U.S. Grants Duty-Free Access to Specialized Medicines from Bangladesh and 19 Other Countries

The United States has announced a 100% tariff exemption on selected specialized pharmaceutical products imported from Bangladesh and 19 other countries and territories, allowing eligible medicines to enter the U.S. market duty-free.

The U.S. Department of Commerce's Bureau of Industry and Security (BIS) recently published a list of countries and territories eligible for the zero-tariff treatment.

The exemption applies to a range of advanced and highly specialized medical products, including medicines for rare diseases, nuclear medicine, plasma-derived therapies, fertility treatments, cell and gene therapies, and antibody-drug conjugates (ADCs).

Medical products used to respond to chemical, biological, radiological, and nuclear (CBRN) threats, as well as certain veterinary products, are also covered under the policy. Raw materials and components required for manufacturing these products may likewise qualify for duty-free treatment.

According to a report by India's Business Standard, the tariff exemption is subject to specific conditions. In line with President Donald Trump's trade policy, the benefits will apply only to countries that have existing or proposed trade and security framework agreements with the United States and to products deemed essential for meeting the country's critical public health needs.

In addition to Bangladesh, the list includes 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.

However, the BIS notice makes clear that patented conventional medicines not included in the specified categories will remain subject to the existing 100% tariff unless they qualify for another exemption.

The rules are different for generic medicines. The Commerce Department said generic drugs and their ingredients will not be subject to the tariffs imposed under Section 232, ensuring that they remain exempt from the new duties.