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REGULATIONS ON THE PROTECTION OF TYPES OF TRADITIONAL CHINESE MEDICINE

Category  PUBLIC HEALTH AND MEDICINE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-10-14 Effective Date  1993-01-01  

Regulations on the Protection of Types of Traditional Chinese  Medicine



Chapter I  General Provisions
Chapter II  Classification and Approval for the Protection of Types of
Chapter III  Protection of Protected Types of Traditional Chinese Medicine
Chapter IV  Penalties
Chapter V  Supplementary Provisions

(Promulgated by Decree No.106 of the State Council of the People's

Republic of China on October 14, 1992, and effective as of January 1, 1993)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purposes of improving
the quality of types of traditional Chinese medicine, protecting the
legitimate rights and interests of traditional Chinese medicine producing
enterprises, and promoting the development of traditional Chinese medicine.

    Article 2  These Regulations apply to types of traditional Chinese
medicine produced and manufactured within the territory of China, including
prepared traditional Chinese medicines, extracts and preparations from natural
medicinal materials, as well as artificial traditional Chinese medicines.

    Those types of traditional Chinese medicine for which patents are applied
for shall be dealt with under the provisions of the Patent Law, and not under
these Regulations.

    Article 3  The State encourages research and development of types of
traditional Chinese medicine with clinical effects, and practises a
classification protection system for types of traditional Chinese medicine
with reliable quality and certain curative effects.

    Article 4  The administrative department of public health under the State
Council shall be responsible for the supervision and control of the protection
of types of traditional Chinese medicine throughout the country. The State
competent authority for the production and trading of traditional Chinese
medicine shall assist the administrative department with the control of the
protection of types of traditional Chinese medicine throughout the country.
Chapter II  Classification and Approval for the Protection of Types of
Traditional Chinese Medicine

    Article 5  Types of traditional Chinese medicine under the protection of
these Regulations must be those listed in the national pharmaceutical
standards. Upon the determination of the administrative department of public
health under the State Council, protection of types of traditional Chinese
medicine listed in the pharmaceutical standards of provinces, autonomous
regions and municipalities directly under the Central Government may be
applied for.

    The protection of types of traditional Chinese medicine shall consist of
first class protection and second class protection.

    Article 6  For types of traditional Chinese medicine which conform to any
of the following conditions, first class protection may be applied for.

    (1) having special curative effects for a certain disease;

    (2) artificial medicines prepared from varieties of wild medicinal
materials analogously under first class protection; or

    (3) used for the prevention and cure of special diseases.

    Article 7  For types of traditional Chinese medicine which conform to any
of the following conditions, second class protection may be applied for.

    (1) conforming to the provisions of Article 6 in these Regulations, or
having once been listed under first class protection but now being cancelled;

    (2) having outstanding curative effects for a certain disease; or

    (3) effective substances and special preparations extracted from natural
medicinal materials.

    Article 8  New medicines approved by the administrative department of
public health under the State Council shall be protected within a period of
protection as described by the administrative department. For those of them
which conform to the provisions of Article 6 or 7 in these Regulations, an
application for the renewal of the protection may, six months before the
expiration date of protection approved by the administrative department of
public health under the State Council, be offered according to the provisions
of these Regulations.

    Article 9  Procedures for handling applications for the protection of
types of traditional Chinese medicine are as follows:

    (1) Any traditional Chinese medicine producing enterprise may, if it
thinks that the type of traditional Chinese medicine it produces conforms to
the provisions of Article 5, 6, 7 or 8 in these Regulations, apply for
protection with the local competent authority for the production and trading
of traditional Chinese medicine in the province, autonomous region or
municipality directly under the Central Government. The local competent
authority for the production and trading of traditional Chinese medicine shall
write down its comments on the application, then transmit it to the
administrative department of public health at the same level, which shall make
a preliminary examination and write down its comments and submit the
application, with comments, to the administrative department of public health
under the State Council. Under special circumstances, a traditional Chinese
medicine producing enterprise may directly apply to the State competent
authority for the production and trading of traditional Chinese medicine which
shall write down comments on the application and transmit it to the
administrative department of public health under the State Council, or may
directly apply to the administrative department of public health under the
State Council.

    (2) The State examination and evaluation committee for the protection of
types of traditional Chinese medicine shall, under the authorization of the
administrative department of public health under the State Council, be
responsible for the examination and evaluation of the types of traditional
Chinese medicine for which the protection is applied for. The committee shall
provide an examination and evaluation conclusion within six months as of the
date of receiving an application.

    (3) Based on the conclusion of the State examination and evaluation
committee for the protection of types of traditional Chinese medicine, the
administrative department of public health under the State Council shall, in
consultation with the State competent authority for the production and trading
of traditional Chinese medicine, decide whether or not to grant the protection
thereto. For the types of traditional Chinese medicine of which the protection
has been approved, the administrative department of public health under the
State Council shall issue a Certificate of Protection of Types of Traditional
Chinese Medicine.

    The administrative department of public health under the State Council
shall be responsible for the formation of the State examination and evaluation
committee for the protection of types of traditional Chinese medicine, members
of which shall, in consultation with the State competent authority for the
production and trading of traditional Chinese medicine, be appointed from
experts in the field of medical service, scientific research, inspection, as
well as trading and management of traditional Chinese medicine.

    Article 10  Any enterprise applying for protection of types of traditional
Chinese medicine shall provide the State examination and evaluation committee
for the protection of types of traditional Chinese medicine with complete sets
of materials as required by the administrative department of public health
under the State Council.

    Article 11  The administrative department of public health under the State
Council shall make announcements in the designated professional newspapers and
periodicals regarding the types of traditional Chinese medicine to which
protection has been granted or those for which the period of protection has
expired.
Chapter III  Protection of Protected Types of Traditional Chinese Medicine

    Article 12  The period of protection for types of traditional Chinese
medicine is as follows:

    The period of first class protection is thirty years, twenty years and ten
years respectively.

    The period of second class protection is seven years.

    Article 13  Within the period of protection, the prescriptions and
pharmaceutical techniques of types of traditional Chinese medicine under first
class protection shall be kept secret and shall not be published by the
producing enterprises having been granted the Certificate of Protection of
Types of Traditional Chinese Medicine, the competent authorities for the
production and trading of traditional Chinese medicine, the administrative
departments of public health, and other units or individuals concerned.

    Departments, enterprises and units concerned which have the duty to keep
secrets shall set up necessary security systems as required by the State.

    Article 14  Transfer to any foreign country of prescriptions and
pharmaceutical techniques of types of traditional Chinese medicine under first
class protection shall be dealt with according to the relevant State
provisions of security.

    Article 15  Where, due to special circumstances, it is necessary to extend
the period of protection of a type of traditional Chinese medicine under first
class protection, the producing enterprise shall, six months before the
expiration date of protection, submit an application for extension according
to the procedures described in the Article 9 of these Regulations. The
extended period of protection shall be decided by the State examination and
evaluation for the protection of types of traditional Chinese medicine,
however, an extension approved each time shall not exceed the period of
protection granted for the first time.

    Article 16  The period of protection of types of traditional Chinese
medicine under second protection may be extended for seven years upon
expiration.

    If it is necessary to extend the period of protection of a type of
traditional Chinese medicine under second class protection, the producing
enterprise shall, six months before the expiration date of protection, submit
an application for extension according to the procedures described in the
Article 9 of these Regulations.

    Article 17  The production of protected types of traditional Chinese
medicine within the period of protection shall be restricted to enterprises
which have been granted the Certificate of Protection of Types of Traditional
Chinese Medicine, unless otherwise provided for in Article 19 of these
Regulations.

    Article 18  Where more than one enterprises produce a type of traditional
Chinese medicine under protection before the protection is granted by the
administrative department of public health under the State Council, those
enterprises who have not applied for the Certificate of Protection of Types of
Traditional Chinese Medicine shall, within six months as of the date of
announcement, report the case to the administrative department of public
health under the State Council and provide relevant materials according to the
provisions of Article 10 of these Regulations. The administrative department
of public health under the State Council shall designate a pharmaceutical
inspection institution to inspect the quality of the reported type of medicine
as has been done with the type under protection. Based on the inspection, the
administrative department of public health under the State Council may take
the following measures:

    (1) If it is up to the national pharmaceutical standards, the Certificate
of Protection of Types of Traditional Chinese Medicine shall be issued through
consultation with the State competent authority for the production and trading
of traditional Chinese medicine.

    (2) If it is below the national pharmaceutical standards, the registered
document of approval of this type of traditional Chinese medicine shall be
revoked according to the laws and regulations governing pharmaceutical
administration.

    Article 19  For protected types of traditional Chinese medicine in short
supply for clinical needs, the administrative departments of public health in
provinces, autonomous regions and municipalities directly under the Central
Government shall, as proposed by the State competent authority for the
production and trading of traditional Chinese medicine, and with the approval
of the administrative department of public health under the State Council,
issue registered documents of approval to the enterprises which produce in
their localities the same types of traditional Chinese medicine as the
protected types for imitation. The imitation enterprises shall pay reasonable
use fees to the enterprises who hold the Certificate of Protection of Types of
Traditional Chinese Medicine and transfer the prescriptions and pharmaceutical
techniques of the protected types. The amounts of the use fees shall be
decided by the two sides through consultation. If the two sides fail to reach
an agreement, the administrative department of public health under the State
Council shall make a ruling.

    Article 20  Enterprises producing protected types of traditional Chinese
medicine and the competent authorities for the production and trading of
traditional Chinese medicine shall improve conditions of production and the
qualities of the protected types as required by the administrative departments
of public health in provinces, autonomous regions and municipalities directly
under the Central Government.

    Article 21  Registration of protected types of traditional Chinese
medicine within the period of protection in any foreign country shall be
subject to the approval of the administrative department of public health
under the State Council.
Chapter IV  Penalties

    Article 22  If anyone divulges secrets in violation of the provisions of
Article 13 of these Regulations, the unit to which he belongs or the higher
authority shall impose upon him disciplinary sanctions. If a crime has been
constituted, criminal liability shall be investigated according to laws.

    Article 23  If anyone, in violation of the provisions of Article 17 of
these Regulations, imitates a protected type of traditional Chinese medicine
without approval, the administrative departments of public health at or above
the county level shall punish him as a producer of fake medicines.

    If anyone fabricates the Certificate of Protection of Types of Traditional
Chinese Medicine and relevant certification documents to produce and sell
medicines, the administrative departments of public health at or above the
county level shall confiscate all medicines involved and illegal gains, and
may concurrently fine him not more than three times the prices of the standard
equivalents of medicines involved.

    If the aforesaid acts have constituted crimes, the judicial organs shall
investigate for criminal liabilities.

    Article 24  A party who refuses to accept the decision of punishment made
by the administrative departments of public health may apply for
administrative reconsideration or institute administrative proceedings
according to the relevant provisions of laws and administrative regulations.
Chapter V  Supplementary Provisions

    Article 25  Requirements and application forms for the protection of types
of traditional Chinese medicine shall be decided by the administrative
department of public health under the State Council.

    Article 26  The administrative department of public health under the State
Council shall be responsible for the interpretation of these Regulations.

    Article 27  These Regulations shall come into effect on January 1, 1993.



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