products, their active pharmaceutical ingredients and key starting materials used to produce those ingredients.
