America has decided not to impose percentage duty on certain medicines and essential items used in them imported from 20 countries including India. This decision comes at a time when the US is preparing to impose 100% tariffs on some patented drugs and pharmaceutical ingredients.
The US Department of Commerce has released in the Federal Register a list of countries from which certain eligible drugs will receive the benefit of 0% tariff. Apart from India, a total of 20 countries including Argentina, Bangladesh, Cambodia, Ecuador, European Union, Indonesia, Japan, South Korea, Switzerland, Britain, Vietnam are included in this list. America has taken this step at a time when it is preparing to impose 100% tariff on some patented pharmaceutical drugs and their related items from September 29. In such a situation, the decision to keep these special categories of medicines out of duty is considered important for the Indian pharmaceutical sector.
Which medicines will get 0% tariff?
According to the US, all medicines used in the treatment of rare diseases, medicines for infertility treatment, cell therapy, gene therapy and antibody-drug conjugates (ADCs) have been kept in the zero tariff category. 0% tariff will also be applicable on components of these medicines. Apart from this, some veterinary medicines will also get the benefit of this exemption. This means that companies sending these designated products to America will not be burdened with new duties.
Why important for India’s pharma sector?
India is among the world’s leading generic drug manufacturers and the US market is an important market for Indian pharma companies. However, the US Commerce Department has clarified that these pharma tariffs under Section 232 will not apply to generic drugs and the essential ingredients used in them. This exemption is for products that come from countries with existing or proposed trade and security agreements with the US. This decision of America has been taken under the announcement issued by President Donald Trump on April 2, the purpose of which is to promote domestic production of patented medicines and pharmaceutical items.
Input- PTI
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SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
