Protecting our Pharmaceutical Supply Chain from China Act of 2022

To require the Secretary of Health and Human Services to maintain a list of the country of origin of all drugs marketed in the United States, to ban the use of Federal funds for the purchase of drugs manufactured in the People’s Republic of China, and for other purposes. 1. Short title This Act may be cited as the Protecting our Pharmaceutical Supply Chain from China Act of 2022 2. Country of origin of drugs (a) In general Subchapter A of chapter V of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 351 et seq. 524B. Registry of drugs produced outside the United States (a) In general The Secretary shall compile and maintain a list of all drugs approved under subsection (c) or (j) of section 505 of this Act or licensed under subsection (a) or (k) of section 351 of the Public Health Service Act, and any active ingredients in such drugs, that— (1) are manufactured outside of the United States; and (2) are determined by the Secretary to be critical to the health and safety of consumers in the United States. (b) Additional list In conjunction with the list described in subsection (a), the Secretary shall compile and maintain a list of drugs included on such list that are exclusively produced in, or use active or inactive ingredients produced in, the People’s Republic of China. (c) Requirement The list described in subsection (a) shall, with respect to each drug included on the list, provide information about the supply chain of the drug, including each step in the supply chain that occurs prior to importation of the drug into the United States. . (b) Federal health program purchase of drugs (1) In general Notwithstanding any other provision of law, the Department of Health and Human Services, the Department of Veterans Affairs, the Department of Defense, and any other Federal health care program (as defined in section 1128B(f) of the Social Security Act (42 U.S.C. 1320a–7b(b))), with respect to the purchase of a drug by such agency or program, the following shall apply: (A) Beginning on January 1, 2023, such agency or program may purchase only drugs for which 60 percent or more of the active pharmaceutical ingredients are manufactured in countries described in paragraph (2). (B) Beginning on January 1, 2024, such agency or program may purchase only drugs for which 100 percent of the active pharmaceutical ingredients are manufactured in countries described in paragraph (2). (2) Countries described The countries described in this paragraph are countries— (A) other than the People’s Republic of China; and (B) that meet the health and safety standards of the Food and Drug Administration. (3) Waivers The Secretary of Health and Human Services may issue waivers of the requirements under paragraph (1) for any agency or program that is unable to meet such requirements and demonstrates a need for the waiver. No waiver may be issued under this paragraph for drugs that are purchased on or after January 1, 2026. (c) Labeling requirement Section 502 of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 352 (gg) If it is a drug and its labeling does not specify the country of origin of each active ingredient contained in the drug. . 3. Temporary 100 percent expensing for pharmaceutical and medical device manufacturing property (a) In general For purposes of section 168(k) (1) such property shall be treated as qualified property (within the meaning of such section), (2) the applicable percentage otherwise determined under section 168(k)(6) of such Code with respect to such property shall be 100 percent, and (3) paragraph (8) of such section shall not apply. (b) Qualified pharmaceutical and medical device manufacturing property For purposes of this section, the term qualified pharmaceutical and medical device manufacturing property 21 U.S.C. 321(g) 21 U.S.C. 321(h)

Summary: 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.