Law 360: An Underused Tariff Exemption For Medical Product Importers

Analysis by: Samuel D. Finkelstein, Associate

As shifting U.S. tariff policies continue to shake global trade dynamics, many importers facing pressure to manage rising duties have undertaken the challenging task of tariff mitigation.

Among the lesser-known but highly effective tariff mitigation tools is the Nairobi Protocol to the Florence Agreement, which provides for duty-free entry of items that are specially designed or adapted for the use or benefit of what the protocol refers to as "handicapped persons."

When tariffs were low, the special treatment under the Nairobi Protocol was not as salient, but now with potential higher tariffs, importers should consider this special provision in U.S. customs regulations to reduce their tariff liability. The scope of disabilities that constitute a "handicap" in the Nairobi Protocol context is broad and covers many conditions that are widespread in the U.S., including diabetes, mobility impairments and chronic cardiovascular diagnoses. Products that are specially designed for those afflicted with qualifying conditions under the Nairobi Protocol may be exempt from tariffs altogether.

Despite its clear benefits, the Nairobi Protocol duty exemption remains underutilized, often overlooked in favor of more complex or costly alternatives. U.S. importers — particularly those in the medical device sector — should carefully review whether their products could be exempted from duties under the Nairobi Protocol.

In the Expert Analysis published by Law360, Samuel Finkelstein, an Associate at LMD Trade Law PLLC, details how medical product importers can reduce their tariff burdens using the Nairobi Protocol duty exemption.

This analysis can be found in its entirety here.

A PDF of the analysis can be found here.

This summary is provided for informational purposes only and is not intended to constitute legal advice nor does it create an attorney-client relationship with LMD Trade Law PLLC or its affiliates.