US exempts select speciality drugs from new tariffs for 20 countries including India

Eligible products for the zero per cent tariff rate 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

Eligible products for the zero per cent tariff rate 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

Mumbai: India is among 20 jurisdictions eligible for zero US tariffs on select speciality pharmaceutical products and their associated ingredients, offering relief as Washington moves ahead with steep duties on certain licensed medicines.The exemption comes amid the US decision to impose a 100 percent ad valorem tariff on specified licensed pharmaceutical products and ingredients under Section 232 of the Trade Expansion Act.Speciality Drugs CoveredThe zero-tariff treatment is limited to specified speciality medicines and does not cover the entire pharmaceutical trade.Eligible products include medicines for rare diseases, nuclear medicines, plasma-derived therapies and fertility drugs. Cell and gene therapies, antibody-drug conjugates and certain medicines used against chemical, biological, radiological and nuclear threats are also covered.Animal pharmaceuticals and ingredients used in eligible products can also qualify for the exemption.An orphan drug has been defined as a drug or biological product designated for rare diseases or conditions where all approved indications relate to such diseases.Generics Get ReliefThe development is particularly significant for India because generic medicines form a major part of the country's pharmaceutical exports to the US. Piyush Goyal Likely To Meet USTR Greer This Week To Discuss Tariffs, Russia Oil Issue And India-US Trade DealThe US Commerce Department has clarified that Section 232 pharmaceutical tariffs currently do not apply to generic pharmaceutical products and their associated ingredients.India's drugs and pharmaceutical exports stood at $30.46 billion in 2024-25, with the US remaining one of the industry's key overseas markets.India Among Eligible MarketsIndia is included alongside jurisdictions such as the European Union, Japan, South Korea, Switzerland, Taiwan, Thailand, the United Kingdom, Vietnam, Argentina, Bangladesh, Malaysia and Indonesia.Zero tariffs may apply to products originating from countries that have, or are expected to have, trade and security agreements with Washington.Urgent Health ExemptionCompanies can also seek tariff relief where speciality medicines are required to address an urgent US health need. Trump Signs Russia-Iran Sanctions Act, Authorises Up To 100% Tariffs On Russian Oil Buyers Including IndiaApplications will be assessed case-by-case and must provide details including product classification, active ingredients, manufacturer, country of origin and medical requirement.The rules also provide zero-tariff treatment for certain products imported solely for clinical trials, research, development or other non-commercial purposes.

Washington, Sep 28: 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 India and 19 other countries.US announces drug tariff exemptionsAn ad valorem tariff is a set percentage of the monetary value of the goods to be taxed, according to the World Customs Organisation.The US Commerce Department published the list of countries in the Federal Register as it prepares to impose a 100 per cent tariff on certain patented pharmaceutical imports and their associated ingredients from September 29.On April 2, President Donald Trump 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.Eligible products for the zero per cent tariff rate 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.Countries covered under exemptionBesides India, the other countries in the zero tariff rate category are 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.Piyush Goyal Likely To Meet USTR Greer This Week To Discuss Tariffs, Russia Oil Issue And India-US Trade DealThe 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.Implementation of tariff policyThe exemptions are part of the implementation of Trump’s April proclamation adjusting imports of pharmaceuticals and pharmaceutical ingredients under Section 232 of the Trade Expansion Act.The proclamation imposed a 100 per cent tariff on specified patented pharmaceuticals and ingredients.It took effect on July 31 for companies named in one annex and will apply to other covered companies from September 29.Clarifications on pharmaceutical importsGeneric pharmaceutical products and their associated ingredients are not subject to the Section 232 pharmaceutical tariffs, according to the Commerce Department notice.Also Watch: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.(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)