China to Exempt Import Tariffs on 61 Active Pharmaceutical Ingredients for Anticancer and Rare Disease Drugs

by Grace Wang Mar 08, 2021
China will remove import tariffs on 61 active pharmaceutical ingredients (APIs) for anticancer and rare disease drugs to encourage more overseas medicines to enter the Chinese market.

China will apply interim import tax rates that are lower than most-favored-nation tariffs on 883 kinds of goods from Jan. 1, 2021, according to the 2021 Tariff Adjustment Plan1 issued by the Customs Tariff Commission of the State Council on Dec. 23, 2020.

The country will remove tariffs on 61 active pharmaceutical ingredients (APIs) of anticancer drugs and rare disease drugs. The APIs include oxaliplatin, flutamide, and docetaxel for treating cancers and penicillamine, pirfenidone, riluzole, and bosentan for treating rare diseases.

Before the adjustment, these APIs are subject to the most-favored-nation tariffs, which ranges from 9%, 6.5%, 5.5%, or 4%.

A similar favorable tax policy for drug importation was just released on Sept. 30, 2020. The country would cut value-added tax to 3% on the second batch of anticancer and rare disease drugs from Oct. 1, 2020.2 A total of 39 anticancer drugs such as Dacomitinib Tablets, six APIs for anticancer drugs including fruquintinib, and 14 rare disease drugs including Teriflunomide Tablets made the list.

The 2021 tariff adjustment gives more preferential treatment for imported APIs of anticancer and rare disease drugs by directly exempting the tariffs, which undoubtedly will further reduce the trade costs of products delivered to China by overseas pharmaceutical enterprises and promote their exportation.

As China has promulgated a series of favorable policies for imported drugs, especially anticancer drugs, rare disease drugs, and innovative drugs, it tends to speed up the import of these categories of drugs. The tendency is expected to bring more opportunities for foreign companies to enter the Chinese market.

If you need more details on the 2021 tariff adjustment for import drugs or would like to consult about the Chinese pharmaceutical market, please contact BaiPharm through info@baipharm.com

Grace Wang
ChemLinked Regulatory Analyst & Editor
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