Fast! Obtain your Class B OTC business license in just one day!

Release date:

2020-12-23

A few days ago, the Market Supervision Bureau of Shaoxing City, Zhejiang Province, issued the "Notice on Implementing the Notification and Commitment System for the Approval of Retail Enterprises Specializing in Class B Over-the-Counter Drugs" (hereinafter referred to as the "Notice"). The "Notice" takes effect from January 1, 2021. The "Notice" states that, in accordance with relevant national policy requirements, and aiming to further deepen the "delegation, regulation, and service" reforms and the "at most one visit" initiative in the pharmaceutical distribution sector, it has been decided—after careful consideration—to implement a notification and commitment system for the approval process of retail enterprises applying to establish specialized stores selling only Class B over-the-counter drugs.

A few days ago, the Market Supervision Bureau of Shaoxing City, Zhejiang Province, issued the "Notice on Implementing the Notification and Commitment System for Licensing Retail Enterprises Specializing in Class B Over-the-Counter Drugs" (hereinafter referred to as the "Notice"). The "Notice" takes effect from January 1, 2021.

The "Notice" states that, in accordance with relevant national document requirements, and to further deepen the "delegation, regulation, and service" reforms as well as the "at most one visit" initiative in the pharmaceutical distribution sector, it has been decided—after careful consideration—to implement an informed commitment system for the approval process of retail enterprises applying to exclusively operate Class B over-the-counter drugs (specifically referring to retail businesses that focus solely on selling Class B OTC medications).

The Notice clearly states that the approval process for retail businesses applying to exclusively sell Class B over-the-counter drugs will be streamlined. By implementing a "notification and commitment" system, the approval authority will provide applicants with a one-time notification of all required conditions and application materials. Applicants will then submit their materials along with a commitment letter as requested. In response, the approval department will revamp its procedures, reducing the original process—from "application submission—material review—on-site inspection—system-based approval—license issuance"—to a more efficient sequence of "application submission (with written notification and commitment)—review → license issuance." Importantly, the on-site inspection step will be eliminated entirely, and the entire approval timeline will be compressed to same-day completion.

Simply put, businesses that exclusively handle Class B over-the-counter drugs can apply on-site, and eligible companies can receive their pharmaceutical business licenses on the same day.

This is not the first such case in China. Relevant policies have already been implemented in places like Gansu, Shandong, Sichuan, Jiangxi, Beijing, and Zhejiang.

It is reported that previously, it took at least 20-plus days for enterprises to obtain Class B over-the-counter drug operation qualifications. Now, however, the new licenses are issued on the spot, significantly cutting down the review time while also boosting the economic growth of the pharmaceutical industry.

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