CBP Issues Implementation Guidance for Section 232 Tariffs on Patented Pharmaceuticals

The U.S. Customs and Border Protection (CBP) has released implementation guidance for the Section 232 tariffs on certain patented pharmaceutical products and pharmaceutical ingredients under Presidential Proclamation 11020. 

Effective Date: July 31, 2026

All importers of products classified under the affected HTSUS Chapters 29 and 30 must:

• Report the appropriate Chapter 99 HTSUS classification on all entries.
• This reporting requirement applies even if no additional duty is currently owed.

Section 232 Pharmaceutical Tariff Implementation Timeline

Date	Requirement
July 31, 2026	Chapter 99 reporting becomes mandatory for all affected imports. Section 232 duties begin only for products from companies listed in Annex III of the Proclamation.
July 31, 2026 - September 28, 2026	Importers of products from companies not listed in Annex III should report HTSUS 9903.04.61, which carries a 0% additional duty during this transition period.
September 29, 2026	Section 232 duties expand to products from all remaining companies, unless an exemption or special provision applies.

 

Duty Rates at a Glance

HTSUS	Description	Additional Duty
9903.04.60	Standard patented pharmaceutical articles	100%
9903.04.61	Transitional filing (non-Annex III companies through Sept. 28)	0%
9903.04.62	Products of Japan, EU Member States, South Korea, Switzerland & Liechtenstein	15%
9903.04.63	Products of the United Kingdom	10%
9903.04.64	Approved qualifying onshoring plans* *At this time, the Dept. of Commerce has not identified any companies eligible for this HTS	20%
9903.04.65 - 9903.04.69	Various exempt or qualifying categories	0%

 

Products Remaining Exempt

The following products continue to receive 0% additional Section 232 duty:

• Generic pharmaceutical products
• U.S.-origin pharmaceutical products
• Certain qualifying pharmaceutical products identified under HTSUS 9903.04.65 through 9903.04.69

Additional CBP Guidance

• If multiple Section 232 rates could apply to the same product, the lowest applicable duty rate will apply.
• Section 232 duties are collected in addition to any applicable Free Trade Agreement (FTA) preferential duty rates.
• Duty drawback remains available for duties paid under this proclamation.
• Products admitted into a U.S. Foreign Trade Zone (FTZ) generally must enter under Privileged Foreign Status when subject to these duties.

Eastern is actively monitoring these regulatory changes. Our customs brokerage team can assist with tariff classification, entry filing requirements, compliance reviews, and duty mitigation strategies to help ensure your shipments remain compliant and avoid unnecessary delays.