New Section 232 duties and mandatory Chapter 99 reporting for patented pharmaceuticals plus extensive HTS splits effective July 1 and July 31, 2026.

This CSMS announces implementation of Presidential Proclamation 11020, which imposes new Section 232 duties on imports of patented pharmaceuticals and certain pharmaceutical ingredients, and ties those duties to new Chapter 99 headings 9903.04.60–9903.04.69. It also incorporates extensive July 1, 2026 484(f) HTS and Schedule B changes that split and renumber many statistical lines across agricultural, food, chemical, pharmaceutical, machinery, vehicle, and electrical products.

Section 232 pharma duties and Chapter 99 requirements

Scope: The Proclamation covers patented pharmaceutical articles and ingredients for patented pharmaceuticals (active pharmaceutical ingredients and key starting materials) classified in specified Chapter 29 and 30 HTSUS subheadings listed in U.S. note 40(c) to subchapter III of Chapter 99. Generic pharmaceuticals and their ingredients are explicitly excluded from additional Section 232 duties.

Effective dates: Additional duties apply to goods entered for consumption, or withdrawn from warehouse for consumption, as follows:

• From 12:01 a.m. ET July 31, 2026: Products of companies listed in Annex III to Proclamation 11020 become subject to Section 232 duties.
• From 12:01 a.m. ET September 29, 2026: Products of all other companies (non‑Annex III) become subject to Section 232 duties.

Mandatory Chapter 99 reporting: Regardless of company, effective July 31, 2026, all importers of goods classified under the specified Chapter 29 and 30 HTSUS lines must report an applicable Chapter 99 code from 9903.04.60–9903.04.69 on each entry. This requirement applies even where the additional duty rate is 0% (e.g., generics, U.S.-origin dosage-form products, certain onshoring/MFN arrangements, or non‑pharmaceutical articles under the same base codes).

Key Chapter 99 headings and duty rates:

• 9903.04.60 – Patented pharmaceutical articles (general rule, except where 9903.04.61 applies), as defined in U.S. note 40(c) and (d). Duty rate: 100% ad valorem (combined column 1 and Section 232). This is the default high-rate provision for covered patented pharmaceuticals.
• 9903.04.61 – Patented pharmaceutical articles that are products of all companies not specified in Annex III, entered before 12:01 a.m. ET on September 29, 2026, as defined in U.S. note 40(c) and (e). Duty rate: 0% additional ad valorem. This is a temporary zero-duty bridge for non‑Annex III companies from July 31 through September 28, 2026.
• 9903.04.62 – Patented pharmaceutical articles that are products of Japan, EU member states, South Korea, Switzerland, or Liechtenstein, as defined in U.S. note 40(c) and (f). Duty rate: 15% ad valorem (combined column 1 and Section 232). This provides a reduced Section 232 burden for specified partner economies.
• 9903.04.63 – Patented pharmaceutical articles that are products of the United Kingdom, as defined in U.S. note 40(c) and (g). Duty rate: 10% additional ad valorem.
• 9903.04.64 – Patented pharmaceutical articles subject to a qualifying onshoring plan, as defined in U.S. note 40(c) and (h)(i). Duty rate: 20% additional ad valorem initially, increasing to 100% additional ad valorem for goods entered on or after 12:01 a.m. ET April 2, 2030. Commerce has notified CBP that no companies currently qualify for this rate.
• 9903.04.65 – Pharmaceutical articles for companies listed in Annex II that have both a qualifying onshoring plan agreement with Commerce and an MFN pharmaceutical pricing agreement, as defined in U.S. note 40(c) and (h)(ii). Duty rate: 0% additional ad valorem. This heading expires January 20, 2029.
• 9903.04.66 – Drugs and pharmaceutical articles for specific uses described in U.S. note 40(c) and (h)(iii). Duty rate: 0% additional ad valorem.
• 9903.04.67 – Generic pharmaceutical articles, as defined in U.S. note 40(c). Duty rate: 0% additional ad valorem. This is the key code for generics and their ingredients.
• 9903.04.68 – Pharmaceutical products with an active pharmaceutical ingredient packaged in dosage form that is a product of the United States. Duty rate: 0% additional ad valorem.
• 9903.04.69 – Non‑pharmaceutical articles classified under the same Chapter 29 and 30 HTSUS lines (as described in U.S. note 40(i)). Duty rate: 0% additional ad valorem.

If a product is subject to more than one rate of duty under the Proclamation, the lowest applicable rate applies. Imports of U.S.-origin pharmaceutical products are not subject to the tariffs imposed by the Proclamation.

Interaction with FTAs, Chapter 98, drawback, and FTZs

• Trade agreements: For articles subject to 9903.04.60–9903.04.68 that qualify for special tariff treatment under FTAs or preference programs (general note 3(c)(i)), the Section 232 duties under these headings are collected in addition to any special rate of duty under the base HTS subheading. Brokers must therefore calculate the FTA/preference rate on the base HTS and then add the Section 232 duty from the applicable 9903.04.xx heading.

• Chapter 98: Goods entered under Chapter 98 remain eligible for those provisions, but any additional duties prescribed by Proclamation 11020 still apply. No claim may be made under any Chapter 99 provision to obtain a lower rate or duty-free treatment that would circumvent the Section 232 duties. ADD/CVD and other duties remain fully applicable.

• Drawback: Drawback is available for duties imposed under Proclamation 11020, subject to general drawback rules. Importers should ensure Section 232 duties are included in drawback calculations where appropriate.

• Foreign Trade Zones: Products described in clause (4) of Proclamation 11020 that are subject to Section 232 duties and admitted into a U.S. FTZ on or after the effective date must be admitted in privileged foreign status (unless eligible as domestic status). Upon entry for consumption, they will be subject to the applicable ad valorem duty rates based on the privileged classification.

July 1, 2026 484(f) HTS and Schedule B changes

The bulletin appends the USITC’s July 1, 2026 484(f) changes, which create, delete, or renumber numerous HTS and Schedule B statistical lines. These changes generally do not alter column 1 duty rates but do change the exact codes that must be used for classification and duty reporting. A non‑exhaustive grouping of affected areas includes:

• Agricultural and food products: New splits for organic vs non‑organic or product-specific lines, including Brussels sprouts (0704.20.0020/0040), frozen mixed vegetables (0710.90.9120/9140), grapefruit and pomelos (0805.40.6010/6090), hemp seeds and other oil seeds (1207.99.0365/0375/0392/0397), plants for perfumery/pharmaceutical/pesticidal use (1211.90.8992/8997), vegetable saps and extracts (1302.19.9145/9155), avocado oil (1515.90.8120/8140/8175/8185), sugar (1702.90.9020/9050), cocoa powder and chocolate products (multiple 1805 and 1806 lines), pasta (1902.19.2040/2050/2075/2085), prepared cereals (1904.10.0065/0075), sweet biscuits and other bakery items (1905.31.0042/0045; 1905.90.1075/1085), juices (2009.12.2510/2590; 2009.89.7067/7069; 2009.90.4020/4040), soups and broths (2104.10.0055/0065), other edible preparations (2106.90.9991–9994), organic spirits (2208.60.2030/2060; 2208.90.5030/5060), and organic vinegar (2209.00.0030/0060).

• Chemicals and drug precursors: New specific lines for MAPA (2918.30.2510/2550 and Schedule B 2918.30.0010/0090), P-2-P methyl glycidic acid (2918.99.4310/4350 and Schedule B 2918.99.2020/2095), ethylene carbonate (2920.90.5110/5150), APAA (2924.29.7110/7150 and Schedule B 2924.29.6010/6020), dimethyl sulfide (2930.90.9240/9255), 3,4-MDP-2-P methyl glycidic acid (2932.99.6110/6150 and Schedule B 2932.99.8000/8050), and several fentanyl-related precursors (2933.39.6140/6192 and Schedule B 2933.39.9060/9065).

• APIs and pharmaceuticals (Chapters 29 and 30): Numerous drug substances and medicaments receive new statistical splits, including diphenhydramine (2922.19.0910/0990), phenylephrine (2922.50.1310/1390), acetylcysteine (2930.90.4940/4945), rocuronium, tacrolimus, timolol maleate (2934.99.4720/4730/4740/4790), dexamethasone (2937.22.0010/0090), atropine (2939.79.0010/0090), doxycycline (2941.30.0010/0090), tobramycin (2941.90.1020/1025), vancomycin (2941.90.3030/3090), clindamycin (2941.90.5030/5090), and many finished medicaments in Chapter 30 (3004.10, 3004.20, 3004.31, 3004.32, 3004.39, 3004.50, 3004.90). These splits are particularly important because they intersect with the new Section 232 pharma regime and U.S. note 40 mappings.

• Enzymes and industrial inputs: New enzyme splits (3507.90.7010/7080), microcrystalline silicon wafers (3818.00.0040/0045/0050/0091 plus new statistical notes defining semiconductor vs photovoltaic wafers), separatory funnels (3926.90.9915/9920 and Schedule B equivalents), gold necklaces (7113.19.2910/2990), low-carbon silicomanganese (7202.30.0060/0090), and an amended statistical note 2 to Chapter 76 redefining aluminum can stock.

• Machinery and equipment: New or refined lines for jacketed corrugated stainless-steel tubing (8307.10.6010/6060 plus new statistical note 1), gas turbines and parts (Schedule B 8411.82.8010/8090; 8411.99.4010/4050/4090), parts of pumps including copper pump parts (8413.91.90xx series plus new statistical note 4 to Chapter 84), rotary evaporators (8419.40.0010/0090 and Schedule B equivalents), heating mantles and drum heaters (8419.89.9510/9550/9570/9590 and Schedule B equivalents), pressure washers and parts (8424.30.9010/9090; 8424.90.9010/9020), hydrogen-powered forklifts (8427.10.4010/4090 and Schedule B equivalents), machine tools (8462.11.0030; 8462.19.0030 with updated descriptions), automated laboratory machines and parts (8479.89.9510/9597; 8479.90.9510/9591 plus new statistical note 7), copper bearing housings (8483.30.8071/8079/8081/8089), inverters (8504.40.9571–9579), transformer components (Schedule B 8504.90.0030–0060), and electrolyzers (8543.30.9010/9090 and Schedule B equivalents).

• Vehicles and parts: New chassis lines for low-speed vehicles (8707.10.0030/0090 plus new statistical note 2 to Chapter 87), tonneau covers (8708.29.5150/5190), and suspension assemblies for low-speed vehicles (8708.80.1610/1690).

• Batteries and electrical: Lead-acid storage batteries (8507.20.80xx) are adjusted by deleting 8507.20.8010 and 8507.20.8091 and creating 8507.20.8092; statistical note 10 to Chapter 85 is amended to remove 8507.20.8010 from its scope.

• Furniture: Mattress supports (9404.10.0020/0050) are split from 9404.10.0000.

Compliance implications

For customs brokers and trade compliance teams, this bulletin requires:

• Immediate planning to implement the July 1, 2026 HTS changes in classification systems, ensuring obsolete statistical numbers are not used on or after that date.
• Detailed mapping of all pharmaceutical and chemical products to the updated Chapter 29 and 30 HTS lines and to the appropriate 9903.04.6x heading based on patent status, company identity (Annex III vs non‑Annex III), origin, and any qualifying onshoring or MFN pricing arrangements.
• System and process changes so that, from July 31, 2026, every covered Chapter 29/30 line on an entry automatically prompts selection of a 9903.04.6x code, even when the additional duty rate is 0%.
• Careful coordination with suppliers to obtain accurate information on patent status, producer identity, and origin, and to monitor any future Commerce determinations on qualifying onshoring plans or Annex II/III company lists.
• Adjustments to FTZ, drawback, and FTA/preference workflows to ensure Section 232 duties are correctly assessed, reported, and, where applicable, recovered.

Because these changes directly affect both classification and duty calculation for a wide range of products, including but not limited to pharmaceuticals, they are highly actionable for U.S. import operations.