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CBP: Section 232 patented pharma/API duties hit non-Annex III on 29 Sep (China default 100%)

CBP CSMS #69395344 (30 Jul 2026) implements Presidential Proclamation 11020 on patented pharmaceuticals and ingredients (APIs and key starting materials). Annex III company products were dutiable from 31 Jul 2026; all other companies become subject on 29 September 2026 at 12:01 a.m. ET. Default heading 9903.04.60 is a 100% combined Column 1 + Section 232 rate. Preferential combined rates apply for Japan/EU/Korea/Switzerland/Liechtenstein (15%, 9903.04.62) and the UK (10%, 9903.04.63). Generics a

U.S. Customs and Border Protection’s CSMS #69395344 (issued 30 July 2026) gives entry guidance for Presidential Proclamation 11020, which imposes additional Section 232 duties on certain patented pharmaceuticals and pharmaceutical ingredients (active pharmaceutical ingredients and key starting materials). Generic pharmaceuticals and their associated ingredients are not subject to the additional duties. Affected Chapter 29 and 30 classifications must report an applicable Chapter 99 heading from 9903.04.60–9903.04.69.

Timing is staggered. Products of companies listed in Annex III to the Proclamation became dutiable for consumption entries or warehouse withdrawals on or after 12:01 a.m. eastern time on 31 July 2026. Products of all other companies become subject on or after 12:01 a.m. eastern time on 29 September 2026. From 31 July through 28 September 2026, non-Annex III patented pharmaceuticals and ingredients still file zero-duty HTSUS 9903.04.61 even though no Section 232 duty is due in that window.

Rate headings in the CSMS: 9903.04.60 defaults to a 100% ad valorem combined Column 1 and Section 232 rate; 9903.04.62 provides a 15% combined rate for products of Japan, EU member countries, South Korea, Switzerland, or Liechtenstein; 9903.04.63 provides a 10% additional rate for United Kingdom products; generics use 9903.04.67 at 0% additional. China is not named among the reduced-rate jurisdictions, so China-origin patented articles and ingredients that do not qualify for another exemption fall under the default 100% heading once the 29 September clock hits. CBP also notes drawback availability and privileged-foreign FTZ admission rules for covered goods.

Source: U.S. CBP (CSMS #69395344)

Topics

  • tariffs
  • section-232
  • pharma
  • api
  • customs
  • cbp
  • procurement
  • usa
  • china

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