United States Levies 100 pc Duty On Patented Drugs, Generics Exempted

The US has imposed 100 per cent duty on the import of patented pharmaceuticals and associated pharmaceutical ingredients. 

Generic drugs have been kept out of the duty for the time being. But, if pharma companies increasingly seek evergreening of patents, they will see fewer off-patented drugs in the pipeline. 

“I have determined that it is necessary and appropriate to impose a 100 percent ad valorem duty rate on the import of patented



pharmaceuticals and associated pharmaceutical ingredients,” US President Donald Trump was quoted in a White House release.

However, generic drugs are not subjected to the duty. “This determination includes purchases of generic pharmaceuticals and ingredients for the Strategic API Reserve. 

I find that such products should not be subject to section 232 tariffs at this time,” he said. This decision is in favour Indian pharmaceutical companies for the time being.