In order to strengthen the administration of the pharmaceutical
industry, to regulate the purchase of drugs, medical devices and
medical disposables, to prohibit illegal transactions and to fight
against commercial bribery, on December 25 the National Health and
Family Planning Commission (the "NHFPC")
published the amended "Provisions on the Establishment of
Commercial Bribery Blacklist in the Pharmaceutical Purchase and
Sales Industries" issued by the former Ministry of Health on
January 19, 2007. The New Provisions will come into effect on March
The New Provisions will affect pharmaceutical production
and sales enterprises on following aspects:
To further affect the public image of the enterprises
through publishing the blacklists on the central administrative
body's websites. The New Provisions require the NHFPC
to republish the regional blacklists on its website,so that such
blacklists are more public.
To sign an Integrity Purchase and Sales Agreement along
with the Purchase Contract. The New Provisions require
that Medical institutions must sign purchase contracts along with
an integrity purchase and sales agreement that list the name of the
appointed representative of the enterprise and that include terms
stating the enterprises will be blacklisted in the event of
To restrict medical institutions from taking bids or
procuring the listed enterprises' products. The number
of times being listed on the blacklist affects the enterprises'
business relationship with the public medical institutions, which
could be viewed on the table below:
The blacklists will include those found guilty of relatively
minor bribery but who may not have been punished by China's
courts or prosecuted by the procuratorates, as well as those who
have received administrative punishments from sector and financial
watchdogs or investigations from discipline inspection organs.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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