USA imposes 100% import duty on certain patented pharmaceuticals
Pharmaceutical importers' customs teams face 100% tariff on patented-drug consignments
Change
USA imposed a 100% ad valorem import duty on certain patented pharmaceuticals and associated pharmaceutical ingredients via an April 2 executive order.
Why it matters
Imports of the specified patented pharmaceuticals and associated pharmaceutical inputs into the USA are now subject to a 100% ad valorem duty at US entry. India's exports to the USA are concentrated in low-cost generic medicines and therefore fall largely outside the tariff's targeted scope.
Implications
- — US-based customs brokers and import-entry preparers must update customs declarations immediately to include the 100% ad valorem duty for covered patented-drug consignments — failure to declare the duty exposes importers to underpayment and US customs enforcement actions.
- — Trade-compliance teams at US pharmaceutical distributors and manufacturers must revise tariff classifications and compliance controls before the next shipment arrival — entries using outdated classifications risk retrospective duties or classification disputes.
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Source
View on The Hindu