Bangladesh among 20 nations exempt from US tariffs on specialty drugs

Highlights:

• Exemption covers specified specialty drugs and associated ingredients
• Bangladesh is among 20 jurisdictions eligible for the zero ad valorem tariff
• The tariff adjustment takes effect on 29 September
• Exemption covers select medicines and associated ingredients, not all pharmaceuticals
• Generic drugs are excluded from the Section 232 pharmaceutical tariffs

Bangladesh has been included among 20 jurisdictions eligible for a zero ad valorem tariff on certain specialty drugs and associated ingredients imported into the United States.

The tariff adjustment, announced by the US Department of Commerce, takes effect today (29 September). The exemption applies only to specified categories of specialty pharmaceutical products and does not cover all medicines exported from Bangladesh.

The other eligible jurisdictions are Argentina, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, India, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland and Liechtenstein, Taiwan, Thailand, the United Kingdom and Vietnam.

The US Commerce Department issued a notice on 23 September defining the pharmaceutical products eligible for the zero tariff and identifying the jurisdictions covered by the adjustment.

Eligible products include medicines and ingredients for which all approved indications are designated as orphan, nuclear medicines, plasma-derived therapies, fertility drugs, cell and gene therapies, antibody-drug conjugates, medical countermeasures for chemical, biological, radiological and nuclear threats, and animal health products.

The zero-tariff treatment is available where products originate in a jurisdiction with a current or forthcoming trade and security framework agreement with the United States, or where the products meet an urgent US health need.

Companies may seek approval from the Commerce Department for products qualifying under the urgent-health-need provision.

The measure follows President Donald Trump’s 2 April proclamation imposing tariffs on imports of patented pharmaceuticals, biologics and associated ingredients as part of efforts to encourage pharmaceutical production in the United States.

The Commerce Department’s notice also clarifies that generic pharmaceutical products and their associated ingredients are not subject to the Section 232 pharmaceutical tariffs at this time. It further clarifies that pharmaceutical articles include finished pharmaceutical products, active pharmaceutical ingredients and key starting materials used to produce those ingredients.

An ad valorem tariff is a duty calculated as a percentage of the value of imported goods.