# Section 232 pharmaceutical tariffs

> The US Section 232 duty on patented medicines under Proclamation 11020: a 100% total, 15% for five partners, 0% for the UK and generics, and onshoring rates.

Source: https://border.bot/docs/guides/countries/united-states/section-232/pharmaceuticals
Last updated: 2026-10-30

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> [!IMPORTANT] In effect for all companies since 29 September 2026
> Patented medicines from companies not listed in the proclamation's Annex III pay the Section 232 duty for goods entered from that date.

Patented pharmaceuticals and their ingredients imported into the United States pay a Section 232 duty that brings their total duty to 100%, under Proclamation 11020 of 2 April 2026. Products of the EU, Japan, South Korea, Switzerland and Liechtenstein pay a 15% total, UK products pay nothing extra since 31 July 2026, and generic medicines aren't covered. The duty started on 31 July 2026 for the companies listed in the proclamation's Annex III and on 29 September 2026 for everyone else.

Rules as of 30 October 2026.

## Which medicines does the pharmaceutical tariff cover?

The Section 232 pharmaceutical tariff covers patented pharmaceutical articles: finished drugs and their active ingredients and key starting materials, classified in the chapter 29 and 30 codes listed in U.S. note 40(c), that are under a valid, unexpired US patent and listed in FDA's Orange Book or Purple Book. Inactive ingredients and excipients are not pharmaceutical articles.

Generic pharmaceuticals, meaning FDA-approved products and ingredients off patent and off exclusivity, including unpatented animal health products, enter under heading 9903.04.67 with no Section 232 duty. Products in the listed codes that aren't pharmaceutical articles, or are neither patented nor generic, use heading 9903.04.69, also with no extra duty. Proclamation 11020 asked Commerce to report within a year on whether generics should be covered later.

## What are the pharmaceutical tariff rates?

The pharmaceutical tariff rates are set by chapter 99 headings 9903.04.60 to 9903.04.70, which are mutually exclusive: each import takes one, and where more than one could apply the lowest rate wins. The 100% and 15% rates are totals that include the regular column 1 duty, so a product whose regular rate is already higher pays no Section 232 duty.

| Heading | Applies to | Rate |
| --- | --- | --- |
| 9903.04.60 | Patented pharmaceuticals, default | 100% total |
| 9903.04.62 | Products of the EU, Japan, South Korea, Switzerland or Liechtenstein | 15% total |
| 9903.04.63 | Products of the UK | 0% since 31 July 2026 |
| 9903.04.64 | Companies with an onshoring plan approved by Commerce | 20%, rising to 100% on 2 April 2030 |
| 9903.04.65 | Companies with an approved onshoring plan and a most-favored-nation pricing agreement with HHS | 0% until 20 January 2029 |
| 9903.04.66 | Orphan drugs, nuclear medicines, plasma-derived and cell and gene therapies, fertility treatments and other specialty uses, from listed jurisdictions | 0% |
| 9903.04.67 | Generic pharmaceuticals | No Section 232 duty |
| 9903.04.68 | Products whose active ingredient, packaged in dosage form, is a product of the United States | No Section 232 duty |
| 9903.04.69 | Listed codes that aren't patented or generic pharmaceutical articles | No Section 232 duty |
| 9903.04.70 | Pharmaceuticals solely for clinical trials, research and development or other non-commercial use | 0% |

The jurisdictions eligible for 9903.04.66 are Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the EU, Guatemala, India, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, the UK and Vietnam (CSMS #70054007, applying Commerce's notice of 23 September 2026). US-origin pharmaceutical products aren't subject to the duty at all.

## How does the pharmaceutical tariff stack with other duties?

The pharmaceutical tariff is collected on top of any trade agreement rate: a free trade agreement or preference program lowers only the regular duty, and no chapter 99 heading can be used to cut the Section 232 duty further (U.S. note 40(b)). Antidumping and countervailing duties still apply, while the Section 301 forced-labor duty doesn't.

Patented pharmaceuticals are among the Section 232 goods exempt from the forced-labor duty (heading 9903.05.90), and pharmaceutical-use articles have their own exemption (9903.05.89). Drawback is available on the Section 232 pharmaceutical duties, unlike most of the metals duties (Proclamation 11020, clause 10). The [Section 232 overview](https://border.bot/docs/guides/countries/united-states/section-232) lists the other product groups, and border.bot's [Section 232 tariffs page](https://border.bot/countries/united-states/additional/tariffs/section-232) lists every pharmaceutical code by heading. Goods admitted to a foreign trade zone after the effective date must be admitted in privileged foreign status.

## What does a patented medicine pay?

A patented medicine pays the Section 232 rate of its heading, which depends on its origin and its maker's arrangements with Commerce, and for most finished medicines the regular duty is Free, so the Section 232 rate is the whole duty. Take a $10,000 shipment of a patented finished medicine classified in 3004.90.92, whose regular rate is Free.

| Origin | Heading | Section 232 duty |
| --- | --- | ---: |
| India | 9903.04.60, 100% total | $10,000 |
| Switzerland | 9903.04.62, 15% total | $1,500 |
| United Kingdom | 9903.04.63, 0% | $0 |
| Any origin, generic version | 9903.04.67 | $0 |

The importer of record has to know the product's patent status and the manufacturer's onshoring or pricing arrangements before entry, because those decide the heading. Patent status can't be read from a tariff code, so the [landed cost calculator](https://border.bot/tools/landed-cost-calculator/united-states) shows 9903.04.60 and the onshoring rate as conditional lines that apply when you declare them, and the [FDA guide](https://border.bot/docs/guides/countries/united-states/agencies/fda) covers the separate FDA entry requirements for drugs.

## Common questions

### Are generic drugs subject to the Section 232 tariff?

No. Generic pharmaceuticals and their ingredients enter under heading 9903.04.67 with no Section 232 duty, and Proclamation 11020 says they are not covered at this time.

### What is the pharmaceutical tariff on EU medicines?

15% in total, including the regular duty, under heading 9903.04.62. Most finished medicines have a Free regular rate, so the full 15% is the Section 232 duty.

### When did the US pharmaceutical tariff start?

On 31 July 2026 for the companies listed in Annex III of Proclamation 11020, and on 29 September 2026 for all other companies.

## Sources

- [Proclamation 11020: Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients Into the United States](https://www.federalregister.gov/d/2026-06956), Federal Register, 2026-04-09
- [Notice of Reduction of Tariffs on Patented Pharmaceuticals for Products of the United Kingdom](https://www.federalregister.gov/d/2026-15799), Federal Register, 2026-08-04
- [Procedures To Apply for Company-Specific Onshoring Agreements Under Proclamation 11020](https://www.federalregister.gov/d/2026-09489), Federal Register, 2026-05-13
- [Guidance and Procedures for Implementing Tariff Adjustments for Specialty Pharmaceuticals](https://www.federalregister.gov/d/2026-19498), Federal Register, 2026-09-23
- [CSMS #70054007: Updated Guidance, Section 232 Duties on Imports of Pharmaceutical Articles and Ingredients](https://content.govdelivery.com/accounts/USDHSCBP/bulletins/42cf077), U.S. Customs and Border Protection, 2026-09-28
- [Harmonized Tariff Schedule, 2026 Revision 21, chapter 99, U.S. note 40](https://hts.usitc.gov/reststop/file?release=currentRelease&filename=Chapter%2099), U.S. International Trade Commission, effective 2026-10-09