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Twenty-eight Government Agencies to Jointly Sanction Food and Drug Defaulters

In a bid to boost food and drug safety, 28 ministries and commissions including the National Development and Reform Commission (NDRC) and the China Food and Drug Administration (CFDA) recently signed a memorandum of co-operation to jointly sanction serious defaulters in the food and drug sector.    

The memorandum takes a step further the establishment of a credit information system and a sound mechanism of joint sanctions on defaulters, according to a government statement.

The joint sanctions carried out by food and drug supervision and administration departments may be single or multi shots depending on the seriousness of the default. Possible actions are in four areas. First, defaulters blacklisted as targeted surveillance will be subject to more frequent inspection and a higher-risk rating in terms of enterprise risk management; comprehensive and in-depth assessment of enterprise purchase inspection, examination of relevant permits and certificates, factory inspection and enterprise self-examination at least every six months. Second, food and drug production and operation will be subject to restrictions within a certain period. Third, defaulters will be ordered to regularly carry out self-examination on food and drug safety or to invite third parties to carry out inspection and assessment. Fourth, severe and heavy penalty will be imposed on serious defaulters contravening relevant laws and regulations.

Inter-departmental joint sanctions may affect various aspects including: applying for government funding support, corporate bonds issue, food and sugar import tariff quotas and participation in government procurement; acquiring government-supplied land, applying for credit financing or credit card, stock issuance approval, customs clearance, border port health permit, taxation matters, new technology support projects and new website operation.  Relevant authorities may take a stand on defaulters including strict examination, not supportive, setting restrictions, disqualified from priority and quality assessments and listed as targeted surveillance. The memorandum also stipulates strengthening regulation of publishers of illegal advertisements according to law.

Joint sanctions can be carried out in various manners including, first, CFDA releases and updates the list of serious defaulters to various government bodies concerned regularly via the national and local credit information sharing platforms. Meanwhile, the relevant list will be publicised in CFDA portal, enterprise credit information disclosure system and Credit China (creditchina.gov.cn). Government bodies concerned will impose penalty on defaulters upon receiving the list in accordance with the memorandum. Second, a reciprocal notification mechanism in assessing the effectiveness of sanctions will be established.  Details of sanctions will be uploaded regularly by relevant bodies to the joint sanctions sub-systems of the national credit information sharing platform. Third, for matters involving local authorities, relevant information on serious defaulters will be uploaded by the local food and drug regulatory authorities for disseminated to other departments, which will take action in accordance with the memorandum.

Content provided by Picture: HKTDC Research
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