07/31/2026
U.S. Imposes Additional Tariffs on Patented Pharmaceuticals and Ingredients Effective July 31, 2026
Check out this week's Customs Corner to read about U.S. Imposes Additional Tariffs on Patented Pharmaceuticals and Ingredients Effective July 31, 2026 and more!
Trade and Customs Updates
U.S. Imposes Additional Tariffs on Patented Pharmaceuticals and Ingredients Effective July 31, 2026
The United States is introducing new tariffs on certain patented pharmaceuticals and their components, following the issuance of Presidential Proclamation 11020 on April 2, 2026. These new duties target imports of patented pharmaceuticals, active pharmaceutical ingredients (APIs), and key starting materials. The tariffs take effect on July 31, 2026, for companies listed in Annex III of the Proclamation, and on September 29, 2026, for all other companies. Generic pharmaceuticals and their related ingredients are exempt from these additional duties, as detailed in the Federal Register.
Reporting Requirements for Importers
Starting July 31, 2026, all importers bringing in products under the specified HTS Chapters 29 and 30 must utilize the appropriate Chapter 99 HTSUS classifications when filing entries with U.S. Customs and Border Protection (CBP). The applicable 99 HTS can be found in the CSMS.
Implementation Timeline and Guidance
- Effective July 31, 2026: Additional duties apply to patented pharmaceuticals and ingredients from companies listed in Annex III.
- Effective September 29, 2026: Duties expand to cover all other companies’ patented pharmaceutical imports.
- From July 31 through September 28, importers from companies not listed in Annex III should file under HTSUS 9903.04.61 at a zero duty rate.
- If a product falls under multiple duty rates, the lowest applicable rate will be assessed.
- U.S.-origin pharmaceutical imports are not affected by these tariffs.
Trade Agreement and Regulatory Considerations
- The additional duties due are due on goods that qualify under FTAs.
- Goods entered under Chapter 98 remain subject Chapter 98 regulations and no Chapter 99 exemptions can be applied.
- ADD/CVD duties are still applicable.
- Drawback is eligible these duties
Foreign Trade Zone Procedures
For products subject to the new duties that are admitted into U.S. Foreign Trade Zones (FTZs) on or after the effective date, admission must be under "privileged foreign status." Such goods will be subject to applicable ad valorem rates upon entry for consumption, unless eligible for "domestic status" under 19 CFR 146.43.
For a comprehensive list of affected products and company names, refer to Annex III of the Proclamation.
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Department of Homeland Security Expands UFLPA List With New Entities Linked to Forced Labor in Xinjiang
The Department of Homeland Security (DHS) has announced an update to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, adding new companies linked to forced labor practices in the Xinjiang Uyghur Autonomous Region. Effective August 3, 2026, four entities have been included in the section 2(d)(2)(B)(ii) list, which identifies companies cooperating with the Xinjiang government to recruit, transport, transfer, harbor, or receive forced labor or members of persecuted groups such as Uyghurs, Kazakhs, and Kyrgyz. The newly listed companies are Xinjiang Communications Construction Group Co., Ltd., Xinjiang Nuziline Bio-Pharmaceutical Co., Ltd., Xinjiang Tianyun Organic Agriculture Co., Ltd., and Zhengzhou Synear Food Co., Ltd.
In addition, forty-one entities have been added to section 2(d)(2)(B)(v), which identifies facilities and companies sourcing materials from Xinjiang or participating in government labor schemes, including the “poverty alleviation” and “pairing assistance” programs, that utilize forced labor. These entities span various industries, from mining and agriculture to pharmaceuticals and textiles, and include companies such as Baiyin Nonferrous Group Co., Ltd., Chacha Food Company, Limited, Shandong Gold Mining Co., Ltd., and TBEA Co., Ltd. The full list can be found in the here.
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CPSC Fully Implements eFiling Requirements, Issues Guidance on ACE Entries Without Complete Data
CPSC officially implemented its eFiling Partner Government Agency (PGA) message set requirements on July 8, 2026, making the electronic filing of compliance certificate data mandatory for importers. However, according to the agency’s final rule and recent guidance, CBP’s ACE will still accept entries that lack a CPSC message set or have incomplete CPSC data, provided the overall CATAIR PGA message set specifications are met.
While CBP will not reject such entries—meaning no SX reject message will be issued—the CPSC may respond with an SO message reviewing or potentially rejecting the submitted CPSC data.
Importers and trade stakeholders are reminded that CPSC retains the authority to take enforcement action on any entry missing required eFiling data. For continued compliance, all parties should closely follow the latest CPSC and CBP guidance.
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CBP Announces Adjustments to Customs User Fees for Fiscal Year 2027
CBP has announced upcoming changes to certain customs user fees and their associated limitations for Fiscal Year 2027. The adjustments are mandated by the Consolidated Omnibus Budget Reconciliation Act (COBRA), in compliance with the Fixing America’s Surface Transportation Act (FAST Act), and will be implemented according to CBP regulations.
The revised fee amounts and limitations can be found in the Federal Register and are effective on October 1, 2026.
Reference:
Federal Register :: Customs User Fees To Be Adjusted for Inflation in Fiscal Year 2027
U.S. Customs and Border Protection Announces Registration Open for August Trade Enforcement Webinars
U.S. Customs and Border Protection’s (CBP) Office of Trade is hosting a pair of trade enforcement webinars in August 2026. These free quarterly sessions will train users on how to effectively report suspected trade violations and file Enforce and Protect Act (EAPA) allegations through the Trade Violations Reporting online portal.
Upcoming August 2026 Webinar Dates:
- Trade Violations Reporting (TVR) Webinar - Monday, August 10, 2026, at 1:00 p.m. ET
- Enforce and Protect Act (EAPA) Webinar - Wednesday, August 12, 2026, at 1:00 p.m. ET
Registration links for the August webinars will become available one month prior to each webinar date at https://go.dhs.gov/4i4.
Reference:
National Commodity Specialist Division (NCSD) August 2026 Webinars
The National Commodity Specialist Division, part of the Office of Trade, is launching a new series of over 30 commodity-specific educational webinars aimed at supporting both internal and external stakeholders. This year’s program, themed "The Future of Trade: Innovation and Emerging Technology," will focus on the impact of rapidly advancing technology while also offering general classification guidance to facilitate legitimate trade.
The webinars will be hosted on the WebEx platform to ensure a seamless experience, and recordings will be posted publicly at Trade Outreach Webinars | U.S. Customs and Border Protection
NCSD’s August Webinar Schedule:
Wednesday, August 5, 2026 at 1:30 p.m. ET: Into the Future with the General Rules of Interpretation – The “Into the Future with the General Rules of Interpretation” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. The webinar will provide an overview of the GRIs with a focus on using them to classify future products.
Tuesday, August 11, 2026 at 1:30 p.m. ET: Innovation in Handbags, Travel Bags, and Luggage – The “Innovation in Handbags, Travel Bags, and Luggage” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will provide an overview of innovations in handbags, travel bags, and luggage. It will also discuss classification considerations related to these products.
Thursday, August 13, 2026 at 1:30 p.m. ET: Women’s Suits and Ensembles – The “Women’s Suits and Ensembles” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will be discussing women’s suits and ensembles, the features of both, and the questions we often get on these garments. Our focus will be on Note 3 of Chapters 61 and 62.
Friday, August 14, 2026 at 1:30 p.m. ET: The Classification of Steel Bars and Rods in Chapter 72 – “The Classification of Steel Bars and Rods in Chapter 72” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar distinguishes between different types of bars and rods, including the key legal notes, product definitions, and the major headings used for classification.
Wednesday, August 26, 2026 at 1:30 p.m. ET: Mattresses and Cushions: Hybrids & More of Heading 9404 – The “Mattresses and Cushions: Hybrids & More of Heading 9404” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will cover the classification of mattresses and cushions of heading 9404 and how classification is determined for more complex items such as hybrids, pneumatic items, and bed-in-the-box items. We will examine the legal notes, previously issued rulings and court cases that guide our classification of these products.
Thursday, August 27, 2026 at 1:30 p.m. ET: Counter-Balance: Surfaces of Chapters 68 and 70 – The “Counter-Balance: Surfaces of Chapters 68 and 70” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will discuss the classification of, and AD/CVD scopes related to, manufactured surface products of Chapters 68 and 70.
Friday, August 28, 2026 at 1:30 p.m. ET: Wadding, Gauze, Bandages, and Similar Articles – The “Wadding, Gauze, Bandages, and Similar Articles” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will focus on the primary factors to consider when classifying products under heading 3005: medical use, wound treatment, the presence of pharmaceutical substances, and packing.
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CSMS # 68856484 - National Commodity Specialist Division (NCSD) July 2026 Webinars
CSMS # 69242526 - National Commodity Specialist Division (NCSD) August 2026 Webinars
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