Proclamation 11020: Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
Proclamation 11020 imposes significant tariffs on the import of pharmaceuticals and pharmaceutical ingredients into the United States due to national security concerns. The Secretary of Commerce reported that the current levels of imports threaten the country's national security and public health by creating a heavy reliance on foreign production, especially for patented drugs and active pharmaceutical ingredients. This proclamation aims to adjust these imports through tariffs, incentives for onshoring production, and negotiations of international agreements.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Imposition of a 100 percent ad valorem duty rate on imported patented pharmaceuticals and associated ingredients.
- Introduction of a 20 percent duty rate for companies committing to onshore production for a limited time.
- Negotiation of agreements with other countries to strengthen the pharmaceutical supply chain.
Obligations
What this law requires
Secretary of Commerce and Secretary of Health and Human Services must pursue negotiations of agreements to address the threatened impairment of national security with respect to imported patented pharmaceuticals and pharmaceutical ingredients, and update the President on progress within 90 days of the proclamation date (April 2, 2026)
Importers must pay a 100 percent ad valorem duty rate on patented pharmaceuticals and associated pharmaceutical ingredients listed in Annex I, except as otherwise provided in the proclamation
Companies seeking reduced tariff rates must submit plans to the Secretary for approval regarding onshoring production of patented pharmaceuticals and pharmaceutical ingredients to qualify for the 20 percent ad valorem duty rate
Companies with approved onshoring plans must pay a 20 percent ad valorem duty rate on patented pharmaceuticals and ingredients, which shall increase to 100 percent four years after April 2, 2026
Companies must execute or negotiate agreements with the Secretary and Secretary of Health and Human Services regarding MFN pricing and onshoring of production and R&D to qualify for zero tariff rates on patented pharmaceuticals and ingredients