The US will not charge any ad valorem tariff on certain speciality drugs and associated ingredients used for treatment of rare medical conditions imported from 20 countries, including Britain and India.
An ad valorem tariff is a set percentage of the monetary value of the goods to be taxed, according to the World Customs Organisation.
The products eligible for waiver include all drugs designated for rare diseases, infertility treatments, cell therapies, gene therapies, antibody-drug conjugates (ADCs), and animal pharmaceuticals. Components of these drugs are also subject to a zero per cent tariff rate.
The US Commerce Department made this announcement as it prepares to impose a 100 per cent tariff on certain patented pharmaceutical imports and their associated ingredients from September 29.
President Donald Trump had in April issued a proclamation to impose tariffs on imports of patented pharmaceuticals, biologics, and associated ingredients into the US as part of efforts to encourage domestic production.
The other countries in the zero tariff rate list include Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand and Vietnam.
The notice said qualifying products from these jurisdictions could receive a zero per cent tariff because they have a current or forthcoming trade and security framework agreement with the US.
Generic pharmaceutical products and their associated ingredients are not subject to pharmaceutical tariffs, according to the Commerce Department notice.
The notice also makes several technical corrections to the original proclamation, including amending the definition of “generic pharmaceutical articles” to specifically include unpatented animal health products.
It also clarifies that the definition of “pharmaceutical articles” only encompasses finished pharmaceutical products, their active pharmaceutical ingredients, and the key starting materials of such ingredients.
