The U.S. Department of Commerce Bureau of Industry and Security (BIS) announced the initiation of investigations into the effects on U.S. national security of imports of pharmaceuticals and pharmaceutical ingredients and imports of semiconductors and semiconductor manufacturing equipment.
The basis of the investigations is Section 232 of the Trade Expansion Act of 1962. Under Section 232, the president can restrict imports of products that are found to threaten to impair national security.
On April 16, BIS published two federal register notices (pharmaceuticals, semiconductors) seeking public comment. Comments are due May 7, 2025.
Pharmaceuticals and Pharmaceutical Ingredients
The scope of the pharmaceutical investigation covers pharmaceuticals and pharmaceutical ingredients, including:
- Finished drug products
- Medical countermeasures
- Critical inputs such as active pharmaceutical ingredients
- Key starting materials, and derivative products of those items
Among other information, BIS is particularly interested in comments that address:
- Demand for pharmaceuticals and pharmaceutical ingredients in the United States
- The extent to which domestic production of pharmaceuticals and pharmaceutical ingredients can meet domestic demand
- The role of foreign supply chains, particularly of major exporters, in meeting United States demand for pharmaceuticals and pharmaceutical ingredients
- The impact of foreign government subsidies and predatory trade practices on United States pharmaceuticals industry competitiveness
- Whether additional measures, including tariffs or quotas, are necessary to protect national security
Interested parties may submit a comment in this proceeding on or before May 7, 2025 at Regulations.gov using ID BIS-2025-0022.
Semiconductors and Semiconductor Manufacturing Equipment
The scope of the semiconductor investigation covers semiconductors, semiconductor manufacturing equipment, and their derivative products, including:
- Semiconductor substrates and bare wafers
- Legacy chips
- Leading-edge chips
- Microelectronics
- SME components
Among other information, BIS is particularly interested in comments that address:
- Demand for semiconductors in the United States
- The extent to which domestic production of semiconductors can or is expected to be able to meet domestic demand
- The impact of foreign government subsidies and predatory trade practices on United States semiconductor and SME industry competitiveness
- Whether additional measures, including tariffs or quotas, are necessary to protect national security
Interested parties may submit a comment in this proceeding on or before May 7, 2025 at Regulations.gov using ID BIS-2025-0021.
Make Your Voice Heard by Filing a Comment
These investigations may yield new tariffs on some or all of the products under consideration. If your business involves the importation of pharmaceutical or semiconductor products covered in this proceeding, consider filing a comment. Diaz Trade Law can help you draft and file a comment and/or help you understand how this rule may impact your business.
Read more:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
