The modern logistics system for traditional Chinese medicinal materials will be initially established by the Ministry of Commerce by 2020

Recently, the General Office of the Ministry of Commerce issued the "Notice on Guiding Opinions on Accelerating the Construction of the Modern Logistics System for Traditional Chinese Medicinal Materials" (Shang Ban Zhi Han [2014] No. 809, hereinafter referred to as the "Notice"). The "Notice" requires local commerce authorities to promote the establishment of a modern logistics system for traditional Chinese medicinal materials, advance the modernization of traditional Chinese medicinal materials circulation, and enhance the quality and safety assurance capacity for traditional Chinese medicinal materials.

The "Notice" specifies the overall goal of initially forming an integrated modern logistics system for traditional Chinese medicinal materials covering harvesting, origin processing, packaging, warehousing and transportation by 2020, and puts forward six main tasks: first, building industrial processing bases for traditional Chinese medicinal materials; second, standardizing the packaging of traditional Chinese medicinal materials; third, building a centralized warehousing and distribution network; fourth, promoting the application of modern logistics management and technology; fifth, improving the supporting logistics service functions of specialized markets for traditional Chinese medicinal materials; sixth, strengthening and expanding warehousing and logistics enterprises for traditional Chinese medicinal materials.

To achieve the above goals and tasks, the "Notice" proposes four safeguard measures: first, strengthening planning guidance and policy support, and striving to provide land, funding and financing support for the construction of intensive origin processing bases and socialized warehousing bases for traditional Chinese medicinal materials; second, forming a standards system covering the entire logistics process of traditional Chinese medicinal materials as soon as possible; third, implementing a warehousing quality certification system for traditional Chinese medicinal materials to ensure that enterprises engaged in public warehousing services for traditional Chinese medicinal materials have the corresponding storage conditions; fourth, giving full play to the positive role of relevant industry associations in the formulation and promotion of standards for traditional Chinese medicinal materials, talent training, and professional consulting.

The following is the original text of the guiding opinions:

Guiding Opinions of the General Office of the Ministry of Commerce on Accelerating the Construction of the Modern Logistics

System for Traditional Chinese Medicinal Materials

(Draft for Comments)

Traditional Chinese medicinal materials are the material foundation for the inheritance and development of traditional Chinese medicine, and the logistics of traditional Chinese medicinal materials is an important part of drug circulation in China. In order to thoroughly implement the "Several Opinions of the State Council on Supporting and Promoting the Development of Traditional Chinese Medicine" (Guo Fa [2009] No. 22) and the "Several Opinions of the General Office of the State Council on Promoting the Healthy Development of Domestic Trade Circulation" (Guo Ban Fa [2014] No. 51), promote the establishment of a modern logistics system for traditional Chinese medicinal materials, advance the modernization of traditional Chinese medicinal materials circulation, and enhance the quality and safety assurance capacity for traditional Chinese medicinal materials, the following opinions are hereby put forward:

I. Significance

The total annual logistics volume of traditional Chinese medicinal materials in China is about 17 million tons, of which bulk traditional Chinese medicinal materials and precious, fine, toxic, narcotic and restricted traditional Chinese medicinal materials account for more than 80%. Since the reform and opening up, China's logistics system for traditional Chinese medicinal materials has made some progress. However, with the development of China's economy and society, the contradiction that the logistics system for traditional Chinese medicinal materials does not adapt to the development of traditional Chinese medicine and the growing health needs of the people has become increasingly prominent, mainly manifested as: origin processing, packaging and warehousing facilities for traditional Chinese medicinal materials are scattered and backward, modern preservation techniques are lacking, the level of intensification, standardization and modernization of traditional Chinese medicinal materials logistics is relatively low, service functions are incomplete, and certain hidden dangers are brought to the quality and safety of traditional Chinese medicinal materials. Promoting the construction of the modern logistics system for traditional Chinese medicinal materials is of great significance for improving the organizational and modernization level of traditional Chinese medicinal materials circulation, enhancing the ability of traditional Chinese medicinal materials circulation to guarantee the quality and safety of traditional Chinese medicinal materials, and promoting the sustainable and healthy development of traditional Chinese medicine.

II. Guiding ideology and main goals

(1) Guiding ideology.

In accordance with the overall requirements of the 18th National Congress of the Communist Party of China, adhering to the direction of serving the people's health, with the purpose of improving the intensification and modernization level of traditional Chinese medicinal materials logistics and the quality and safety assurance capacity for traditional Chinese medicinal materials, and with the basic principles of strengthening government planning and policy guidance, giving play to the decisive role of the market mechanism, and strengthening the application of modern science and technology and new management methods, promote the transformation of traditional Chinese medicinal materials circulation methods and logistics technology, gradually improve the modern logistics system for traditional Chinese medicinal materials, safeguard quality and safety in the circulation process of traditional Chinese medicinal materials, and promote the sustainable development of China's traditional Chinese medicinal materials industry and traditional Chinese medicine.

(2) Main goals.

By 2020, initially form an integrated modern logistics system for traditional Chinese medicinal materials covering harvesting, origin processing, packaging, warehousing and transportation, basically meet the logistics needs of specialized markets and e-commerce transactions for traditional Chinese medicinal materials, and basically adapt to the requirements of the development of traditional Chinese medicine and the growing health needs of the people. The specific goals are: the standards system for traditional Chinese medicinal materials logistics is basically established; the logistics infrastructure and circulation network with major production and sales areas of traditional Chinese medicinal materials as circulation nodes are basically completed, and bulk traditional Chinese medicinal materials and precious, fine, toxic, narcotic and restricted traditional Chinese medicinal materials achieve centralized warehousing; logistics informatization management technology and new preservation technology for traditional Chinese medicinal materials are widely applied; the circulation traceability system fully plays its role; and the comprehensive strength of large and medium-sized traditional Chinese medicinal materials logistics enterprises is significantly enhanced.

III. Main tasks

(1) Build origin processing bases for traditional Chinese medicinal materials. Promote the intensification of origin processing for varieties of traditional Chinese medicinal materials suitable for origin processing, and gradually change the scattered and extensive origin processing methods for traditional Chinese medicinal materials. Encourage market entities such as qualified traditional Chinese medicinal materials trading enterprises, traditional Chinese medicine decoction piece and pharmaceutical enterprises, and third-party logistics enterprises, in accordance with relevant national standards and the characteristics of traditional Chinese medicinal materials, to build intensive and large-scale origin processing bases in major production areas of bulk traditional Chinese medicinal materials, and enhance the quality of traditional Chinese medicinal materials through professional and standardized technologies such as drying treatment of traditional Chinese medicinal materials.

(2) Standardize the packaging of traditional Chinese medicinal materials. Use packaging materials, packaging methods and packaging marks that comply with relevant national standards, and effectively change the situation of no packaging, excessive packaging and no marks for traditional Chinese medicinal materials. Origin processing bases for traditional Chinese medicinal materials should assume the packaging responsibility for traditional Chinese medicinal materials, guide medicinal farmers and specialized cooperatives for traditional Chinese medicinal materials to implement unified and standardized packaging at origin processing bases, and use modern information technology means to record relevant information such as the cultivation of traditional Chinese medicinal materials, trading entities and the quality of traditional Chinese medicinal materials in packaging marks, forming the information source of the circulation traceability system for traditional Chinese medicinal materials.

(3) Build a centralized warehousing and distribution network. In accordance with relevant national norms and standards, build standardized and large-scale warehouses for traditional Chinese medicinal materials, and gradually change the backward situation of scattered storage and storage in residential houses for traditional Chinese medicinal materials. According to the flow and direction of traditional Chinese medicinal materials, the scale of existing warehousing facilities and the status of transportation facilities, and in accordance with the principle of both ensuring supply and reducing circuitous transportation, focus on major production areas of bulk traditional Chinese medicinal materials and specialized markets for traditional Chinese medicinal materials, rationally lay out standardized and socialized warehousing bases for traditional Chinese medicinal materials, and build a nationwide, intensive and efficient warehousing and distribution system for traditional Chinese medicinal materials that is mainly based on centralized warehousing in major production areas and supplemented by transit warehousing in sales areas, combines warehousing in production areas with origin processing and packaging bases, and matches warehousing in sales areas with trading markets.

(4) Promote the application of modern logistics management and technology. Promote the application of machinery and equipment for drying, packaging, handling and loading and unloading of traditional Chinese medicinal materials that comply with relevant national standards, change the current situation of manual carrying and manual operation for traditional Chinese medicinal materials, and improve the mechanization level of traditional Chinese medicinal materials logistics; promote the application of warehouse management systems (WMS) and technologies such as barcodes, QR codes and radio frequency identification to implement electronic management of information on trading entities of traditional Chinese medicinal materials and all aspects and links such as processing and packaging, warehousing acceptance, storage and preservation, and seamlessly connect with the circulation traceability system to improve the informatization level of traditional Chinese medicinal materials logistics; eliminate the phenomenon of aluminum phosphide fumigation, prevent the abuse of sulfur fumigation during origin processing and warehousing of traditional Chinese medicinal materials, and in accordance with the principles of safety, environmental protection and economy, and according to the characteristics of various traditional Chinese medicinal materials, promote the application of advanced and applicable storage and preservation technologies and methods such as controlled atmosphere preservation and low-temperature preservation to ensure the quality and safety of traditional Chinese medicinal materials.

(5) Improve the supporting logistics service functions of specialized markets for traditional Chinese medicinal materials. According to the overall requirements of the national warehousing and distribution system for traditional Chinese medicinal materials and the logistics needs of specialized trading and e-commerce, build supporting large-scale warehouse facilities, improve logistics service functions, and promote the resolution of the lack of supporting warehousing facilities and the scattered and backward situation in specialized markets for traditional Chinese medicinal materials. Specialized markets for traditional Chinese medicinal materials and e-commerce enterprises shall, in accordance with relevant national standards, build warehouses for traditional Chinese medicinal materials on their own or by introducing third-party logistics enterprises, provide public warehousing services for traditional Chinese medicinal materials, and implement unified and standardized acceptance, warehousing and preservation management for traditional Chinese medicinal materials traded in specialized markets and e-commerce. Specialized markets and market supporting warehousing enterprises shall, in accordance with relevant national regulations and requirements, inspect the packaging marks and codes of traditional Chinese medicinal materials traded in the market, and effectively implement the circulation traceability system for traditional Chinese medicinal materials.

(6) Strengthen and expand warehousing and logistics enterprises for traditional Chinese medicinal materials. Encourage warehousing and logistics enterprises for traditional Chinese medicinal materials to base themselves on the logistics needs of traditional Chinese medicinal materials, build large-scale warehouses, provide integrated logistics services such as origin processing and packaging, quality testing, storage and preservation, and transportation and distribution, and gradually change the extensive operation situation of simply renting out warehouses. Encourage traditional Chinese medicinal materials trading enterprises and traditional Chinese medicine decoction piece enterprises to invest in building socialized logistics enterprises for traditional Chinese medicinal materials. Encourage enterprises with modern pharmaceutical logistics capabilities to cooperate with other logistics enterprises to carry out warehousing and logistics business for traditional Chinese medicinal materials. Warehousing and logistics enterprises for traditional Chinese medicinal materials should improve their corporate governance structure and various business management systems, optimize business processes, improve service functions, and provide warehousing supervision services for guaranteed financing of traditional Chinese medicinal materials. Give play to the role of the market mechanism, and encourage the realization of cross-regional, large-scale and intensive operation of traditional Chinese medicinal materials logistics through various mergers and reorganizations such as acquisitions, mergers and equity participation.

IV. Safeguard measures

(1) Strengthen planning guidance and policy support. Local commerce authorities should incorporate the construction of the modern logistics system for traditional Chinese medicinal materials into the drug circulation and commercial circulation work systems for overall planning. Actively work with local departments in charge of the traditional Chinese medicinal materials industry, food and drug supervision, and land and resources to establish a work coordination mechanism. They may, in light of the actual situation of local traditional Chinese medicinal materials industry development, compile a plan for the construction of the local modern logistics system for traditional Chinese medicinal materials. On the basis of fully integrating relevant commercial development promotion funds, strengthen communication and coordination with relevant departments, strive to provide land, funding and financing support for the construction of intensive origin processing bases and socialized warehousing bases for traditional Chinese medicinal materials, and organize and guide the majority of medicinal farmers and market merchants to entrust traditional Chinese medicinal materials trading enterprises and warehousing and logistics enterprises with centralized processing and warehousing of traditional Chinese medicinal materials.

(2) Improve the standards system for traditional Chinese medicinal materials logistics. Organize the promotion and implementation of industry standards such as the "Technical Specifications for Warehouses of Traditional Chinese Medicinal Materials" and the "Management Specifications for Warehousing of Traditional Chinese Medicinal Materials" published by the Ministry of Commerce, mobilize industry organizations and enterprises to participate in the formulation of industry standards such as controlled atmosphere preservation, origin processing, packaging and transportation of traditional Chinese medicinal materials, study and formulate national standards concerning logistics quality management of traditional Chinese medicinal materials, and form a standards system covering the entire logistics process of traditional Chinese medicinal materials as soon as possible.

(3) Implement a warehousing quality certification system for traditional Chinese medicinal materials. Explore the carrying out by relevant industry organizations, in accordance with the requirements of relevant national standards, of warehousing quality certification for traditional Chinese medicinal materials for enterprises engaged in origin processing and warehousing services for traditional Chinese medicinal materials, and properly link the certification results with the national Good Supply Practice (GSP) and Good Manufacturing Practice (GMP) certification work, to ensure that enterprises engaged in public warehousing services for traditional Chinese medicinal materials have the corresponding storage conditions.

(4) Give play to the role of industry associations. Support the establishment of specialized industry organizations for warehousing of traditional Chinese medicinal materials, and give full play to the positive role of relevant industry associations in the formulation and promotion of standards for traditional Chinese medicinal materials, talent training, and professional consulting. Promote industry associations to conduct in-depth research on issues related to the construction of the logistics system for traditional Chinese medicinal materials, strengthen industry self-discipline and business exchanges, actively advocate and promote new logistics models, and promote the healthy development of modern logistics for traditional Chinese medicinal materials.