Recent announcements indicate that tariffs targeting pharmaceuticals could soon become a reality, creating significant uncertainty for businesses importing pharmaceutical products into the U.S. President Trump's latest comments suggest these tariffs could arrive shortly, complicating logistics, increasing costs, and potentially disrupting critical supply chains.
When combined with its pharmaceutical logistics expertise and capabilities, Kanban’s Foreign Trade Zone (FTZ) in Eastern North Carolina offers a vital tool for pharmaceutical companies to mitigate this uncertainty and maintain stable operations.
President Trump's recent statements about imposing new tariffs specifically on pharmaceuticals underscore the volatility companies face. These tariffs could significantly impact import costs, profitability, and operational planning for pharmaceutical businesses already navigating complex regulatory environments.
Foreign Trade Zones, also known as “free-trade zones,” are secure areas located in or near U.S. ports that operate under the supervision of U.S. Customs and Border Protection (CBP). An FTZ can be a 3PL warehouse or a dedicated facility owned and operated by a manufacturer or distributor. These zones are considered outside CBP territory for duty purposes, enabling companies to defer, reduce, or even eliminate customs duties on imported goods.
Products entering an FTZ are not subject to duties or excise taxes until they leave the zone and formally enter U.S. commerce. If products are re-exported directly from the FTZ, no duties are owed at all. Additionally, FTZs offer flexibility for businesses to store, process, or assemble goods before determining their next steps—a significant advantage when navigating unpredictable tariff changes.
Kanban’s FTZ is located in Rocky Mount, NC. It provides 175,000 square feet of temperature-controlled, food-grade warehouse space just minutes from I-95. This rail-sided campus is also home to a transload yard served by CSX.
The FTZ provides a variety of benefits for pharmaceutical importers facing potential tariff hikes, including:
Partnering with Kanban for FTZ services not only offers tariff relief but also provides pharmaceutical companies with:
At Kanban, we understand that pharmaceutical products are sensitive and require a supply chain partner that will go to great lengths to protect their safety and integrity. As an ISO 9001-certified company, we adhere to the strictest quality management measures to ensure compliance with all cGMP regulations.
Our climate-controlled pharmaceutical warehouses keep your products in spec, while our robust systems manage your inventory in accordance with manufacturer requirements.
Given the current political and economic climate, pharmaceutical tariffs could become a recurring issue. Adopting an FTZ strategy with Kanban positions pharmaceutical companies not just to react to immediate tariff threats but to proactively build resilience into their supply chains. With Kanban’s FTZ, pharmaceutical businesses can plan confidently, knowing they have a stable logistics and compliance partner to shield them from tariff volatility.
To learn more about Kanban’s pharmaceutical FTZ capabilities, contact us today. We’d be happy to show you how our FTZ can benefit your business and answer any questions you may have.