The General Office of the China Food and Drug Administration ("CFDA") has recently promulgated the Opinions on Further Improving the Food and Drug Traceability System (Draft for Comment) (the "Draft for Comment") for public comments by May 23, 2016.
The Draft for Comment puts forward that enterprises are the main bodies responsible for establishing the food and drug traceability system which is designed to timely recall products in case of any product quality problem to prevent and control risks. The Draft for Comment also stipulates that food and drug producers shall adopt appropriate ways to record or mark the sources of their raw materials and auxiliary materials and the sale destinations of their products, accurately grasp the quality of such materials and such sale destinations and maintain the relevant recorded information and bills and vouchers. In addition, the Draft for Comment specifies that a food and drug producer or operator shall bear the first liability once it receives the claim of a customer for compensation and then purse recovery from the relevant liable party (ies) via the traceability system.