The U.S. International Trade Commission (USITC) has instituted a new investigation to provide information and advice to the President concerning over 700 pharmaceutical products and chemical intermediates for which the Administration is proposing to eliminate duties. The items under investigation are used primarily for the production of pharmaceuticals.

The products would be added to the Pharmaceutical Appendix to the Harmonized Tariff Schedule of the United States (HTS), which was created as part of the Uruguay Round Agreements and already covers approximately 9,500 products. The United States and 21 other major trading countries agreed during the Uruguay Round to eliminate duties on pharmaceuticals and to periodically conduct reviews to identify additional products to be covered by the initiative. If added to the Appendix, the products included in the new USITC investigation would receive duty-free treatment.

The investigation, Pharmaceutical Products and Chemical Intermediates, Fourth Review: Advice Concerning the Addition of Certain Products to the Pharmaceutical Appendix to the HTS, was requested by the U.S. Trade Representative in a letter received May 28, 2010.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will provide a summary description of the products contained in the existing Pharmaceutical Appendix and the modifications to be made to that Appendix; an explanation of the relationship between the various elements in the Appendix and the HTS; and an estimate of current U.S. imports and, where possible, current U.S. exports of the products included in the existing Pharmaceutical Appendix and the proposed additions to the Appendix, based on product groupings as necessary.

The USITC will submit its report to the USTR by September 1, 2010.

The USITC will not hold a public hearing in connection with this investigation. However, the USITC seeks written input on these products from all interested parties. Written submissions should focus on the levels of exports and imports for the items included in this investigation. Written submissions (one original and 14 copies) should be submitted at the earliest practical date but no later than 5:15 p.m. on July 14, 2010. All written submissions, except for confidential business information, will be available for public inspection. Written submissions should be addressed to the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.

Further information on the scope of the investigation is available in the USITC's notice of investigation, dated June 9, 2010, which may be obtained from the USITC Internet site (www.usitc.gov) or by contacting the Office of the Secretary at the above address or at 202-205-2000. The USTR's request letter, including the list of the proposed additions to the Pharmaceutical Appendix, is available on the USITC's web site at: http://www.usitc.gov/research_and_analysis/ongoing/332_520_request_letter.pdf.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

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