Merck Expands Duty-Free Drug Making in New Jersey FTZ
Published Date: 9/24/2026
Notice
Summary
Merck, Sharp & Dohme LLC wants to expand its drug-making activities at its Rahway, New Jersey site inside Foreign-Trade Zone 49. They plan to add new drug products and ingredients, like cancer and neurological disease treatments, that can enter duty-free or with low duties. This move helps Merck save money on import taxes and keep making important medicines efficiently.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Merck adds drug products to FTZ duty-free
Merck plans to add specific finished drug products at its Rahway, NJ site in Foreign-Trade Zone 49 (Subzone 49Y). The proposed finished products (including immunological disorder drug product; oncology spray dried intermediate; infectious disease spray dry intermediate; deuterated neurologic disease drug product; metabolic disorders drug product; and neurologic disease spray dry intermediate) would be admitted duty free, which the company says will help it save on import taxes and continue making medicines efficiently.
Some inputs face duties up to 6.5% and 232/301 rules
The notification lists many foreign-status materials/components (various active pharmaceutical ingredients and intermediates) with duty rate ranges from duty-free up to 6.5%. It also states that certain materials/components may be subject to duties under section 232 of the Trade Expansion Act of 1962 or section 301 of the Trade Act of 1974 depending on country of origin, and those items must be admitted to FTZs in privileged foreign status as described in 19 CFR 146.41.
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