On September 29, 2026, U.S. Customs and Border Protection (CBP) issued updated guidance through Cargo Systems Messaging Service (CSMS) #70054007 regarding implementation of Proclamation 11020, "Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients Into the United States", dated April 2, 2026, and the September 23, 2026 Federal Register notice (91 FR 60360).
The Section 232 pharmaceutical duties became effective as follows:
- July 31, 2026, for products of companies specifically listed in Annex III of the Proclamation.
- September 29, 2026, for products of all other companies.
CBP also confirmed that when a product is subject to more than one duty rate under the Proclamation, the lowest applicable rate will apply. Chapter 98 benefits remain available when eligible under the applicable Chapter 98 provision. However, Chapter 99 provisions cannot be used to reduce, eliminate, or offset the additional Section 232 duties.
Key Changes in the Updated Guidance
- End of Transitional Filing Provision 9903.04.61
The original guidance established HTSUS 9903.04.61 as a temporary placeholder with a 0% duty rate from July 31 through September 28, 2026, for products of companies not listed in Annex III. Effective September 29, 2026, importers must classify entries under the permanent Section 232 tariff provisions rather than the transitional heading.
- Change in UK Duty Rate Under 9903.04.63
The updated guidance provides significantly more favorable treatment for certain United Kingdom-origin patented pharmaceutical products. The additional duty rate under HTSUS 9903.04.63 has been reduced from 10% to 0%.
- Clarification of Products Eligible for 9903.04.66
The updated guidance incorporates the Department of Commerce definition published in the Federal Register notice and provides clearer eligibility criteria for products originating from specified countries that may qualify for the 0% additional duty rate.
Additionally, the notice includes five technical corrections to Annex I and one technical correction to Annex IV. the 0% duty rate.
- New HTSUS Heading 9903.04.70 Added
The original guidance included HTSUS headings 9903.04.60 through 9903.04.69. The updated guidance adds HTSUS 9903.04.70, which provides a 0% additional duty rate for pharmaceutical articles and ingredients used solely for clinical trials, research and development activities, and other non-commercial applications.
Importers of pharmaceutical products should review the updated guidance carefully, particularly regarding the expiration of transitional filing provisions, revised duty treatment for certain UK-origin products, and the availability of additional duty-free classifications.
Please contact your C.H. Robinson representative with any questions.
Resources
New CBP Guidance: CSMS # 70054007 - UPDATED GUIDANCE: Section 232 Duties on Imports of Pharmaceutical Articles and Ingredients
Pharmaceutical Section 232 HTS List:
Section 232 PharmaHTSlist FINAL.docx
Original notices:
CBP Implements New Section 232 Tariffs on Patented Pharmaceuticals
Federal Register :: Guidance and Procedures for Implementing Tariff Adjustments for Specialty Pharmaceuticals and Associated Pharmaceutical Ingredients and Technical Corrections to the Harmonized Tariff Schedule of the United States for Duties Imposed Under Proclamation 11020