Drug Administration Law of the People's Republicof China (2019 Revision)
Passed by the Seventh Session of the StandingCommittee of the Sixth National People's Congress on 20 September 1984
First amendment by the Twentieth Session ofthe Standing Committee of the Ninth National People's Congress on 28 February 2001
First revision on 28 December 2013 pursuantto the Decision of the Standing Committee of the National People's Congress on Revisionof Seven Pieces of Legislation Including the "Marine Environmental ProtectionLaw of the People's Republic of China" passed by the Sixth Session of the StandingCommittee of the Twelfth National People's Congress
Second revision on 24 April 2015 pursuant tothe Decision on Revision of the "Drug Administration Law of the People's Republicof China" passed by the Fourteenth Session of the Standing Committee of theTwelfth National People's Congress
Second amendment by the Twelfth Session of theStanding Committee of the Thirteenth National People's Congress on 26 August 2019
Chapter 1 General Principles
Article 1 This Law is enacted for the purposesof strengthening drug administration, to ensure drug quality, protecting the public'smedication safety and legitimate rights and interests, protecting and promotingpublic health.
Article 2 This Law shall apply to drug researchand development, manufacturing, distribution and use in the People's Republic ofChina and the supervision and administration activities thereof.
Drugs referred to in the Law shall mean substancesused for the prevention, treatment and diagnosis of human diseases and intendedfor the regulation of the physiological functions of human beings, for which indication,usage and dosage are stipulated, including traditional Chinese medicine, chemicalmedicine and biological products etc.
Article 3 Drug administration shall focus onpublic health, adhere to the principle of "risk management, whole process supervision,and social co-governance", establish a scientific and strict supervision andadministration system, comprehensively improve drug quality, and ensure drug safety,efficacy and accessibility of drugs.
Article 4 The State develops both modern medicinesand traditional medicines, to give full play to their role in prevention and treatmentof diseases and in the health care.
The State protects wild crud drugs and traditionalChinese medicine resources and encourages cultivation of genuine Chinese herbalmedicine.
Article 5 The State encourages research anddevelopment of new drugs, and protects the legitimate rights and interests of citizens,legal persons and other organizations in research and development of new drugs.
Article 6 The State implements marketing authorizationholder system for drug administration. Drug marketing authorization holders shallbe responsible pursuant to the law for drug safety, efficacy and quality controllabilitythroughout the drug research and development, manufacturing, distribution and useprocess.
Article 7 The conduct of drug research and development,manufacturing, distribution, and use, shall comply with applicable laws, regulations,standards and practices, to ensure the authenticity, accuracy, integrity and traceabilityof the whole-process data.
Article 8 The drug administrative departmentunder the State Council presides over the supervision and administration of drugsthroughout the country. The relevant departments under the State Council are responsiblefor supervision and administration related to drug within their respective responsibilities.The drug administrative department under the State Council cooperates with the relevantdepartments under the State Council to implement the drug industry development plansand industrial policies developed by the state.
The drug regulatory authorities of the people’sgovernment of a province, an autonomous region, or a municipality directly underthe Central Government shall undertake the drug supervision and administration withinits administrative region. The department in charge of drug regulation under thepeople’s governments of a city or county that sets districts (hereinafter referredto as the "drug administrative department") shall be responsible for thedrug supervision and administration within its administrative region. The relevantdepartments under the local people’s governments at o r above the county level shallbe responsible for supervision and administration related to drug within their respectiveresponsibilities.
Article 9 The local people's governments ator above the county level shall be responsible for the work of drug supervisionand administration within their respective administrative regions. They shall lead,organize, and coordinate the work of drug supervision and administration withintheir respective administrative regions as well as response to drug safety emergency.They shall establish and improve the work mechanism of drug supervision and administration,and the information sharing system.
Article 10 The people's governments at or abovethe county level shall incorporate the work of drug safety into the plans for theeconomic and social development of the people at the corresponding levels, and includefunds for drug safety in their government budgets, strengthen the capacity-buildingof drug supervision, and provide safeguards for drug safety work.
Article 11 Professional drug technology institutionsestablished or designated by drug regulatory departments perform review, testing,inspection, monitoring and evaluation as required by the conduct of drug supervisionand administration according to law.
Article 12 The State establishes and improvesupon a drug traceability system. The drug administrative department of the StateCouncil shall formulate unified drug traceability standards and regulations, propelmutual communication and sharing of drug traceability information, to achieve drugtraceability.
The State establishes a pharmacovigilance systemto monitor, identify, evaluate and control adverse reactions or other adverse reactionsrelated to drug usage drug.
Article 13 The people's governments at all levelsshall strengthen the publicity and education of drug safety, and carry out the popularizationof knowledge on laws and regulations of drug safety.
The new media shall publicize knowledge on relevantlaws and regulations of drugs, and supervise unlawful acts concerning drugs by publicopinions. The publicity and reporting about drugs shall be comprehensive, scientific,objective and fair.
Article 14 Drug industry associations shallstrengthen self-discipline, establish and improve industrial standard, promote thesystem construction of industrial integrity, guide and urge enterprises to manufactureand distribute drugs according to applicable laws.
Article 15 Units and individuals that have madesignificant contributions to drug development, manufacturing, distri bution, useand supervision and administration shall be commended and rewarded by the people’sgovernment and its relevant departments at or above the county level in accordingwith relevant provisions.
Chapter 2 Drug Researchand Development and Registration
Article 16 The State supports innovation ofnew drugs which are guided by clinical value and have clear or special therapeuticeffect on human diseases, encourages research and manufacture of drugs which havenew therapeutic mechanisms, treat serious life-threatening diseases or rare diseases,and have multiple targeted systemic regulatory interventions for humans, and promotestechnological advancement for drugs.
The State encourages to utilize modern scienceand technology and traditional methods for traditional Chi nese medicine technologyresearch and development, establishes and improves a technical evaluation systemthat is applicable to traditional Chinese medicine characteristics, and promotesChinese medicine heritage and innovation.
The State takes effective measures, encouragesresearch and development and innovation of pediatric drugs, boosts development ofnew drugs, dosage forms and strengths of pediatric drugs which are in line withpediatric physiological features, and prioritizes review and approval of pediatricdrugs.
Article 17 Drug research and development activitiesshall comply with Good Laboratory Practice(GLP), and Good Clinical Practice(GCP),and ensure that the whole drug research and development process continuously comply with statutory requirements.
GLP and GCP shall be formulated by the drugadministrative department of the State Council jointly with the relevant State Councildepartments.
Article 18 Non-clinical studies for drugs shallcomply with the relevant provisions of the State, with personnel, field, equipment,instruments and management systems corresponding to the study, and ensure the authenticityof the data, documents and samples.
Article 19 For drug clinical trials application,according to the provisions of the drug administrativ e department of the StateCouncil, the applicant shall submit the relevant data, documents and samples suchas research and development methods, specification, pharmacological and toxicologicalstudy results etc truthfully, and be subject to approval by the drug administrativedepartment of the State Council. The drug administrative department of the StateCouncil shall, within 60 working days from the date of acceptance of a clinicaltrial application, decide on approval or not of the application and notify the clinicaltrial applicant; where the applicant is not notified within the stipulated period,the application shall be deemed approved. Bioequivalence study applications shallbe filed for record to the drug administrative department of the State Council.
Drug clinical trials shall be conducted at aclinical trial institution which meets the corresponding criteria. Drug clinicaltrial institutions shall be subject to record administration; detailed measuresshall be formulated by the drug administrative department of the State Council jointlywith the competent health administrative department of the State Council.
Article 20 Conducting drug clinical trials shallcomply with ethical principles, formulate a clinical trial protocol, and be subjectto review and approval by ethics committee.
The ethics committee shall establish an ethicsreview system, to ensure that the ethics review process is independent, objectiveand equitable, supervise standardized conduct of drug clinical trials, protect thelegitima te rights and interests of trial subjects, and safeguard public interest.
Article 21 Conducting a drug clinical trialshall make truthful statement and explanation to the trial subjects or their guardiansin regard to the details such as the clinical trial objective and risks, obtainan informed consent letter signedvoluntarily by the trial subject or his/her guardian,and take effective measures to protect the lawful rights and interests of the trialsubjects.
Article 22 Where safety issues or other risksare discovered during the drug clinical trial period, the clinical trial applicantshall promptly adjust the clinical trial protocol, suspend or terminate the clinicaltrial, and report to the drug administra tive department of the State Council. Wherenecessary, the drug administrative department of the State Council may order theapplicant to adjust the clinical trial protocol, suspend or terminate the clinicaltrial.
Article 23 For drugs under clinical trial whichare used for treatment of serious life-threatening diseases for which there is noeffective treatment, where it is concluded from medical observation that such drugsare beneficial and comply with ethical principles, such drug may be used withinthe clinical trial institution on other patients with the same condition upon reviewby ethics committee and obtaining informed consent.
Article 24 Drugs marketed in China shall besubject to approval by the drug administrative department of the State Council,and obtain a drug approval license, except for traditional Chinese medicinal herbsand traditional Chinese medicine preparations which are not subject to review andapproval administration. The list of traditional Chinese medicinal herbs and traditionalChinese medicine preparations shall be formulated by the drug administrative departmentof the State Council jointly with the competent traditional Chinese medicine administrativedepartment of the State Council.
Applicants for drug registration shall providetrue, adequate and credible data, documents and samples to prove the drug safety,efficacy and quality.
Article 25 The drug administrative departmentof the State Council shall organize CMC, clinical and other technical staff to reviewdrug registration application on drug safety, efficacy and quality as well as qualitymanagement, risk control and liability compensation etc; where the application meetsthe criteria, a drug approval license shall be issued.
During the review and approval, the drug administrativedepartment of the State Council shall combine the review and approval of the chemicaldrug substance, review of the excipients and primary packag ing materials with drugproduct approve the specification, manufacturing process, labeling and leaflet.
Excipients referred to in this Law shall meanthe excipients and additives used in drug manufacturing and formulation.
Article 26 For drug used for treatment of seriouslife-threatening diseases for which there is no effective treatment, as well asdrugs urgently need for public health, where the drug clinical trial data to showefficacy and predictable clinical value. it can be conditionally approved, and therelevant information should be stated in the dug registration license.
Article 27 The drug administrative departmentof the State Council shall optimize the drug review and approval work system, strengthencapability building, establish and improve upon communication, expert advisory mechanismetc, optimize the review and review and approval process, and improve the reviewand approva l productivity.
The review conclusion and rational for drugmarketing approval shall be disclosed for public supervision pursuant to the law.Commercial secrets accessed in the review and approval shall be kept confidential.
Article 28 Drugs on market shall comply withthe national drug specifications. Where the drug specifications approved by thedrug administrative department strict than the national drug specification, theapproved specification shall be implemented; where the national drug specificationis not in place, the approved drug specification shall be complied with.
The "Pharmacopoeia of the People's Republicof China" and drug specifications published by the drug administrative departmentare the national drug specifications.
The drug administrative department of the StateCouncil shall, jointly with the competent health administrative department of theState Council, organize the pharmacopoeia committee to take charge of formulationand revision of the national drug specification.
The drug testing institution set up or appointedby the drug administrative department of the State Council shall be responsiblefor calibration of national drug standard substances and references materials.
Article 29 Drug names listed in the nationaldrug specifications shall be generic drug names. Names listed as generic drug namesshall not be used as a trademark.
Chapter 3 Drug MarketingAuthorization Holder
Article 30 Drug Marketing Authorization Holder(MAH) refers to enterprises or R&D institutions which hold a drug approval license.
MAHs shall, pursuant to the provisions of thisLaw, be liable for non-clinical study, clinical trial, manufacturing and distribution,post-marketinging study, monitoring, reporting and handling of adverse reactionsof the drug product. Other organizations and individuals engaged in drug researchand development, manufacturing, distribution, storage, transportation, use activitiesetc shall abide by the corresponding liability pursuant to the law.
The legal representative and the principal responsibleperson of the MAH shall take full responsibilities for the quality of the drug products.
Article 31 The MAHs shall establish a drug qualityassurance system, and appoint specialized personnel to take charge independentlyof drug quality management.
The MAHs shall conduct the audit on the qualitymanagement system of their entrusted drug manufacturing enterprise and drug distributionenterprise on a regular basis, and supervise the entrusted enterprises to ensuretheir continuous capability on the quality assurance and quality control.
Article 32 The MAHs can either produce drugproducts by themselves or entrust a drug manufacturing enterprise for production.
The MAHs that produce a drug product by themselvesshall obtain a Drug Manufacturing Certificate in accordance with the provisionsof this Law; where a drug is contracted for production, the MAHs shall entrust aqualified drug manufacturing enterprises. An entrustment agreement and a qualityagreement shall be signed between the MAHs and the drug manufacturing enterprises.The MAHs and the entrusted manufacturing enterprises should perform their obligationsunder the agreement strictly.
The drug administrative department(s) of theState Council shall develop guidelines for drug entrusted production and qualityagreements to provide guidance and supervision for the MAHs and the entrusted manufacturersto perform obligations of the drug quality assurance.
Entrusted manufacturing of blood products, narcoticdrugs, psychotropic drugs, and medicinal toxic drugs, drug precursor chemicals isprohibited, unless otherwise stipulated by the drug administrative department(s)of the State Council.
Article 33 The MAHs shall establish a marketingrelease procedure, to conduct the inspection of drug products released by manufacturingenterprises, and the drug products can be released only after signed off by theauthorized qualified person. . Drug products which do not conform to the nationaldrug standards shall not be released.
Article 34 The MAHs can either distribute drugproducts by themselves or entrust a drug distributor for distribution. The MAHsengaged in drug retail activities shall obtain a drug supply certificate.
The MAHs engaged in distribution of drugs bythemselves shall meet the criteria stipulated in Article 52 of this Law; for entrusteddistribution, the entrusted drug distribution enterprise shall meet the criteria.An entrustment agreement shall be signed between the MAHs and the entrusted drugdistributor. The MAHs and the entrusted distributor shall perform their obligationsunder the agreement strictly.
Article 35 If the MAH, the drugmanufacturing enterprise or the drug distributor entrusts a third party tostorage and transport the drug products, an assessment should be conducted on theentrusted party’s capacities of the quality assurance and risk management. An entrustmentagreement should be signed with the entrusted party to specify the drug qualityresponsibility, operation procedures and other aspects. The entrusted party shallbe supervised by the MAHs, the drug manufacturing enterprises or the drug distributors.
Article 36 The MAHs, the drug manufacturingenterprises, the drug distributors, and the medical institutions shall establishand implement drug quality traceability systems, to guarantee the traceability ofdrug products.
Article 37 The MAHs shall establish an annualreport system, to report annually to the drug administrative department(s) underthe provinces, autonomous regions, or municipality directly under the Central Government,about the drug production and the distribution, the post-marketinging studies, andthe risk management, etc., in accordance with the regulations.
Article 38 Where the MAH is an overseas enterprise,the enterprise legal person within the territory of the People’s Republic of Chinashall be designated to fulfill the obligations of the MAH and assume the joint liabilityof the MAH together.
Article 39 The manufacturers of traditionalChinese medicine preparation shall fulfill relevant obligations of the MAH, andshall implement whole process management for the manufacturing and distributionof the preparation, establish a quality traceability system of the preparation toensure the safety, efficacy and traceability of the preparation.
Article 40 The MAHs can transfer the drug approvallicense after approval by the drug administrative department(s) of the State Council.The acquiring party should have the ability of the quality management, risk preventionand control and liability of compensation to ensure the safety and efficacy ofthe drug, and fully fulfill the obligations of the MAH according to the law.
Chapter 4 Drug Manufacturing
Article 41 Undertaking of drug manufacturingshall be subject to approval by the drug administrative department of the People'sGovernment of the province, autonomous region or municipality directly under theCentral Government at their locality, and shall obtain the Drug Manufacturing Certificate.It is not permitted to manufacture drugs without the Drug ManufacturingCertificate.
The Drug Manufacturing Certificate shall statethe expiry date and the scope of manufacturing, and be subject to review and promulgateupon expiry date.
Article 42 Undertaking of drug manufacturingshall satisfy the following criteria:
employing pharmacy technicians, engineers andthe corresponding technicians who obtain qualifications pursuant to the law;
having factory premises, facilities and hygieneenvironment that are applicable to drug manufacturing;
having the setup, staff and the requisite equipmentfor quality management and quality inspection for the drugs manufactured by themanufacturer;
having rules and regulations to ensure the qualityof drugs, and comply with the requirements of Good Manufacturing Practice whichis stipulated by the drug administrative department of the State Council pursuantto this Law.
Article 43 Undertaking of drug manufacturingshall comply with Good Manufacturing Practice, establish and improve upon a drugmanufacturing quality management system, ensure the whole drug manufacturing processcontinuously comply with statutory requirements.
The legal representative and the key person-in-chargeof a drug manufacturing enterprise shall be fully responsible for the enterprise'sdrug manufacturing activities.
Article 44 The drug shall be manufactured inaccordance with the national drug standards and the manufacturing process approvedby the drug administrative department. The manufacturing and inspection recordsshall be complete and accurate and shall not be fabricated.
The prepared slices of Chinese crude drugs shallbe processed in accordance with national drug standards; where the national drugstandards do not stipulate, the processing shall comply with the processing normsformulated by the drug administrative department of the People's Government of theprovince, autonomous region or municipality directly under the Central Government.The processing regulations formulated by the drug administrative department of thePeople's Government of the province, autonomous region or municipality directlyunder the Central Government shall be filed to the drug administrative departmentof the State Council. Where the processing does not comply with the national drugstandards or the processing regulations formulated by the drug administrative departmentof the People's Government of the province, autonomous region or municipality directlyunder the Central Government, the prepared slices of Chinese crude drugs shall notbe released from factory and marketed.
Article 45 The drug substances and excipientsrequired in drug manufacturing shall comply with medicinal requirements and therelevant requirements of the Good Manufacturing Practice.
For drug manufacturing, shall audit the suppliersof drug substances and excipients etc pursuant to the provisions, to ensure thatthe purchased and used drug substances and excipients comply with the requirementsstipulated in the preceding paragraph.
Article 46 Packaging materials andcontainers which come into direct contact with drugs shall comply with medicinalrequirements and comply with the standards for ensuring human health and safety.
Where the packaging materials and containerswhich come into direct contact with drugs are not compliant, the drug administrativedepartment shall order the manufacturer to stop using such packaging materials andcontainers.
Article 47 Drug manufacturing enterprises shallconduct drug quality inspection. The drug product which do not comply with the nationaldrug standards shall not be released from factory.
Drug manufacturing enterprises shall establishdrug product release procedures, and specify the release standards and criteria.Where the standards and criteria are complied with, can be released only upon signatureby the Qualified Person.
Article 48 Drug packaging shall comply withdrug quality requirements, and be convenient for stor age, transportation and medicaluse.
Shipments of the Chinese herbal medicine shallbe packed. Each packaging shall state the product name, place of origin, date, supplier,and be affixed with a quality conformance mark.
Article 49 Drug packaging shall be printed oraffixed with a label and include the package insert pursuant to the provisions.
The label or package insert shall state thegeneric name, ingredient, strength, name and address of MAH, name and address ofthe manufacturing enterprise, approval number, product batch number, date of manufacturing,period of validity, indications or functions, usage, dosage, contraindication, adversereactions and precautions. The wording of the label and package insert shall beclear, and the date of manufacturing and period of validity shall be prominent anddiscernible.
The label and package insert for narcotics,psychological drugs, toxic drugs for medical use, radiative drugs, drugs for externaluse and OTC drugs shall be printed with the stipulated mark.
Article 50 Staff of MAHs, drug manufacturingenterprises, drug distributors and medical institutions who come into direct contactwith drugs shall undergo health examination annually. Persons who suffer froman infectious disease or other diseases which may cause contamination to drugs shallnot engage in work which involve direct contact with drugs.
Chapter 5 Drug Distribution
Article 51 Undertaking of drug wholesale shallbe subject to approval by the drug administrative department of the people's governmentof the province, autonomous region or municipality directly under the Central Governmentat their locality, and shall obtain a drug supply certificate Undertaking of drugretail shall be subject to approval by the drug administrative department of a people'sgovernment of county level or above at the locality, and shall obtain a drug supplycertificate. Operation of drug distribution without a drug supply certificate isprohibited.
A drug supply certificate shall state the validityperiod and the scope of business, and be subject to review and reissuance upon expiryof the validity period.
The drug administrative department implementingcertification of drug distribution shall, in addition to complying with the criteriastipulated in Article 52 of this Law, adhere to the principle of convenience ofdrug purchase for the public.
Article 52 Undertaking of drug distributionactivities shall meet the following criteria:
having legally qualified pharmacists or otherdrug technicians;
having business premises, equipment, warehousingfacilities and hygiene environment corresponding to the drug distribution;
having the quality management units or personnelcorresponding to the drug distribution; and
having rules and system to ensure drug quality,and comply with the requirements of Good Supply Practice formulated by the drugadministrative department of the State Council pursuant to this Law.
Article 53 Undertaking drug distribution activitiesshall comply with the Good Supply Practice, establish and improve the quality managementsystem for drug distribution, and ensure that the whole drug distribution processcontinuously comply with statutory requirements.
The State encourages and guides drug retailchain operation. The headquarters of a drug retai l chain business enterprise shallestablish a unified quality management system, perform management responsibilitiesfor the business activities of the retail chain enterprises.
The legal representative and the key person-in-chargeof a drug distribution enterprise shall be fully responsible for the enterprise'sdrug distribution activities.
Article 54 The State implements a classificationadministration system for preion drugs and over-the-counter drugs. Detailedmeasures shall be formulated by the drug administrative department of the StateCouncil jointly with the health administrative department of the State Council.
Article 55 MAHs, drug manufacturing enterprises,drug distribution enterprises and medical institutions shall procuredrugs froman MAH or an enterprise qualified to engage in drug manufacturing or distribution,except for procurement of traditional Chinese medicine herbs which are not subjectto approval administration.
Article 56 Drug distribution enterprises procuringdrugs for sales shall establish and implement a purchase inspection and acceptancesystem, and check the certificate of drug quality and other marks; where the stipulatedrequirements are not met, such drugs shall not be procured and sold.
Article 57 Drug distribution enterprise shallkeep authentic and complete procurement and sales records when procuring and sellingdrugs. The procurement and sales records shall state the drug generic name, dosageform, strength, batch number, shelf-life, MAH, manufacturing enterprise, procurementor sales unit, procurement or sales quantity, procurement or sales price, procurementor sales date and other contents stipulated by the drug administrative departmentof the State Council.
Article 58 Drug distribution enterprises engagingin drug retail shall state the administration, dosage and precautions accuratelyand correctly; preion for dispensing shall be verified; drugs listed in apreion shall not be arbitrar ily changed or substituted. It shall be refusedto dispense incompatible or over-dose preions; where necessary, the preionmay be dispensed only upon correction or resigning by the prescribing physician.
Drug distribution enterprises engaging in saleof traditional Chinese medicine herbs shall state the place of origin.
Pharmacists or other pharmacy technicians whohave obtained qualifications pursuant to the law shall be responsible for the enterprise'sdrug management, preion examination and dispensing, and guidance of rationaluse of drugs, etc.
Article 59 Drug distribution enterprises shallformulate and implement drug storage system, adopt the requisite refrigeration,anti-freezing, dehumidifying, insect and rodent control measures, etc. to ensuredrug quality.
Drug stock-in and stock-out shall be subjectto an examination system.
Article 60 Traditional Chinese medicine herbsmay be sold at urban and rural trade markets, unless otherwise stipulated by theState Council.
Article 61 MAHs and drug distribution enterprisesengaging in online drug sales shall comply with the relevant provisions of thisLaw on drug distribution. Detailed administrative measures shall be formulated bythe drug administrative department of the State Council jointly with the healthadministrative department of the State Council.
Drugs subject to special administration stipulatedby the State, such as vaccines, blood products, narcotic drugs, psychiatric drugs,toxic drugs for medical use, radioactive drugs, drug precursor chemicals, etc. shallnot be sold online.
Article 62 Third party platform providersfor online drug sales shall file record with the drug administrative departmentof the people's government of the province, autonomous region or municipalitydirectly under the Central Government at their locality pursuant to the provisionsof the drug administrative department of the State Council.
Third party platform providers shall examinethe qualifications of MAHs and drug distribution enterprises applying to operateon their platform, ensure that they comply with statutory requirements, and managedrug distribution activities carried out on their platform.
Where a third party platform provider discoversthat an MAH or a drug distribution enterprise operating on its platform hascommitted a violation of this Law, it shall promptly stop the offence and forthwithreport to the drug administrative department of the county people's government atits locality; where the offence is a serious violation, the third party platformprovider shall forthwith cease to provide the online transaction platform service.
Article 63 Newly-discovered and overseas-introducedherbs may be sold only upon approval by the drug administrative department of theState Council.
Article 64 Drugs shall be imported from approveddrug-importing ports, and the drug-importing enterprise shall file record with thedrug administrative department at the locality of the port. The customs shall processcustoms clearance formalities with the import drug customs clearance form issuedby the drug administrative department. Where there is no import drug customs clearanceform, the customs shall not release the cargo.
The drug administrative department at the localityof the port shall notify the drug control institute to conduct spot inspection onthe imported drugs pursuant to the provisions of the drug administrative departmentof the State Council.
The approved drug-importing ports shall be proposedby the drug administrative department of the State Council jointly with the GeneralAdministration of Customs, and subject to approval by the State Council.
Article 65 Where a medical institution has urgentclinical needs for small quantities of imported drugs, such drugs may be importedupon approval by the drug administrative department of the State Council or thepeople's government of the province, autonomous region or municipality directlyunder the Central Government authorized by the State Council. Imported drugs shallbe used for specific medical purposes within designated medical institutions.
Small quantities of drugs brought into Chinaby individuals for personal use shall be handled pursuant to the relevant provisionsof the State.
Article 66 Importers and exporters of narcoticdrugs and psychiatric drugs within the scope stipulated by the State shall presentthe importation permit or exportation permit issued by the drug administrative departmentof the State Council.
Article 67 Importation of drugs with unclearefficacy, significant adverse reactions or otherwise harmful to human health isprohibited.
Article 68 The drug administrative departmentof the State Council shall appoint a drug control institute to inspect the followingdrugs prior to sales or importation; drugs which have not been inspected or do notpass inspection shall not be sold or imported:
drugs sold in China for the first time;
biological products stipulated by the drug administrativedepartment of the State Council; and
any other drugs stipulated by the State Council.
Chapter 6 PharmacyAdministration of Medical Institutions
Article 69 Medical institutions shall employpharmacists or other drug professionals who obtain qualifications pursuant to thelaw to take charge of the medical institution's drug management, checking and dispensingof preions, medication guidance etc. No one who is not a drug professionalshall engage directly in pharmacy technical work.
Article 70 Medical institutions procuring drugsshall establish and implement a purchase inspection and acceptance system, to inspectthe qualification certificates and other marks of the drugs; where the stipulatedrequirements are not satisfied, such drugs shall not be procured and used.
Article 71 Medical institutions shall have premises,equipment, warehousing facilities and hygiene environment corresponding to use ofdrugs, formulate and implement a drug storage system, and adopt the requisite refrigeration,anti-freezing, dehumidifying, insect and rodent control measures etc, to ensurethe quality of drug.
Article 72 Medical institutions shall adhereto the principle of safe, effective, economical and reasonable medication, complywith the drug clinical application guidelines, clinical diagnosis and treatmentguide and drug package insert etc for rational use of drugs, and review the suitabilityof physician preion and medication orders.
Non-medical institutions using drugs shall complywith the relevant provisions on use of drugs by medical institutions in this Law.
Article 73 When dispensing preions, pharmacistsor other drug professionals who obtained qualifications pursuant to the law shallcheck the preion, and shall not arbitrarily change or substitute the drugslisted in the preion. For preions with drug incompatibilities or overdose,the pharmacist shall refuse to dispense; when necessary, the pharmacist may dispensethe preion only after the prescribing physician corrects the preionor signs again.
Article 74 Medical institutions engaging inpreparing drug preparations shall be subject to approval by the drug administrativedepartment of the People's Government of the province, autonomous region or municipalitydirectly under the Central Government at their locality, and obtain a medical institutionpreparation permit. Preparation of drug preparation without a medical institutionpreparation permit is prohibited.
A medical institution preparation permit shallstate the validity period, and be subject to review and reissuance upon expiry ofthe validity period.
Article 75 Medical institutions engaging inpreparing drug preparations shall have facilities, management system, inspectionequipment and hygiene environment which can ensure formulation quality.
Preparation of drug preparations by medicalinstitutions shall be carried out in accordance with the approved process, the requiredactive drug ingredients, excipients and packaging materials etc shall comply withmedicinal requirements.
Article 76 The drug preparation prepared bya medical institution shall be ones that are to meet the clinical need of theinstitutionbut not available in the market, and shall be subject to approval by the drug administrativedepartment of the People's Government of the province, autonomous region or municipalitydirectly under the Central Government at the locality, unless otherwise specifiedby the laws for the preparation of traditional Chinese medicine preparations.
The drug preparations prepared by a medicalinstitution shall be subject to quality inspection pursuant to the provisions; uponpassing inspection, the formulations shall be used in the medical institution itsown in accordance with physician preions. Upon approval by the drug administrativedepartment of the State Council or the drug administrative department of the People'sGovernment of the province, autonomous region or municipality directly under theCentral Government, the drug preparation prepared by the medical institution maybe allocated and used by other designated medical institutions.
Drug preparation prepared by medical institutionsshall not be sold on the market.
Chapter 7 Drug Post-marketingManagement
Article 77 MAH shall formulate drug post-marketingrisk management plan, take the initiative to carry out drug post- marketing study,to further confirm the safety, efficacy and quality controllability of the drugs,and strengthen continuous management of drugs launched to market.
Article 78 For drugs given conditional approval,the MAH shall adopt the corresponding risk management plan, and complete the relevantstudy within the stipulated period in accordance with the requirements; where theMAH is unable to complete the study within the stipulated period in accordance withthe requirements or is unable to prove that the benefits outweigh the risks, thedrug administrative department of the State Council shall handle the matter pursuantto the law, and may revoke the Drug approval license.
Article 79 Changes in the drug manufacturingprocess shall be subject to administration by classifications in accordance withthe risks and impact of the change on drug safety, efficacy and quality controllability.Major changes shall be subject to approval by the drug administrative departmentof the State Council, other changes shall be subject to filing or reporting to thedrug administrative department of the State Council.
MAH shall, pursuant to the provisions of thedrug administrative department of the State Council, conduct comprehensive evaluationand validation of the changes impact on drug safety, efficacy and quality controllability.
Article 80 MAH shall conduct adverse reactionsmonitoring of marketed drug, take the initiative to coll ect, track and analyzeinformation on suspected adverse reactions to the drugs, and promptly adopt riskcontrol measures for drugs for which risks are identified.
Article 81 MAH, drug manufacturing enterprises,drug distributors and medical institutions sh all regularly inspect the quality,efficacy and adverse reactions of drugs manufactured, distributed and used by them.Cases of suspected adverse reactions shall be promptly reported to the drug administrativedepartments and the competent health administrative authority. Detailed measuresshall be formulated by the drug administrative department of the State Council jointlywith the competent health administrative department of the State Council.
For drugs for which serious adverse reactionsare confirmed, the drug administrative department of the State Council or the drugadministrative department of the People's Government of the province, autonomousregion or centrally - administered municipality shall adopt emergency control measuresin accordance with the actual conditions to stop manufacturing, sale and use etc,and shall organize evaluation within five days, and issue an administrative handlingdecision within 15 days from the date of the evaluation conclusion pursuant to thelaw.
Article 82 Where drugs have quality issues orother potential safety concerns, MAH shall immediately stop selling, notify therelevant drug distributors and medical institutions to stop sales and use, recallsold drugs, promptly announce recall information, forthwith stop manufacturing wherenecessary, and report drug recall and handling situation to the drug administrativedepartment and the health administrative department of the People's Government ofthe province, autonomous region or centrally-administered municipality. The drugmanufacturing enterprise, drug distributors and medical institutions shall cooperate.
Where the MAH does not recall the drugs accordingto law, the drug administrative department of the People's Government of the province,autonomous region or centrally-administered municipality shall order the MAH torecall the drugs.
Article 83 MAH shall conduct regular post-marketingevaluation of the safety, efficacy and quality controllability of the drugs launchedto market. Where necessary, the drug administrative department of the State Councilmay order the MAH to conduct post-marketing evaluation or directly organize post-marketingevaluation.
Upon evaluation, the Drug approval license ofdrugs with unclear efficacy, significant adverse reactions or otherwise harmfulto human health shall be revoked.
Where the drug approval license is revoked,the drugs shall not be manufactured or imported, sold and used.
Drugs which the Drug approval license is revokedor drug is expired, etc. shall be destroyed or decontaminated pursuant to the lawunder the supervision of the drug administrative departments.
Chapter 8 Drug Pricingand Advertising
Article 84 The State improves upon the drugprocurement administration system, monitors drug pricing, conducts costs and pricinginvestigation, strengthens supervision and inspection of drug pricing, investigatesand deals with illegal drug pricing acts such as price monopolies, bull campaignsetc, and safeguards drug pricing order.
Article 85 For drugs subject to market-adjustedpricing pursuant to the law, MAH, drug manufacturing enterprises, drug distributionenterprises and medical institutions shall formulate pricing in accordance withthe principles of "fairness, reasonableness, honesty and integrity, quality-pricematch", and provide reasonably-priced drugs to drug users.
MAHs, drug manufacturing enterprises, drug distributionenterprises and medical institutions shall comply with the provisions of the competentdrug pricing administrative department of the State Council on administration ofdrug pricing, formulate and state drug retail prices, and shall not commit profiteering,price monopoly and price fraud etc.
Article 86 Drug MAHs, drug manufacturing enterprises,drug distribution enterprises and medical institutions shall provide informationon actual procurement and sale prices and procurement and sale quantities of thedrugs pursuant to the law to the competent drug pricing administrative department.
Article 87 Medical institutions shall providepatients with the price list of drugs used by them, announce the prices of commonly-useddrugs truthfully pursuant to the provisions, and strengthen management of reasonabledrug use. Detailed measures shall be formulated by the competent health administrativedepartment of the State Council.
Article 88 Drug MAHs, drug manufacturing enterprises,drug distribution enterprises and medical institutions shall not give or receiverebates or other improper gains in procurement and sale of drugs.
Drug MAHs, drug manufacturing enterprises, drugdistribution enterprises or their agents shall not give monies or other impropergains under any pretext to the person(s)-in-charge, drug procurement staff, physicians,pharmacists etc of medical institutions using their drugs. The person(s)-in-charge,drug procurement staff, physicians, pharmacists etc of medical institutions shallnot receive monies or other improper gains under any pretext from drug MAHs, drugmanufacturing enterprises, drug distribution enterprises or their agents.
Article 89 Drug advertisements shall be subjectto approval by the advertisement examination authorities determined by the People'sGovernment of the province, autonomous region or municipality directly under theCentral Government at the locality of the advertiser; drug advertisements shallnot be published without approval.
Article 90 The contents of drug advertisementsshall be true and legitimate, shall be based on the literature of the drug approvedby the drug administrative department of the State Council, and shall not containfalse information.
Drug advertisements shall not assert or guaranteeefficacy or safety of the advertised drug; shall not make use of the name or image of State agencies, research institutes, academicinstitutions, industry associations or experts, academicians, physicians, pharmacists,patients etc for recommendation or endorsement.
Non-drug advertisement shall not involve advertisingof drugs.
Article 91 For drug pricing and advertisingmatters not stipulated in this Law, the provisions of the Pricing Law of the People'sRepublic of China, the Anti-monopoly Law of the People's Republic of China, theLaw of the People's Republic of China Against Unfair Competition, the AdvertisingLaw of the People's Republic of China etc shall apply.
Chapter 9 Drug Reserveand Supply
Article 92 The State implements a drug reservesystem by the establishment of Central and local drug reserves.
In the event of serious disasters, epidemicoutbreaks or other emergencies, urgent drug deployment may be carried out pursuantto the provisions of the Emergency Response Law of the People's Republic of China.
Article 93 The State implements essential drugssystem, to select essential drugs of appropriate quantities, strengthen the organizingof manufacture and reserve, improve the supply capacity for essential drugs, andsatisfy basic medication needs for disease prevention and treatment.
Article 94 The State establishes a drug supplymonitoring system, to promptly gather, compile and analys is the supply informationof shortage drug, implement advance warning for shortage drug, and adopt countermeasures.
Article 95 The State implements a list administrationof shortage drug. Detailed measures shall be formulated by the competent healthadministrative department of the State Council jointly with the drugadministrative department of the State Council etc.
Where a MAH stops to manufacture the shortagedrug, it shall be reported to the drug administrative department of the State Councilor the drug administrative department of the People's Government of the province,autonomous region or municipality directly under the Central Government.
Article 96 The State encourages the research,development and manufacture of shortage drug, and implements priority review andapproval for the shortage drug for urgent clinical needs, or the new drugs for preventionand treatment of serious infectious diseases and rare diseases etc.
Article 97 The State Council may restrict orprohibit exportation of shortage drug. Where necessary, the relevant State Councildepartments may adopt measures such as organizing the manufacture, implementingprice intervention, or expanding importation etc to secure drug supply.
The drug marketing authorization holder, drugmanufacturing enterprises and drug distribution enterprises shall ensure drug manufactureand supply pursuant to the provisions.
Chapter 10 Supervisionand Administration
Article 98 Manufacturing (including preparation,same hereinafter), sale or use of fake drugs and inferior drugs are prohibited.
Any of the following circumstances shall bedeemed as fake drugs:
the ingredients in the drugs are not compliantwith the ingredients stipulated in the national drug standards;
a non-drug substance is simulated as a drugor one drug is simulated as another;
deteriorated drugs; or
the indications stated for the drugs exceedthe stipulated scope.
Any of the following circumstances shall bedeemed as inferior drugs:
the contents of the drugs are not compliantwith the contents stipulated in the national drug standards;
contaminated drugs;
drugs for which the validity period is not statedor the validity period is altered;
drugs for which the product batch number isnot stated or the product batch number is altered;
the validity period of the drugs has expired;
drugs with unauthorized addition of preservativesor excipients; or
any other drugs which do not comply with thedrug standards.
Manufacturing or importation of drugs withouta drug approval certificate is prohibited; use of active drug ingredients, packagingmaterials and containers which have not been reviewed and approved pursuant to theprovisions for drug manufacturing is prohibited.
Article 99 The drug administrative departmentsshall, pursuant to the provisions of laws and regulations, supervise and inspectdrug research and development, manufacturing, distribution and drug use by organizationsetc, and where necessary, conduct extended inspection on organizations and individualsproviding products or services for drug research and development, manufacturing,distribution and use; the relevant organizations and individuals shall cooperate,and shall not refuse or conceal information.
The drug administrative departments shall implementfocused supervision and inspection for high-risk drugs.
Where there is evidence to prove that thereare safety hazards, the drug administrative departments shall, based on supervisionand inspection findings, adopt measures such as issue a warning, schedule an interview,order the entity to make correction within a stipulated period, suspend manufacturingand sale, use, importation etc, and shall promptly announce inspection and handlingoutcome.
When conducting supervision and inspection,the drug administrative departments shall present their credentials, andkeep confidentialityof commercial secrets which have come into their knowledge during supervision andinspection.
Article 100 The drug administrative departmentsmay, based on supervision and administration needs, inspect the drug quality ofrandom samples. Random samples shall be taken pursuant to the provisions for inspection,and no fees shall be collected for inspection; random samples are required to bepurchased. The requisite expenses shall be reimbursed pursuant to the provisionsof the State Council.
Where there is evidence to prove that the drugsand the relevant materials thereof may harm human health, the drug administrativedepartments may seize or confiscate the drugs, and shall issue an administrativehandling decision within seven days; where there is a need to inspect the drugs,an administrative handling decision shall be issued within 15 days from issuanceof the inspection report.
Article 101 The State Council and the drug administrativedepartments of People's Governments of provinces, autonomous regions and municipalitydirectly under the Central Government shall announce the drug quality findings ofrandom samples inspected on a regular basis; where the announcement is improper,correction shall be made within the scope of the original announcement.
Article 102 A party concerned who disagreeswith the drug inspection findings may apply to the original drug inspection agencyor the drug inspection agency established or appointed by the higher- level drugadministrative departments for review within seven days from receipt of the druginspection findings, and may apply directly to the drug inspection agency establishedor appointed by the drug administrative department of the State Council for review.The drug inspection agency which accepts the application for review shall issuea review conclusion within the timeframe stipulated by the drug administrative departmentof the State Council.
Article 103 The drug administrative departmentsshall inspect compliance with GMP, GSP, GLP, GCP by MAHs, drug manufacturing enterprises,drug distribution enterprises, drug non-clinical safety evaluation research institutes,drug clinical trial organizations etc, and supervise these entities to continuouslycomply with statutory requirements.
Article 104 The State establishes a professionaland specialized team of drug inspectors. The inspectors shall be familiar with druglaws and regulations, and have professional knowledge in drugs.
Article 105 The drug administrative departmentsestablishes a drug safety credit record for MAHs, drug manufacturing enterprises,drug distribution enterprises, drug non-clinical safety evaluation research institutes,drug clinical trial organizations and medical institutions, to record issuance ofpermits, regular supervision and inspection findings, investigation and handlingof illegal acts etc, announce to the public pursuant to the law and promptly updaterecords; increase supervision and inspection frequency for entities with poor creditrecords, and may implement joint punishment pursuant to the provisions of the State.
Article 106 The drug administrative departmentsshall announce their email address and hotline number to accept enquiries, complaints,reports, and shall promptly reply, verify and handle enquiries, complaints, reportspursuant to the law. For verified reports, the informants shall be rewarded pursuantto the relevant provisions.
The drug administrative departments shall keepthe identity information of informants confidential and protect the legitimate rightsand interests of informants. Where an informant lodges a report against his/heremployer, the employer shall not retaliate against the informant by way of rescission,amendment of his/her labour contract or otherwise.
Article 107 The State implements a unified announcementsystem for drug safety information. General information on national drug safety,drug safety risk warning information, and serious drug safety incidents, as wellas information on investigation and handling thereof and other information requiredby the State Council to be announced on a unified basis, shall be announced by thedrug administrative department of the State Council on a unified basis. Drug safetyrisk warning information, serious drug safety incidents and information on investigationand handling thereof which have an impact on specific region may be announced bythe drug administrative department of the People's Government of the relevant province,autonomous region or -municipality directly under the Central Government. Unauthorizedannouncement of the aforesaid information is prohibited.
Announcement of drug safety information shallbe timely, accurate, comprehensive, and accompanied by necessary explanation toavoid misleading.
No organization or individual shall fabricateor disseminate false drug safety information.
Article 108 People's Governments of county leveland above shall formulate emergency plan for drug safety incidents. MAHs, Drug manufacturingenterprises, Drug distribution enterprises and medical institutions etc shall formulatetheir action plan for handling drug safety incidents, and organize and conduct trainingand drills.
Upon occurrence of a drug safety incident, aPeople's Government of county level and above shall forthwith organize countermeasuresin accordance with the emergency plan; the relevant organization shall forthwithadopt effective measures to handle the matter and prevent escalation.
Article 109 Where a drug administrative departmentfails to discover systemic risks of drug safety promptly or fails to eliminate drugsafety hazards within their supervision and administration region promptly, thePeople's Government or the drug administrative department of the higher-level People'sGovernment shall schedule an interview with the person- in-charge of the drug administrativedepartment.
Where a local People's Government fails to performdrug safety duties or fails to eliminate regional serious drug safety hazards promptly,the higher-level People's Government or the drug administrative department of thehigher-level People's Government shall schedule an interview with the person-in-chargeof the local People's Government.
The department and the local People's Governmentshall forthwith adopt measures to rectify drug supervision and administration work.
The scheduled interview and the rectificationshall be included in the drug supervision and administration work review and appraisalrecords of the relevant department and the local People's Government.
Article 110 A local People's Government andits drug administrative departments shall not use means such as requiring implementationof drug inspection, examination and approval etc to restrict or exclude drugs ofnon-local MAHs or drug manufacturing enterprises from entering the locality.
Article 111 The drug administrative departmentsand the professional technical organizations for drugs established or appointedby the drug administrative departments shall not participate in drug manufacturingand business activities, and shall not recommend or supervise drug manufacturingand sale in their capacity.
Staff of the drug administrative departmentsand the professional technical organizations for drugs established or appointedby the drug administrative departments shall not participate in drug manufacturingand business activities.
Article 112 Where the State Council has otherspecial administrative provisions on narcotic drugs, psychiatric drugs, toxic drugsfor medical use, radioactive drugs, pharmaceutical precursor chemicals etc, suchprovisions shall prevail.
Article 113 Upon discovery of a drug violationwhich allegedly constitutes a criminal offence, the drug administrative departmentsshall promptly forward the case to the public security authorities.
Where it is not necessary to pursue criminalliability pursuant to the law or criminal punishment is not required pursuant tothe law, but it is necessary to pursue administrative liability, the public securityauthorities, the People's Procuratora te and the People's Court shall promptly forwardthe case to the drug administrative departments.
Where the public security authorities, the People'sProcuratorate and the People's Court seek assistance from the drug administrativedepartments, the ecological environment administrative authorities etc to provideinspection conclusion and confirmation opinion as well as decontamination of theinvolved drugs etc, the relevant authorities shall promptly provide and assist.
Chapter 11 Legal Liability
Article 114 Where a violation of the provisionsof this Law constitutes a criminal offence, criminal liability shall be pursuedin accordance with the law.
Article 115 Offenders who engage in drug manufacturingand sale without obtaining a drug manufacturing Certificate, drug business permitor medical institution preparation permit shall be ordered to close down, the drugsand illegal income from the illegal manufacturing and sale shall be confiscated,and a fine ranging from 15 times to 30 times of the value of the drugs from theillegal manufacturing and sale (including sold and unsold drugs, same hereinafter)shall be imposed simultaneously; where the value of the drugs is less than RMB100,000,the fine shall be computed in accordance withRMB100,000.
Article 116 For manufacturing and sale of fakedrugs, the drugs and illegal income from the illegal manufacturing and sale shallbe confiscated, and the offender shall be ordered to suspend manufacturing and distributionand make correction, the drug approval certificate shall be revoked, and a fineranging from 15 times to 30 times of the value of the drugs from the illegal manufacturingand sale shall be imposed simultaneously; where the value of the drugs is less thanRMB100,000, the fine shall be computed in accordance with RMB100,000; in seriouscases, the drug manufacturing permit, drug business permit or medical institutionpreparation permit shall be revoked, and the drug administrative authorities shallnot accept an application from the offender within the next 10 years; where thedrug marketing permit holder is an overseas enterprise, its drugs shall be bannedfrom importation for the next 10 years.
Article 117 For manufacturing and sale of inferiordrugs, the drugs and illegal income from the illegal manufacturing and sale shallbe confiscated, and a fine ranging from 10 times to 20 times of the value of thedrugs from the illegal manufacturing and sale shall be imposed simultaneously;where the value of the drugs from the illegal manufacturing and wholesale is lessthan RMB100,000, the fine shall be computed in accordance with RMB100,000; wherethe value of the drugs from the illegal retail is less than RMB10,000, the fineshall be computed in accordance with RMB10,000; in serious cases, the offender shallbe ordered to suspend manufacturing and distribution, and the drug approval certificate,drug manufacturing permit, drug business permit or medical institution preparationpermit may be revoked.
For manufacturing and sale of traditional Chinesemedicine preparations which do not comply with drug standards but there is no impacton safety or effectiveness, the offender shall be ordered to make correction withina stipulated period, and be given a warning; and may be subject to a fine rangingfrom RMB100,000 to RMB500,000.
Article 118 For manufacturing and sale of fakedrugs, or manufacturing and sale of inferior drugs where the case is serious, theincome derived by the legal representative, the principal responsible person, thepersons directly in charge and the other persons responsible from the entity duringthe period of occurrence of the illegal act shall be confiscated, a fine rangingfrom 30% to 300% of the income shall be imposed on these individuals simultaneously,and they shall be banned permanently from engaging in drug manufacturing and businessactivities and may be detained by the public security authorities for five daysto 15 days.
The active drug ingredients, excipients, packagingmaterials and manufacturing equipment used by the manufacturers for manufacturingof fake drugs or inferior drugs shall be confiscated.
Article 119 Organizations using drugs whichuse fake drugs or inferior drugs shall be punished pursuant to the provisions onsale of fake drugs and retail of inferior drugs; in serious cases, where the legalrepresentative, the principa l responsible person, the persons directly in chargeand the other persons responsible hold a medical and health practitioner certificate,the practitioner certificate shall be revoked.
Article 120 Where a person facilitates storageor transportation when he/she is or should be aware that the drugs are fakedrugs or inferior drugs or fall under item (1) to item (5) of the first paragraphof Article 124 of this Law, all storag e and transportation income shall be confiscatedand a fine ranging from one to five times the amount of illegal income shall beimposed simultaneously; in serious cases, a fine ranging from five to 15 times theamount of illegal income shall be imposed simultaneously; where the amount of illegalincome is less than RMB50,000, the fine shall be computation in accordance withRMB50,000.
Article 121 The punishment decision on fakedrugs or inferior drugs shall state the quality inspection conclusion of the druginspection agency pursuant to the law.
Article 122 For forgery, alteration, lease,borrowing, illegal sale and purchase of permit or drug approval certificate, illegalincome shall be confiscated and a fine ranging from one to five times the amountof illegal income shall be imposed simultaneously; in serious cases, a fine rangingfrom five to 10 times the amount of illegal income shall be imposed simultaneously,the drug manufacturing permit, drug business permit, medical institution preparationpermit or drug approval certificate shall be revoked, the legal representative,and the principal responsible person, the persons directly in charge and the otherpersons responsible shall be subject to a fine ranging from RMB20,000 to RMB200,000,banned from engaging in drug manufacturingand business activities for the next 10 years, and may be detained by the publicsecurity authorities for five days to 15 days; where the amount of illegal incomeis less than RMB100,000, the fine shall be computation in accordance with RMB100,000.
Article 123 Where an entity provides false certificate,data, materials, samples or adopts other measures to obtain a clinical trial permit,drug manufacturing permit, drug business permit, medical institution preparationpermit or drug registration certificate fraudulently, the relevant permit shallbe revoked, and it shall be banned from submitting the corresponding applicationfor the next 10 years and shall be subject to a fine ranging from RMB500,000 toRMB5 million simultaneously; in serious cases, the legal representative, the keyperson-in-charge, the directly-accountable person-in- charge and other directly-accountablepersonnel shall be subject to a fine ranging from RMB20,000 to RMB200,000, and bannedfrom engaging in drugmanufacturing and business activities for the next 10 years,and may be detained by the public security authorities for five days to 15 days.
Article 124 For any of the following violationsof this Law, the drugs and illegal income from illegal manufacturing, importationand sale as well as the active drug ingredients, excipients, packaging materialsand manufacturing equipment used specifically for illegal manufacturing shall be confiscated, andthe offender shall be ordered to suspendmanufacturing and distribution and make correction, and simultaneously be subjectto a fine ranging from 15 times to 30 times the value of the drugs which are illegallymanufactured, imported or sold; where the value of the drugs is less than RMB100,000,the fine shall be computed in accordance with RMB100,000; in serious cases, thedrug approval certificate shall be revoked, and the drug manufacturing permit, drugbusiness permit or medical institution preparation permit may be revoked; the incomederived by the legal representative, the principal responsible person, the personsdirectly in charge and the other persons responsible from the entity during theperiod of occurrence of the illegal act shall be confiscated, a fine ranging from30% to 300% of the income shall be imposed on these individuals simultaneously,and they shall be banned from engaging in drug manufacturing and business activitiesfor the next 10 years or permanently, and may be detained by the public securityauthorities for five days to 15 days:
manufacturing or importation of drugs withoutobtaining a drug approval certificate;
manufacturing or importation of drugs with afraudulently obtained drug approval certificate;
use of active drug ingredients which have notbeen reviewed and approved for drug manufacturing;
sale of drugs which has not been inspected asrequired;
manufacturing and sale of drugs prohibited bythe drug administrative department of the State Council;
fabrication of manufacturing, inspection records;or
making significant change in the drug manufacturingprocess without approval.
For sale of drugs stipulated in item (1) toitem (3) of the preceding paragraph, or use of drugs stipulated in item (1) to item(5) of the preceding paragraph by organizations using drugs, the offender shallbe punished pursuant to the provisions of the preceding paragraph; in serious cases,where the legal representative, the principal responsi ble person, the persons directlyin charge and the other persons responsible of the organization using drugs holda medical practitioner certificate, the medical practitioner certificate shall alsobe revoked.
Punishment imposed on offenders who import withoutapproval small quantities of drugs which have been legitimately launched in overseasmarket may be reduced or exempted in lesser cases.
Article 125 For any of the following violationsof this Law, the drugs and illegal income from illegal manufacturing and sale, aswell as packaging materials and containers thereof shall be confiscated, and theoffender shall be ordered to stop manufacturing and distribution and make correction,and be subject to a fine ranging from RMB500,000 to RMB5 million simultaneously;in serious cases, the drug approval certificate, drug manufacturing permit, drugbusiness permit shall be revoked, the legal representative, the principal responsibleperson, the persons directly in charge and the other persons responsible shall besubject to a fine ranging from RMB20,000 to RMB200,000 and may be banned 10 yearsor permanently from drug manufacturing and business activities:
conduct drug clinical trial without approval;
use packing materials or containers which comeinto direct contact with drugs when they have not been examined and approved fordrug manufacturing, or sell such drugs; or
use labels or packaging insert which have notbeen examined and approved.
Article 126 Unless otherwise stipulated in thisLaw, drug marketing authorization holders, drug manufacturing enterprises, drugbusiness enterprises, drug non-clinical safety evaluation research institutes,drug clinical trial organizations which do not comply with drug manufacturing qualitymanagement norms, drug business quality managementnorms, drug non-clinical study quality management norms, drug clinical trial qualitymanagement norms etc shall be ordered to make correction within a stipulated periodand be given a warning; where correction is not made within the stipulated period,a fine ranging from RMB100,000 to RMB500,000 shall be imposed; in serious cases,the offender shall be subject to a fine ranging from RMB500,000 to RMB2 million,and ordered to suspend manufacturing and distribution and make correction, and thedrug approval certificate, drug manufacturing permit, drug business permit etc maybe revoked; the drug non-clinical safety evaluation research institute, the drugclinical trial organization shall be banned from conducting drug non- clinical safetyevaluation study or drug clinical trial for the next five years, the income of thelegal representative, the principal responsible person, the persons directly incharge and the other persons responsible derived from the entity during the periodof occurrence of the illegal act shall be confiscated, a fine ranging from 10% to50% of the income shall be imposed on these individuals simultaneously, and theyshall be banned fromengaging in drug manufacturing and business activities for10 years to permanently.
Article 127 For any of the following violationsof this Law, the offender shall be ordered to make correction within a stipulatedperiod and be given a warning; where correction is not made within the stipulatedperiod, a fine ranging from RMB100,000 to RMB500,000 shall be imposed:
conduct bioequivalence test without completingfiling formalities;
during the drug clinical trial period, the clinicaltrial applicant fails to promptly adjust the clinical trial plan, suspend or terminateclinical trial, or fails to report to the drug administrative department of theState Council, upon discovery of safety issues or other risks;
fail to establish and implement a drug trackingsystem pursuant to the provisions;
fail to submit annual report pursuant to theprovisions;
fail to complete filing or reporting formalitiesfor changes in the drug manufacturing pursuant to the provisions;
fail to formulate a risk management plan afterlaunch of drugs to market; or
fail to carry out drug post-marketing launchstudy or post-marketing launch appraisal pursuant to the provisions.
Article 128 In addition to punishment for offencespertaining to fake drugs, inferior drugs pursuant to the law, where the drug packagingdoes not print or affix label, packaging insert is not included pursuant to theprovisions, or where the literature does not include the relevant information orthe stipulated mark pursuant to the provisions, the offender shall be ordered tomake correction and be given a warning; in serious cases, the drug registrationcertificate shall be revoked.
Article 129 Where a drug marketingauthorization holder, drug manufacturing enterprise, drug business enterpriseor medical institution violates the provisions of this Law in failure to procuredrugs from a drug marketing authorization holder or an enterprise which has drugmanufacturing or distribution qualification, it shall be ordered to make correction,the illegally procured drugs and the illegal income shall be confiscated, and afine ranging from 2 to 10 times the value of the illegally procured drugs shallbe imposed simultaneously; in serious cases, a fine ranging from 10 to 30 timesthe value of the drugs shall be imposed simultaneously, and the drug approval certificate,drug manufacturing permit, drug business permit or medical institution practicepermit shall be revoked; where the value of the drugs is less than RMB50,000, thefine shall be computed in accordance with RMB50,000.
Article 130 Where a drug business enterpriseviolates the provisions of this Law in failure to keep records for procurement andsale of drugs pursuant to the provisions, failure to state the usage, dosage ofretail drugs correctly, or failure to fill preions pursuant to the provisions,it shall be ordered to make correction and be given a warning; in serious cases,the drug business permit shall be revoked.
Article 131 Where a third party platform providerfor online drug transactions violates the provisions of this Law in failure to performobligations such as examination of qualification, reporting, cessation of onlinetransaction platform services etc, it shall be ordered to make correction, illegalincome shall be confiscated, and a fine ranging from RMB200,000 to RMB2 millionshall be imposed simultaneously; in serious cases, the third party platform providershall be ordered to suspend operation and make correction and be subject to a fineranging from RMB2 million to RMB5 million simultaneously.
Article 132 For importation of drugs for whicha drug registration certificate is obtained, where the importer fails to file recordswith the drug administrative authorities at the approved importing port pursuantto the provisions, it shall be ordered to make correction within a stipulated periodand be given a warning; where correction is not made within the stipulated period,the drug registration certificate shall be revoked.
Article 133 Where a medical institution violatesthe provisions of this Law in selling formulations prepared by the medical institutionon the market, it shall be ordered to make correction, the formulations and illegalincome from illegal sale shall be confiscated, and a fine ranging from two to fivetimes the value of the illegally sold formulations shall be imposed simultaneously;in serious cases, a fine ranging from five to 15 times the value of the formulations shall be imposed simultaneously; where the value of the formulations is less thanRMB50,000, the fine shall be computed in accordance with RMB50,000.
Article 134 Where a drug marketing authorizationholder fails to monitor adverse reactions to drugs or report suspected adverse reactionsto drugs pursuant to the provisions, it shall be ordered to make correctionwithin a stipulated period and be given a warning; where correction is not madewithin the stipulated period, it shall be ordered to suspend manufacturing and distributionand make correction, and be subject to a fine ranging from RMB100,000 to RMB1 millionsimultaneously.
Where a drug business enterprise fails to reportsuspected adverse reactions to drugs pursuant to the provisions, it shall be orderedto make correction within a stipulated period and be given a warning; where correctionis not made within the stipulated period, it shall be ordered to suspend manufacturingand distribution and make correction, and a fine ranging from RMB50,000 to RMB500,000shall be imposed simultaneously.
Where a medical institution fails to reportsuspected adverse reactions to drugs, it shall be ordered to make correction withina stipulated period and be given a warning; where correction is not made withinthe stipulated period, a fine ranging from RMB50,000 to RMB500,000 shall be imposed.
Article 135 Where a drug marketing authorizationholder is ordered by the drug administrative department of thePeople'sGovernment of the province, autonomous region or centrally-administered municipalityto recall drugs but refuses to do so, it shall be subject to a fine ranging fromfive to 10 times the value of the drugs to be recalled; where the value of the drugsis less than RMB100,000, the fine shall be computed in accordance with RMB100,000;in serious cases, the drug approval certificate, drug manufacturing permit or drugbusiness permit shall be revoked; the legal representative, the principal responsibleperson, the persons directly in charge and the other perso ns responsible shallbe subject to a fine ranging from RMB20,000 to RMB200,000. Where a drug manufacturingenterprise, drug business enterprise or medical institution refuses to cooperatein the recall of drugs, it shall be subject to a fine ranging from RMB100,000 toRMB500,000.
Article 136 Where the drug marketing authorizationholder is an overseas enterprise, and the enterprise legal person in China appointedby the drug marketing permit holder does not perform the relevant obligations pursuantto the provisions of this Law, the provisions of this Law on the legal liabilityof drug marketing permit holder shall apply.
Article 137 Any of the following acts shallbe subject to the heavier punishment within the range of punishment stipulated inthis Law:
passing narcotics, psychotropic substances,medicinal toxic drugs and radioactive drugs off as other drugs or vice versa;
producing or selling counterfeit or substandarddrugs of which the main users are pregnant and parturient women, infants and children;
manufacturing and sale of biological productswhich are fake drugs or inferior drugs;
manufacturing and sale of fake drugs or inferiordrugs which cause personal injuries;
repeat offence in manufacturing and sale offake drugs or inferior drugs; or
refuse or evade supervision and inspection,forgery, mutilation or concealment of the relevant evidential materials, or useseized or confiscated items without authorization.
Article 138 Where a drug inspection agency issuesfalse inspection reports, it shall be ordered to make correction and be given awarning, and the drug inspection agency shall be subject to a fine ranging fromRMB200,000 to RMB1 million simultaneously; the persons directly in charge and theother persons responsible shall be demoted, removed or dismissed pursuant to thelaw, illegal income shall be confiscated, and a fine of less than RMB50,000 shallbe imposed simultaneously; in serious cases, the inspection qualification shallbe revoked. Where the inspection conclusion issued by a drug inspection agency isuntrue and causes damages, it shall bear the corresponding compensation liability.
Article 139 Administrative punishment stipulatedin Article 115 to Article 138 of this Law shall be decided by the drug administrativedepartments of People's Governments of county level and above in accordance withdivision of work; revocation of permit or certificate shall be decided by the issuingauthorities of the permit or certificate.
Article 140 Where a drug marketing authorizationholder, drug manufacturing enterprise, drug business enterprise or medical institutionviolates the provisions of this Law in staff recruitment, the drug administrativeauthorities or the health administrative authorities shall order the drug marketingauthorization holder, drug manufacturing enterprise, drug business enterprise ormedical institution to dismiss the staff, and impose a fine ranging from RMB50,000to RMB200,000 thereon.
Article 141 Where a drug marketing authorizationholder, drug manufacturing enterprise, drug business enterprise or medical institutiongives or receives rebates or other improper gains in the drug procurement andsale process, or the drug marketing authorization holder, drug manufacturing enterprise,drug business enterprise or its agent gives monies or other improper gains to theperson(s)-in-charge, drug procurement staff, physicians, pharmacists etc of medicalinstitutions using their drugs, the market regulatory department shall confiscatethe illegal income and impose a fine ranging from RMB300,000 to RMB3 million simultaneously;in serious cases, the business license of the drug marketing authorization holder,drug manufacturing enterprise and drug business enterprise shall be revoked; thedrug approval certificate, drug manufacturing permit and drug business permit shallbe revoked by the drug administrative authorities.
Where a drug marketing authorization holder,drug manufacturing enterprise or drug business enterprise bribes State officialsin drug research and development process or drug manufacturing and distribution,the legal representative, the principal responsible person, the persons directlyin charge and the other persons responsible shall be banned permanently from engagingin drug manufacturing and business activities.
Article 142 Where the person(s)-in-charge, procurementstaff etc of a drug marketing authorization holder, drug manufacturing enterpriseor drug business enterprise receives monies or other improper gains in drug procurementand sale process from other drug marketing permit holders, drug manufacturing enterprises,drug business enterprises or their agents, the illegal income shall be confiscatedand punishment shall be imposed pursuant to the law; in serious cases, such individualsshall be banned from engaging in drug manufacturing and business activities forthe next five years.
Where the person(s)-in-charge, drug procurementstaff, physicians, pharmacists etc of a medical institution receives monies or otherimproper gains from a drug marketing authorization holder, drug manufacturing enterprise,drug business enterprise or its agent, the competent health administrative authoritiesor the medical institution shall impose punishment and confiscate the illegal income;in serious cases, their practitioner certificate shall be revoked.
Article 143 Persons who violate the provisionsof this Law in fabricating or disseminating false drug safety information, wherethe offence constitutes a violation of security administration, the public securityauthorities shall impose securityadministration punishment pursuant to the law.
Article 144 Where a drug marketing authorizationholder, drug manufacturing enterprise, drug business enterprise or medical institutionviolates the provisions of this Law and causes damages to users of their drugs,it shall bear compensation liability pursuant to the law.
Victims who suffer damages due to drug qualityissues may seek compensation from the drug marketing permit holder and the drugmanufacturing enterprise, and may also seek compensation from the drug businessenterprise and medical institution. Upon receipt of compensation claim from a victim,the entity shall compensate first; after the compensation, it may seek recoveryon the compensation pursuant to the law.
For manufacturing fake drugs or inferior drugsor engaging in sale or use of fake drugs or inferior drugs knowingly, in additionto seeking compensation, the victims or their immediate family members may alsoseek indemnity based on 10 times of the payment amount or three times of the damages;where the additional compensation amount is less than RMB1,000, it shall be roundedup to RMB1,000.
Article 145 Where a drug administrative departmentor the professional technical organization for drugs established or appointed bythe drug administrative department participate in drug manufacturing and businessactivities, it shall be ordered by its higher-level competent administrative departmentto make correction, and its illegal income shall be confiscated; in serious cases,the directly-accountable person-in-charge and other directly-accountable personnelshall be punished pursuant to the law.
Where the staff of a drug administrative departmentor the professional technical organization for drugs established or appointed bythe drug administrative department participate in drug manufacturing and businessactivities, they shall be punished pursuant to the law.
Article 146 Where a drug administrative departmentor the drug inspection agency established or appointed by the drug administrativedepartment collects inspection fees illegally for supervision and inspection ofdrugs, the relevant government department shall order it to make refund, and punishthe directly-accountable person-in-charge and other directly-accountable personnelpursuant to the law; in serious cases, the inspection qualification shall be revoked.
Article 147 Where a drug administrative departmentviolates the provisions of this Law in committing any of the following acts, therelevant permit shall be revoked, and the persons directly in charge and the otherpersons responsible shall be punished pursuant to the law:
approves drug clinical trials which do not satisfythe criteria;
issues drug registration certificates for drugswhich do not satisfy the criteria; or
issues drug manufacturing permit, drug businesspermit or medical institution preparation permit to organizations which do not satisfythe criteria.
Article 148 Where a People's Government of countylevel and above violates the provisions of this Law in committing any of thefollowing acts, the persons directly in charge and the other persons responsibleshall be given a demerit or serious demerit;
in serious cases, such individuals shall bedemoted, removed or dismissed:
conceal, delay or omit reporting of drug safetyincident or make false reporting of drug safety incident;
fail to promptly eliminate regional seriousdrug safety hazards and causes a very serious drug safety incident within theiradministrative region or recurrent serious drug safety incidents; or
incompetent performance of duties which causesserious adverse impact or serious losses.
Article 149 Where a drug administrative departmentetc violates the provisions of this Law in committing any of the following acts,the persons directly in charge and the other persons responsible shall be recordeda demerit or serious demerit; in relatively serious cases, such individuals shallbe demoted or removed; in serious cases, such individual shall be dismissed:
conceal, delay, omit or make false reportingof drug safety incident;
fail to promptly investigate and deal with adrug safety violation upon discovery of such violation;
fail to promptly discover systemic risks ofdrug safety, or fail to promptly eliminate drug safety hazards within their supervisionand administration region, resulting in serious consequences; or
fail to perform drug supervision and administrationduties, resulting in serious adverse impact or serious losses.
Article 150 Drug supervision and administrationofficers guilty of abusing official powers, corruption and practicing favoritism,dereliction of duties shall be punished pursuant to the law.
Where the directly-accountable person-in-chargeand other directly-accountable personnel of a drug administrative department commitdereliction of duties or malfeasance in the investigation and punishment of illegalacts involving fake drugs or inferior drugs, they shall be subject to heavy punishmentpursuant to the law.
Article 151 The value of goods stipulated inthis Chapter shall be computed in accordance with the pricing of the illegallymanufacturedand sold drugs; where there is no pricing, the computation shall be based on themarket prices of the same type of drugs.
Chapter 12 SupplementaryProvisions
Article 152 The cultivation, harvest and feedingof Chinese herbal medicine shall be regulated in accordance with provisions of applicablelaws and administrative regulations.
Article 153 Measures for the management of thefolk crude drugs customarily used in certain regions shall be provided by the drugadministrative department together with the competent department for traditionalChinese medicines under the State Council.
Article 154 Specific measures for enforcementof this Law by the Chinese People’s Liberation Army and Chinese Armed Police Forceshall be formulated by the State Council and Central Military Commission in accordancewith this Law.
Article 155 This Law shall be implemented witheffect from 1 December 2019.