Bangladesh Among 20 Markets Getting US Drug Tariff Waiver

The United States has exempted certain specialty drugs and their key ingredients imported from Bangladesh and 19 other countries and territories from ad valorem tariffs.

The tariff exemption took effect on Tuesday, with Bangladesh included among the markets eligible for the waiver under a US Department of Commerce notification.

The exemption does not cover all pharmaceutical products exported from Bangladesh. It applies only to specified categories of specialty medicines and their ingredients.

Eligible products include orphan drugs used to treat rare diseases, nuclear medicines, plasma-derived therapies, fertility medicines, cell and gene therapies, antibody-drug conjugates, medical products used against chemical, biological, radiological and nuclear threats, and animal-health products.

The other markets covered by the exemption 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 said products supplied from countries that have, or may enter into, trade or security agreements with the United States may qualify for the exemption. Products capable of meeting critical US healthcare needs may also be eligible.

Companies seeking exemptions under the critical healthcare needs provision can apply to the US Commerce Department for approval, according to the notification.

The move follows an April 2 proclamation by US President Donald Trump imposing additional tariffs on patented pharmaceuticals, biologics and related raw materials and ingredients as part of efforts to encourage domestic production.

The latest notification specifies that generic drugs and their ingredients are not subject to the US Section 232 pharmaceutical tariffs.

It also makes several technical amendments to the original proclamation, including expanding the scope of generic products to cover certain patent-free animal-health products.

The notification further clarifies the definition of “pharmaceutical articles” to include finished pharmaceutical products, their active pharmaceutical ingredients (APIs) and key starting materials used to manufacture those ingredients.

An ad valorem tariff is a duty calculated as a percentage of the value of an imported product.

For Bangladesh, the exemption could create an opportunity for exporters of eligible specialty pharmaceutical products to access the US market without the additional tariff, although the benefit is limited to products that meet the specified eligibility criteria.