US has exempted select speciality medicines and related components from import duties for India and 19 other partner jurisdictions, offering potential relief to parts of the pharmaceutical industry.The exemption comes as Washington moves ahead with a 100% tariff on certain patented pharmaceutical products. The US Commerce Department has formally notified the eligible countries and product categories through the Federal Register.The zero-duty framework covers medicines and related products used for rare diseases, fertility treatments, advanced cell and gene therapies, antibody-drug conjugates (ADCs) and veterinary healthcare. Key components used to manufacture these products are also covered by the exemption.Besides India, the jurisdictions covered by the zero-duty framework include Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, Britain and Vietnam, ANI reported.According to official notices, goods from these jurisdictions qualify for a 0% tariff if they are covered by an existing or forthcoming trade and security framework agreement with the US.The World Customs Organisation defines an ad valorem tariff as “a set percentage of the monetary value of the goods to be taxed”.What the 100% pharma tariff coversThe tariff framework stems from an April directive issued by US President Donald Trump under Section 232 of the Trade Expansion Act. The measure was aimed at encouraging greater pharmaceutical manufacturing in the US.
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An April 2 proclamation imposed a 100% duty on specified patented drugs, biologics and related ingredients. The tariffs took effect on July 31 for companies covered by the initial annex, while the measures are being extended to other listed companies from September 29.However, generic medicines and their constituent ingredients remain exempt from the Section 232 pharmaceutical tariffs.The Commerce Department has also made technical changes to the original proclamation. The revised rules clarify the definition of “generic pharmaceutical articles” to include unpatented animal health products.The definition of “pharmaceutical articles” has also been clarified to cover finished medicines, active pharmaceutical ingredients and key starting materials.
