[Federal Register Volume 61, Number 250 (Friday, December 27, 1996)]
[Notices]
[Pages 68294-68295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33014]


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INTERNATIONAL TRADE COMMISSION
[Investigation 332-376]


Advice Concerning the Addition of Certain Pharmaceutical Products 
and Chemical Intermediates to the Pharmaceutical Appendix to the HTS

AGENCY: United States International Trade Commission.

ACTION: Institution of investigation.

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EFFECTIVE DATE: December 20, 1996.

SUMMARY: Following receipt on December 18, 1996, of a request from the 
United States Trade Representative, the Commission instituted 
investigation No. 332-376, Advice Concerning the Addition of Certain 
Pharmaceutical Products and Chemical Intermediates to the 
Pharmaceutical Appendix to the Harmonized Tariff Schedule of the United 
States, under section 115 of the Uruguay Round Agreements Act (19 
U.S.C. 3524) and section 332(g) of the Tariff Act of 1930 (19 U.S.C. 
1332(g)).
    As requested by the USTR, the Commission will provide: (1) A 
summary description of the products contained in the existing 
Pharmaceutical Appendix and the modifications to be made to that 
Appendix; (2) an explanation of the relationship of the ``zero-for-
zero'' initiative, including the Pharmaceutical Appendix, to the HTS; 
and (3) estimates of current U.S. imports and, where possible, 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 Commission will submit its report to the 
USTR by January 17, 1997.

FOR FURTHER INFORMATION CONTACT: Information on general aspects of the 
study may be obtained from Elizabeth Nesbitt, Office of Industries 
(202-205-3355) or, on legal aspects, from William Gearhart, Office of 
the General Counsel (202-205-3091). The media should contact Margaret 
O'Laughlin, Office of Public Affairs (202-205-1819). Hearing impaired 
individuals are advised that information on this matter can be obtained 
by contacting the TDD terminal on (202-205-1810). A copy of the Federal 
Register notice announcing the institution of this investigation and 
the annex listing the products under consideration can be downloaded 
from the Commission's Internet server (http://www.usitc.gov or ftp://
ftp.usitc.gov) or may be obtained by contacting the Office of the 
Secretary, U.S. International Trade Commission, 500 E Street, SW, 
Washington, DC 20436, or at 202-205-1802.

BACKGROUND: During the Uruguay Round, the United States and 16 other 
major trading countries agreed to the reciprocal elimination of duties 
on approximately 7,000 pharmaceutical products and chemical 
intermediates (the latter are to be used primarily for the production 
of pharmaceuticals), and their derivatives, resulting in the ``zero-
for-zero'' initiative in pharmaceuticals. Effective January 1, 1995, 
U.S. imports of these products, as enumerated in the Pharmaceutical 
Appendix to the Harmonized Tariff Schedule of the United States (HTS), 
now enter free of duty under general note 13 to the tariff schedule. 
The 17 countries also agreed to conduct a review, at least once every 3 
years, to identify products to be added to the Pharmaceutical Appendix. 
Negotiators from several countries, including the United States, have 
recently been engaged in the first review and have reached agreement on 
the addition of 496 pharmaceutical products and chemical intermediates. 
Addition to the list would provide duty-free treatment to these 
products and their derivatives.
    According to the request letter from the USTR, a coalition of 
pharmaceutical companies from several WTO members (which the 
Pharmaceutical Research and Manufacturers of America (PhRMA) 
coordinated) submitted the initial list of candidates for addition to 
the existing Appendix to the pharmaceutical agreement. Moreover, the 
letter states that USTR consulted with the Administration's Industry 
Sector Advisory Committee-3 (ISAC-3; chemicals) throughout the 
negotiations and that this ISAC has endorsed the final list of items 
under consideration.
    Section 111(b) of the Uruguay Round Agreements Act (the Act) 
authorizes the President, subject to the consultation and layover 
requirements of section 115 of the Act, to proclaim duty-free treatment 
under the ``zero-for-zero'' initiative for additional pharmaceutical 
products to be added, such as those now under consideration. One of the 
requirements set out in section 115 is that the President obtain advice 
regarding the proposed action from the United States International 
Trade Commission.

    Issued: December 20, 1996.


[[Page 68295]]


    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 96-33014 Filed 12-26-96; 8:45 am]
BILLING CODE 7020-02-P