Puerto Rico Pharma Boost: Lilly Eyes Tax-Smart Drug Making in FTZ
Published Date: 2/12/2025
Notice
Summary
Lilly del Caribe in Puerto Rico wants to start making a new medicine called orforglipron using special materials that might have lower or no import taxes. This change could save money and speed up production at their Foreign-Trade Zone facility. People have until March 24, 2025, to share their thoughts on this plan.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Duty-Favored Production of Orforglipron
Lilly del Caribe asked permission to make the drug orforglipron at its Foreign-Trade Zone (FTZ) facility in Carolina, Puerto Rico. The finished orforglipron dosage form would enter duty-free, and some imported inputs are listed as duty-free or subject to a 6.5% duty rate. This change could save the company money and speed production; public comments are due March 24, 2025.
IEEPA-Linked Duty and Compliance Risk
The notice says certain materials/components could be subject to duties under Section 1702(a)(1)(B) of the International Emergency Economic Powers Act depending on their country of origin. Materials covered by that IEEPA decision must be admitted to FTZs in privileged foreign status under 19 CFR 146.41, creating a duty exposure and a specific import-status requirement for affected inputs.
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Key Dates
Department and Agencies
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