Apply for pharma onshoring deals to cut Section 232 duties
The US Department of Commerce opened a 30-day window for pharmaceutical manufacturers to apply for company-specific onshoring agreements under Proclamation 11020. Approved applicants gain eligibility for reduced Section 232 duty rates on imports of their pharma products and ingredients. This targets domestic manufacturing incentives in the pharmaceutical sector.
Photo: RDNE Stock project / Pexels# Apply for pharma onshoring deals to cut Section 232 duties
The US Department of Commerce announced procedures on May 13, 2026, for pharmaceutical manufacturers to apply for company-specific onshoring agreements that unlock tariff relief on imports of their own products.
Who qualifies and what's at stake
Companies manufacturing pharmaceutical products and pharmaceutical ingredients are eligible to negotiate direct agreements with Commerce. Upon approval, applicants gain access to reduced Section 232 duty rates—a material cost reduction on import entries of their pharmaceuticals and associated raw materials.
"Companies that enter into such agreements are eligible for a reduced Section 232 duty rate for imports of their pharmaceutical products and associated ingredients." — Federal Register, May 13, 2026
Section 232 duties, historically applied to steel and aluminium under national-security justifications, have been extended to pharmaceutical supply chains. This new pathway inverts the standard tariff regime: rather than blanket rates applied to all importers, individual manufacturers can negotiate lower duties conditional on onshoring commitments.
Critical timeline
Applications must be submitted within 30 days of publication in the Federal Register (by June 12, 2026). No grace period or extension mechanism has been announced. Companies that miss this deadline lose access to the reduced-duty rates available under Proclamation 11020.
What this means for shippers
Pharmaceutical importers and contract manufacturers must act immediately: identify whether your company qualifies, gather documentation of your pharmaceutical manufacturing footprint and ingredient sourcing, and prepare your Commerce application before June 12. Missing the window locks you into standard Section 232 rates indefinitely. The cost of delay is duty overpayment on every future import. Submit your application and track its status directly with Commerce. /sanctions-screen
