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Protecting our Pharmaceutical Supply Chain from China Act of 2022
12/29/2022, 10:03 PM
Summary of Bill HR 7121
The main provisions of the bill include requiring the Department of Health and Human Services to conduct a comprehensive review of the pharmaceutical supply chain to identify vulnerabilities and potential risks. This review would assess the extent to which the United States relies on China for pharmaceutical products and identify strategies to reduce this dependence.
Additionally, the bill calls for increased transparency and reporting requirements for pharmaceutical companies that manufacture products in China. This includes requiring companies to disclose information about the sources of their raw materials and ingredients, as well as any potential risks associated with sourcing products from China. Furthermore, the bill includes provisions to incentivize domestic manufacturing of pharmaceutical products and medical supplies. This includes providing grants and other financial incentives to companies that invest in domestic manufacturing facilities and supply chains. Overall, the Protecting our Pharmaceutical Supply Chain from China Act of 2022 aims to strengthen the resilience of the US pharmaceutical supply chain and reduce the risks associated with relying on China for critical medications and medical supplies. By increasing transparency, incentivizing domestic manufacturing, and conducting a comprehensive review of the supply chain, the bill seeks to protect the health and safety of Americans.
Congressional Summary of HR 7121
Protecting our Pharmaceutical Supply Chain from China Act of 2022
This bill requires the federal government to maintain a registry of certain foreign-sourced drugs, prohibits federal health care programs from purchasing drugs containing ingredients manufactured in China, requires drugs to be labeled for country of origin, and offers domestic manufacturing facility tax incentives.
The Food and Drug Administration shall maintain (1) a list of foreign-sourced drugs and active ingredients that are critical for consumer health and safety, and (2) another list identifying such drugs that are produced exclusively in China or use ingredients produced in China.
The bill phases in a restriction on federal health care programs purchasing drugs with active ingredients manufactured in China. By January 1, 2024, such programs may not purchase a drug with any active ingredients from China. The Department of Health and Human Services may issue a waiver for an agency or program that is unable to meet this requirement, but no waiver may apply to drugs purchased in or after 2026.
Each drug must have labeling listing the country of origin of each active ingredient, and a drug without this labeling shall be deemed misbranded.
The bill allows 100% tax expensing for qualified pharmaceutical and medical device manufacturing property placed in service between 2020 and 2026.
