Rules for imported baby formula tightened in China

Rules for imported baby formula tightened in China

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In recent times, China has faced plenty of controversies regarding baby formula milk. The Ministry of Commerce in China has on October 15, 2013 informed baby formula importers that they need to record their sales data accurately. The latest instruction has been given in order to avoid monopoly in the industry.

imported milk

Baby formula industry in the country has been affected significantly due to numerous quality and price-manipulation scandals which occurred recently. The ministry also promised that it will offer more convenient procedures for approval for qualified importers, however, they are also required to set reasonable prices of their products and eliminate price manipulation, as well as other moves which resulted in unfair competition.

The Chinese authorities in August 2013 fined six baby formula companies which are operating in the mainland, including Mead Johnson, Biostime, Dumex, Abbott, Friesland and Fonterra. The companies in question were all fined a total of 670 million yuan after an anti-trust investigation. The National Development and Reform Commission stated that formula producers were setting minimum resale prices for distributors and those who sold their products at lower prices were punished for it.

The statement from the ministry added that domestic distributors are expected to follow industry standards and offer high-quality products.

Photo Credits; ECNS

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