Bangladesh remains exempted from US tariffs on specialised medicines
The zero-tariff treatment applies to specified specialty pharmaceuticals and their ingredients, not all medicines
The United States has exempted Bangladesh and 19 other countries and regions from a 100% tariff on certain specialised medicines, preserving the existing duty-free treatment of Bangladeshi pharmaceutical exports.
Although the exemption does not provide an additional benefit to Bangladesh's pharmaceutical sector, industry stakeholders said retaining the existing duty-free facility is positive for the country's drug exporters.
The US Bureau of Industry and Security (BIS) published the list of eligible countries and regions in a notice on 23 September.
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According to the BIS notice, the tariff exemption covers orphan medicines, nuclear medicines, plasma-derived therapies, fertility drugs, cell therapy products, gene therapy products, antibody-drug conjugates, medical countermeasures related to chemical, biological, radiological and nuclear threats, and animal health products.
Rabbur Reza, chief operating officer of Beximco Pharmaceuticals, told The Business Standard that generic medicines exported from Bangladesh to the US were already not subject to import duties.
"Generic companies had no duty, and there still is none. We are still not paying any import duty. Therefore, there is no change for us at this moment," he said.
The BIS notice also states that, at present, Section 232 pharmaceutical tariffs do not apply to generic pharmaceutical products and associated ingredients.
Reza said the continued absence of tariffs was nevertheless positive for the industry, given the importance of the US market to Bangladesh's pharmaceutical exporters.
"We export quite a few of our molecules to the United States, and the lion's share of our exports goes to the United States. We are the largest exporter from Bangladesh to the United States," he said.
"If exports of Bangladesh's pharma industry are to be increased, the United States is definitely a major destination. Therefore, this is good news for Bangladesh's pharmaceutical industry not just for now, but also for the future," he added.
The US special list also includes Argentina, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, India, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland and Liechtenstein, Taiwan, Thailand, the United Kingdom and Vietnam.
The BIS said changes to the list of eligible jurisdictions may be published in a future notice.
