Departments of Finance of Several Provinces: Strict Import Restriction! Public Hospitals Required to Purchase Domestic Products Except for Some Special Medical Devices! (Lists Attached)

  • 2019-04-24
A few days ago, Shandong Provincial Department of Finance issued Shandong Provincial Governmental Procurement Catalogue of Imported Products for 2019, in which there is a list of 488 types of imported medical devices allowed for provincial government purchase. As specified, the government shall purchase domestic goods, engineering works and services. If it is necessary to purchase imported products, they shall be examined and verified in accordance with rules and regulations and be approved by Ministry of Finance before the purchase. This means that public hospitals must purchase domestic products in governmental procurement except for the 488 types of medical device products included in the List of Imported Products!

Compared with Shandong Province, Shanxi Provincial Government allows the procurement of relatively much less imported products! Shanxi Provincial Governmental Procurement List of Imported Products (“List of Imported Products”) was issued on the Shanxi Provincial governmental procurement website. Totally 67 types of medical device products are included in the list of permitted purchase of imports. Shanxi Provincial Department of Finance issued Centralized Procurement Catalogue and Procurement Quotas of Shanxi Province for 2018-2019, which specifies: Governmental procurement shall involve the purchase of domestic goods, engineering works and services. If it is necessary to purchase imported products, they shall be reviewed and verified in accordance with rules and regulations and be approved by Ministry of Finance before the purchase. This means that public hospitals must purchase domestic products in governmental procurement except for the 67 types of medical device products included in the List of Imported Products!

In 2007, Ministry of Finance issued a notice on Methods for Management of Governmental Procurement of Imported Products, which mainly aimed to promote and facilitate the implementation of independent innovation policies for government procurement and standardize the government procurement of imported products. The notice also pointed out: Government shall purchase domestic products; if it is necessary to purchase imported products, review management shall be carried out! The appeal to support domestic products was around China in 2018. The medical device industry long monopolized by imported brands also became a key field that governments developed domestic products. Provinces have increased restrictions on procurement of imported medical products. This means that if domestic products can meet the same requirements as imported ones, they will be resolutely given priority to the procurement!

Lately, Zhejiang Provincial Department of Finance also issued Notification on Unified Verification List of Provincial Governmental Procurement of Imported Products for 2018-2019 (Medical Devices). Besides, Unified Verification List of Zhejiang Provincial Governmental Procurement of Imported Products for 2018-2019 (Medical Devices) was also issued. Besides 232 types of medical devices are allowed to be imported after verification, other medical devices can only be purchased domestically. If it is necessary to purchase imported products, an application must be submitted for strict review and further verification. The Notification explicitly points out that in principle, minimum bid evaluation and performance price ratio method shall be adopted in governmental procurement and potential domestic similar products shall not be limited to participating in the bidding based on Notification on Further Strengthening Management of Governmental Procurement of Imported Products by Zhejiang Provincial Department of Finance.

At the end of last year, Fujian Provincial Department of Finance issued a notice on Fujian Provincial Governmental Procurement List of Imported Products for 2018-2019. In order to further standardize the governmental procurement of imported products, simplify review procedures and improve procurement efficiency, the Office re-collected imported products from provincial units and formulated a new Provincial Governmental Procurement List of Imported Products (Exposure Draft) (hereinafter referred to as "The List") after experts' unification and verification on the basis of the old List of Imported Products (MCG [2014] No. 21). Once the List was formally implemented, the procurement of imported products in the List needs no more verification by experts. This means that the provincial government can purchase imported products included in the 221 types of medical devices in the List and other products to be purchased must be made in China.

In December last year, Notification on Issuing of Provincial Governmental Procurement List of Imported Products for 2018-2019 by Sichuan Provincial Department of Finance was issued on the Sichuan Provincial government procurement website. The List issued in the Notification explicitly pointed out that it was allowed to purchase 98 types of imported medical devices last year, but only 44 types this year. The type of imported products was clearly restricted. There are 15 types of medical devices included in the list of permitted procurement of imported medical devices. If these medical devices are used for "clinic", domestic products shall be used. Grade-III class-A hospitals are allowed to purchase such imported products for major complex operations and scientific research.

According to the China Labor and Social Security News at the country level, relevant leaders of National Health Commission said that we would strictly implement the governmental procurement law and ensure that financial funds would be first used for the procurement of domestic medical devices in communicating online problems of medical devices with netizens. It was introduced that the National Health Commission would also formulate and improve the device standards for medical and health organizations and guide medical and health organizations to reasonably configure appropriate medical devices according to the functional orientation in addition to focusing on procurement in order to promote the development and application of medical devices.

For the whole country, domestic high-end equipment supplies are gradually introduced to the hospital!

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