Background

The Trump administration recently announced two actions related to a May 12 executive order seeking to lower prices for prescription drugs in the U.S.

The Office of the U.S. Trade Representative is accepting comments through June 27 on any act, policy, or practice that may be unreasonable or discriminatory and has the effect of forcing U.S. patients to pay for a disproportionate amount of global pharmaceutical research and development, including by suppressing the price of pharmaceutical products below fair market value in foreign countries. Submissions should set out the foreign country or economy of concern; the act, policy, or practice of concern; any reason(s) that act, policy, or practice may be unreasonable or discriminatory, and how that act, policy, or practice has the effect of forcing U.S. patients to pay for a disproportionate amount of global pharmaceutical R&D.

Separately, noting that under the May 12 EO the Department of Health and Human Services has published price targets for prescription drugs to lower U.S. health care costs, U.S. Customs and Border Protection has issued a reminder to the trade community that declaring an incorrect value on import or export documentation submitted to CBP is considered trade evasion and that CBP will pursue any violations to the fullest extent possible.

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