US eases pharma tariffs for BD
Bangladesh’s pharmaceutical industry has secured a measure of tariff relief in the US market, with the country included among 20 jurisdictions eligible for zero ad valorem tariffs on certain specialty medicines and related pharmaceutical ingredients.
The move could provide additional scope for Bangladesh’s pharmaceutical exporters in the US market, although the exemption is limited to specified categories of products and does not apply to all medicines exported from Bangladesh.
The tariff adjustment, announced by the US Department of Commerce, took effect on September 29.
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 September 23 specifying the pharmaceutical products eligible for the zero tariff and identifying the jurisdictions covered by the measure.
The eligible products include medicines and ingredients for which all approved indications are designated as orphan drugs, as well as nuclear medicines, plasma-derived therapies, fertility drugs, cell and gene therapies and antibody-drug conjugates.
The list also covers medical countermeasures for chemical, biological, radiological and nuclear threats, along with animal health products.
The zero-tariff treatment is available where products originate in a jurisdiction that has a current or forthcoming trade and security framework agreement with the United States, or where the products meet an urgent US health need.
Companies can apply to the Commerce Department for approval of products that qualify under the urgent-health-need provision.
The measure follows President Donald Trump’s April 2 proclamation imposing tariffs on imports of patented pharmaceuticals, biologics and associated ingredients as part of efforts to encourage greater pharmaceutical production in the United States.
The Commerce Department notice also clarifies that generic pharmaceutical products and their associated ingredients are not currently subject to the Section 232 pharmaceutical tariffs.
It further states that pharmaceutical articles covered by the relevant provisions include finished pharmaceutical products, active pharmaceutical ingredients and key starting materials used to manufacture those ingredients.
For Bangladesh, the tariff treatment comes as the country seeks to expand its pharmaceutical exports and strengthen its position in international markets.
The industry is one of the country’s major export-oriented manufacturing sectors, with growing interest in higher-value pharmaceutical products and greater access to regulated markets.
However, the US measure is product-specific, meaning Bangladeshi pharmaceutical exporters will need to determine whether individual products and ingredients meet the eligibility requirements rather than assuming that all pharmaceutical exports will receive zero-duty treatment.
An ad valorem tariff is a customs duty calculated as a percentage of the value of imported goods.
