Varian Medical (NYSE:VAR) said today that the U.S. Trade Representative granted it a tariff exemption for its Halcyon radiotherapy system, which would normally be subject to Section 301 tariffs due to it being manufactured in China.
The Palo Alto, Calif.-based company said that the exception will have a less than $1 million impact on its financial results for its 2019 fiscal year, and that it will provide more details on the exception during its first quarter call next month.
“On behalf of the more than three million patients Varian technologies touch each year, we thank USTR and the U.S. government for recognizing the impact of Varian’s cancer treatment technology by excluding our Halcyon product from the current trade dispute, and we are hopeful that China will do the same. Varian remains dedicated to ensuring that our customers, and the patients they treat, are able to achieve new victories against cancer without any global disruption in access to our leading-edge technologies,” prez & CEO Dow Wilson said in a press release.
Varian said that until further notice, China tariffs announced in August will remain in place, and that its exclusion application from U.S. Tariffs for components sourced from China for its linear accelerators, which it produces in the US, are still pending with the USTR.
Last month, Varian said that it won approval from China’s National Medical Product Administration for its Halcyon system.
