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In 2008, the "Catalogue of Prohibited Categories of Processing Trade" was introduced, adding 39 high-pollution and high-risk products under the tens-digit classification. This year, the "Second Catalogue of Prohibited Commodities in Processing Trade for 2007" came into effect, drawing increased attention due to its inclusion of certain endangered species. The Ministry of Commerce and the General Administration of Customs jointly issued Announcement No. 22 of 2008, which officially implemented the 2008 Catalogue on April 5th.
According to the Ministry of Commerce's website, the new catalogue is based on the 2008 national import and export tariff schedule, with technical updates made to the previous version. It also added 39 new entries as recommended by relevant state agencies, focusing on high-pollution and high-risk goods. During an interview, a reporter learned that this update included 39 new prohibited items, some involving pharmaceutical intermediates. However, a one-month grace period and the allowance for existing contracts to be completed were seen as mitigating the impact on the industry.
This year’s implementation of the "2007 Second Catalogue of Prohibited Commodities in Processing Trade" brought significant attention, especially due to its inclusion of traditional Chinese medicines containing endangered animal and plant ingredients. This marked the first time such items were explicitly listed in the prohibition catalog.
The list of prohibited processing trade items has long been controversial. Starting in 2004, products like endangered animal skins were banned from export through processing trade. According to official interpretations, the catalogue prohibits specific products from being imported or exported via processing trade but does not restrict general trade. Thus, companies can still conduct regular imports and exports.
However, the new 2007 catalogue expanded the scope to include Chinese patent medicines, affecting enterprises involved in bear bile and terpenoid products. Despite this, experts suggest the impact is limited, as domestic exports of such medicines are minimal, and these products do not circulate widely in major trading markets.
Yu Mingde, Vice President of the China Pharmaceutical Enterprise Management Association, noted that while there are challenges between traditional Chinese medicine and conservation efforts, it's important to recognize that some endangered species should indeed be protected. He emphasized the need for better public awareness and explanation of cultural differences regarding wildlife protection.
It is known that several popular Chinese medicines, including Pixianzhi, Angong Niuhuang Pills, and Yunnan Baiyao, contain components from endangered animals. These have previously led to seizures by foreign customs authorities. However, Yu pointed out that recent efforts to explain the situation have improved international understanding, particularly regarding artificial breeding of bears used in traditional medicine.
The 2008 Catalogue largely followed the 2007 version, continuing restrictions on plant extracts from endangered species. While some hoped for more refined customs codes, the current system remains unclear, making it difficult for customs to distinguish between wild and cultivated sources.
Liu Zhanglin, director of the Chinese Medicine Department at the Chinese Medicine and Health Products Chamber of Commerce, mentioned that few companies currently engage in processing trade of endangered plant extracts, with most focusing on artificial cultivation. He stressed the need for clearer policies to support sustainable practices.
Zeng Jianguo, from the Hunan Province Traditional Chinese Medicine Extract Engineering Research Center, noted that the lack of refined customs codes indicates caution from authorities. Although the policy remains unchanged, the impact on the industry is considered limited.
Artificial cultivation is seen as a viable solution. For example, ginkgo extract can be processed if accompanied by artificial planting certification. The government is also investing in projects like the Guangxi Traditional Chinese Medicine Modernization Industry Special Project, aiming to establish breeding bases for endangered medicinal plants.
Yu Mingde concluded that while the status of endangered species must be re-evaluated, artificial cultivation offers a way forward. He urged the Chinese medicine industry to pay closer attention to this evolving landscape.