On July 30, 2026, in Cargo Systems Messaging Service (CSMS) #69395344, U. S. Customs and Border Protection (CBP) issued guidance implementing Presidential Proclamation 11020. The proclamation imposes new Section 232 tariffs on certain patented pharmaceuticals and pharmaceutical ingredients imported into the United States. The guidance becomes operational on July 31, 2026, and establishes new reporting and duty requirements for importers and customs brokers.
New Tariffs Apply Only to Patented Pharmaceuticals
The Section 232 duties apply to:
- Patented pharmaceutical products
- Active Pharmaceutical Ingredients (APIs)
- Key Starting Materials (KSMs) used in patented pharmaceuticals
Generic pharmaceuticals and their ingredients are excluded and remain duty-free under this program.
Staggered Duty Implementation
There are two implementation dates:
- July 31, 2026: Companies specifically identified in Annex III of the Proclamation become subject to duties immediately.
- September 29, 2026: All other affected companies become subject to the Section 232 tariffs.
Reporting Requirement Begins July 31, 2026
Effective July 31, 2026, all importers of goods classified under the affected Harmonized Tariff Schedule (HTS) Chapters 29 and 30 must report the applicable new Chapter 99 HTSUS tariff provision, even though Section 232 duties may not apply.
Duty Rates and Chapter 99
- 100% duty: Patented pharmaceutical products, unless they qualify for reduced country-specific rates (9903.04.60). This rate reflects the combined Column 1 and Section 232 duty rate.
- 20% duty: Patented pharmaceutical products with a qualifying onshoring plan (9903.04.64). The duty rate increases to 100% beginning April 2, 2030.
- 15% duty: Products of Japan, the European Union, South Korea, Switzerland, and Liechtenstein (9903.04.62). This rate reflects the combined Column 1 and Section 232 duty rate.
- 10% duty: Products of the United Kingdom (9903.04.63).
- 0% duty: Generic pharmaceuticals, U.S.-origin pharmaceutical products, certain dosage-form products with U.S.-origin APIs, products imported by companies identified in Annex II that meet applicable eligibility requirements, and specific exempt categories (9903.04.65 through 9903.04.69).
- 0% duty: From July 31 through September 28, 2026, importers of patented pharmaceutical products from companies not listed in Annex III must still report a Chapter 99 provision (9903.04.61), even though Section 232 duties are not due during this period.
Important Considerations
- Section 232 duties are generally in addition to normal customs duties, including duties on products qualifying for preferential treatment under free trade agreements.
- Drawback is available for these duties.
- Goods admitted into a Foreign Trade Zone (FTZ) on or after the effective date must be entered in Privileged Foreign Status, preserving tariff liability upon entry into U.S. commerce.
- When multiple duty rates could apply, importers should use the lowest applicable rate.
Please reach out to your C.H. Robinson representative with any questions.
Resources
CSMS # 69395344 - GUIDANCE: Section 232 Duties on Imports of Patented Pharmaceutical Articles and Ingredients
Section 232 PharmaHTSlist FINAL.docx
Fact Sheet: President Donald J. Trump Bolsters National Security and Strengthens U.S. Supply Chains by Imposing Tariffs on Patented Pharmaceutical Products – The White House
Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients into the United States – The White House