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Public Statements

Controlled Substance Export Reform Act of 2005

By:
Date:
Location: Washington, DC


CONTROLLED SUBSTANCES EXPORT REFORM ACT OF 2005 -- (House of Representatives - July 27, 2005)

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Mr. PITTS. Mr. Speaker, as a sponsor of this legislation in the House, I rise in strong support of S. 1395. This bipartisan legislation would reform laws that govern the export of American-made pharmaceutical products, which our chairman, the gentleman from Georgia (Mr. Deal), has explained.

This really is a jobs bill that will benefit small businesses, particularly small pharmaceutical companies employing between 100 and 250 highly paid workers. Current law puts U.S. companies, particularly these small manufacturers, at significant disadvantage with their foreign competitors. Larger manufacturers, with an established foreign presence, may choose to manufacture offshore. Foreign firms do not have to worry about it. They readily export approved medical products between international drug control treaty countries without limit or restriction.

To compete, smaller U.S. companies, or those requiring specialized manufacturing plants for niche pharmaceuticals, are forced to choose between spending millions of dollars on export costs or spending millions of dollars in establishing overseas manufacturing facilities. This cost hurts smaller companies like Cephalon, back home in Pennsylvania.

The bottom line is our law ties the hands of American companies, forces them to do business elsewhere or not to do business at all. This legislation would authorize the Attorney General to permit carefully regulated pharmaceutical exports to international drug convention partner companies. The DEA would retain full authority over all shipments of controlled substances, and the bill establishes strict procedures to ensure these products are used solely for legitimate medical purposes.

Mr. Speaker, this legislation keeps jobs and capital right here at home, and removes one of the barriers to prevent the success of these small companies. I urge support of the bill; and I thank my colleague, the gentleman from Ohio (Mr. Brown), for the bipartisan effort, and I thank Chairman Deal for his leadership on the issue.

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Mr. Speaker, as the sponsor of this legislation in the House I rise in strong support of S. 1395, the Controlled Substances Export Reform Act of 2005.

This bipartisan legislation would reform laws that govern the export of American-made pharmaceutical products.

This is a jobs bill that will benefit small businesses, particularly small pharmaceutical companies employing between 100 and 250 highly paid workers.

Current law allows U.S. companies to export most controlled substances only to the immediate country where the products will be consumed.

Shipment to central sites for further distribution across national boundaries is currently prohibited.

Current law puts U.S. companies, particularly small manufacturers, at a significant disadvantage with their foreign competitors.

Larger manufacturers with an established foreign presence may choose to manufacture off-shore using existing facilities.

Foreign firms don't have to worry about it.

They readily export approved medical products between international drug control treaty countries without limit or restriction.

To compete, smaller U.S. companies and those requiring specialized manufacturing plants for niche pharmaceuticals are forced to choose between spending millions, of dollars on export costs or spending millions of dollars in establishing overseas manufacturing facilities.

This cost harms smaller companies, like Cephalon, back home in Pennsylvania.

The bottom line: Our law ties the hands of American companies and forces them to do business elsewhere-or to not do business at all.

This legislation authorizes the Attorney General to permit carefully regulated pharmaceutical exports to international drug convention partner countries.

The Drug Enforcement Administration (DEA) would retain its full authority over all shipments of controlled substances.

It establishes strict procedures to ensure these products are used solely for legitimate medical purposes.

Once enacted it would save small companies nearly 75 percent on export costs.

It would enable them to compete in the long-term in the global market. And it would help them keep jobs and capital right here at home.

An informal review of impacted U.S. exporters indicates that current law, with the cost of compliance, jeopardizes between 100-250 new U.S. jobs each time a covered product is introduced in foreign markets.

Small businesses create new jobs; they strengthen communities; they drive innovation.

The law should help them thrive, not put them at a disadvantage with foreign competitors or large corporations.

We need to make sure that we treat them fairly and give them every opportunity to succeed.

This bill removes just one of the barriers that prevent their success.

I urge support for this bill.

And continued support for our Nation's small businesses.

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