Calculate Your Landed Cost
Adjust values for Pharmaceutical Ingredients (API) from North Korea
How Tariffs Stack
Each layer adds to the total cost — amounts based on customs value
Full Landed Cost Breakdown
Based on a $10,000 ocean shipment (FOB value)
How the Tariff Rate is Calculated
The tariff structure for pharmaceutical ingredients (api) follows the US stacking formula: the MFN base rate of 2%. The special tariff layer (the highest of Section 122, Section 232, or bilateral rates) is 0%, which combines with the MFN base to produce a subtotal before Section 301 duties. Adding all layers yields a total tariff rate of 2%. On a customs value of $10,600.00, this translates to total duties of $212.00, plus the Merchandise Processing Fee of $36.72 and Harbor Maintenance Fee of $13.25. The total landed cost including all fees reaches $10,861.97.
Trade Context
The United States imported <$1B in goods from North Korea in 2024, making it a significant trading partner in the Asia-Pacific region. Key import categories from North Korea include coal, food, clothing garments, reflecting the country's industrial and agricultural strengths. Pharmaceutical Ingredients (API) represents an important segment of this trade relationship, with demand driven by both price competitiveness and product availability in the US market. The bilateral trade volume underscores the economic significance of tariff policy decisions affecting imports from North Korea.
What Happens When Section 122 Expires?
Section 122 does not affect imports of pharmaceutical ingredients (api) from North Korea because this product category is exempt from the Section 122 surcharge. The exemption applies to product categories deemed essential or strategically important, and it remains in effect regardless of Section 122's expiration on July 24, 2026. Importers of pharmaceutical ingredients (api) from North Korea will see no change in tariff costs when Section 122 expires.
Alternative Sourcing Countries for Pharmaceutical Ingredients (API)
Importers looking for lower tariff costs on pharmaceutical ingredients (api) may consider sourcing from China (effective rate 33.9%); Russia (effective rate 15%); Vietnam (effective rate 18%). Compared to North Korea's total effective rate of 2%, these alternatives offer potential cost savings depending on the specific product classification and applicable trade agreements. Each alternative carries its own tariff structure, so importers should calculate the full landed cost before switching suppliers.
Tariff Timeline for North Korea
Section 232 steel/aluminum tariff increased to 50%
Section 122 uniform 15% surcharge takes effect
Frequently Asked Questions
The current total tariff rate on Pharmaceutical Ingredients (API) from North Korea is 2%. This is composed of the following layers: MFN base rate: 2%. The effective tariff rate after all layers is 2%.
For a $10,000 shipment of Pharmaceutical Ingredients (API) from North Korea, you can expect to pay approximately $200.00 in total duties at the current rate of 2%. Additional fees include the Merchandise Processing Fee (MPF) and, for ocean shipments, the Harbor Maintenance Fee (HMF). The total landed cost for a $10,000 order would be approximately $10,200.00, representing an effective cost increase of 2% over the FOB price. Use our tariff calculator for precise calculations based on your specific shipment value and shipping method.
No, Pharmaceutical Ingredients (API) is exempt from the Section 122 surcharge. This product category has been granted an exemption from Section 122 duties, meaning the surcharge does not add to the tariff cost for pharmaceutical ingredients (api) from North Korea or any other country.
Section 122 does not currently apply to Pharmaceutical Ingredients (API) from North Korea, so its expiration on July 24, 2026 would not directly change the tariff cost. The current tariff rate of 2% would remain based on other applicable tariff layers. However, broader trade policy changes surrounding the Section 122 expiration could affect overall tariff structures.
For Pharmaceutical Ingredients (API), alternative sourcing countries to consider instead of North Korea include China (effective rate: 33.9%), Russia (effective rate: 15%), Vietnam (effective rate: 18%). Compared to North Korea's total effective rate of 2%, these alternatives may offer lower landed costs depending on the specific HTS classification. Use our country comparison tool to see a detailed side-by-side analysis of tariff costs.