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	CIRCULAR OF THE STATE FOOD AND DRUG ADMINISTRATION ON THE RELEVANT ISSUES CONCERNING THE BUSINESS SCOPE OF THE FOREIGN-FUNDED ENTERPRISES THAT ENGAGE IN THE PRODUCTION OF HERBAL MEDICINES FOR DECOCTION

	(No. 14 [2006] of the State Food and Drug Administration, January 10, 2006)


SUBJECT : PHARMACY; PRODUCTION OF HERBAL MEDICINES; FOREIGN-FUNDED ENTERPRISES
ISSUING DEPARTMENT : THE STATE FOOD AND DRUG ADMINISTRATION¡¡
ISSUE DATE : 01/10/2006
IMPLEMENT DATE : 01/10/2006
LENGTH : 299 words
TEXT :

According to the provisions of the Catalogue of Industries for Guiding Foreign Investment (Order No. 24 of the State Development and Reform Commission of the People's Republic of China and the Ministry of Commerce of the People's Republic of China) that came into force as of January 1, 2005, "the application of preparing techniques of traditional Chinese medicine in small pieces ready for decoction and the products of secret recipe of traditional Chinese medicine already prepared" falls within the category of prohibited foreign investment industries.

According to the General Principals on Processing Medicine Materials as prescribed in the Drug Code of the People's Republic of China (2005): "The term 'processing of medicine materials' refers to that medicine materials are manufactured into herbal medicines of certain specimen for decoction upon cleaning, cutting, roasting and boiling so as to meet the requirements of medical treatment as well as mixture or preparation, and guarantee the safety and effectiveness of pharmacy." The processing of medicine materials includes cleaning, cutting, roasting and boiling. The application of preparing techniques of herbal medicines for decoction refers to the application the aforesaid processing techniques.

In order to guide the foreign investment into a direction compatible with the planning of the national economy and social development of China, the administrative departments of food and drug of all provinces (regions and municipalities) shall carry into effect the state policies and guard the pass of access for foreign-funded enterprises in a strict manner. As to any foreign-funded enterprise that has obtained approval, the administrative department of food and drug at the provincial level shall, when the relevant enterprise that engages in the production of herbal medicine for decoction resumes its Production License for Medicine, clearly indicate "cleaning and cutting" on the License so as to restrict the production scope thereof.