Bangladesh among 20 countries gets US tariff relief on select specialty pharmaceuticals

Bangladesh has been included among 20 countries and jurisdictions eligible for zero ad valorem tariffs on specified specialty pharmaceuticals and related ingredients imported into the United States, providing tariff relief for qualifying drug exports from the country.

The measure, announced by the US Commerce Department, takes effect Tuesday (September 29).

The exemption does not cover all pharmaceutical exports from Bangladesh; it applies only to designated specialty medicines and the inputs used to manufacture them.

The qualifying categories include orphan drugs for rare diseases, nuclear medicines, plasma-derived therapies, fertility treatments, cell and gene therapies, antibody-drug conjugates, certain medicines used to address chemical, biological, radiological and nuclear threats, and specified veterinary pharmaceuticals.

Key ingredients used to manufacture eligible products are also covered.

Bangladesh is included alongside 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 exemptions form part of the implementation of a US pharmaceutical tariff regime introduced under Section 232 of the Trade Expansion Act.

The broader measure imposes a 100 per cent tariff on specified patented pharmaceuticals and associated ingredients for covered companies, with the latest phase taking effect on September 29.

The Commerce Department said qualifying products from the listed jurisdictions can receive zero-tariff treatment based on existing or forthcoming trade and security frameworks with the United States.

Companies may also seek approval for tariff relief for specialty medicines deemed necessary to meet an urgent US health need.

The latest rules also clarify that generic pharmaceuticals and their associated ingredients are not currently subject to the Section 232 pharmaceutical tariffs.

The definition of pharmaceutical articles covers finished medicines, active pharmaceutical ingredients and key starting materials used to produce those ingredients.