Page 178 - 2017 White Paper
P. 178
7 White Paper on the Business Environment in China
Legislating Towards Food Safety
Food safety remains an ongoing concern, so in yet
another attempt to legislate its way to food safety, China
released a new five-year plan “to upgrade its food safety
regulations in June 2012. In 2014, the National People’s
Congress (NPC), released a draft of the revised Food
Safety Law (Draft FSL) for public comment. Formerly
called the Food Hygiene Law and re-named Food Safety
Law in 2009, which was also when the government
altered most of its content. The Draft FSL “focuses on
risk assessment and management”. It requires increased
attention to government monitoring of specific risks
(i.e., foodborne illnesses, illegal additives, and other
forms of contamination), assessment of those threats
by a centralized government body, and the subsequent
enactment of standards or adoption of other mitigation
measures that are proportional to the size of the risk.
At the same time, the Draft FSL also requires greater
responsibility on the part of manufacturers and
distributors of food. For example, the draft requires self-
audits by food manufacturers. The Draft FSL imposes
additional requirements on entities in various segments
of the food industry and in different parts of the supply
chain (manufacturing, distribution, retail) to ensure
safety. For example, it requires that infant formula
manufacturers implement special good manufacturing
practices and that they self-audit and report on those
audits to local food and drug authorities. It also prohibits
contract manufacturing by infant formula manufacturers
(Balzano and Topol 2014).
Among the most far reaching requirements are
those related to penalties. The Draft FSL increases
penalties and liabilities significantly. Specifically, the
draft increases administrative fines by agencies for FSL
violations, the potential for civil compensatory and
punitive damages in related litigation, and the potential
for criminal prosecution. Perhaps more ominous is the
pledge to strengthen the “link” between food safety
regulation and criminal penalties. The Draft FSL calls for
“prompt” reporting of suspected food safety crimes by
CFDA and other administrative agencies to the Ministry
of Public Security (China’s police force) for immediate
investigation. China has already cracked down on
violators of food safety standards through the Criminal
Code over the last several years. The draft law increases
the trend toward criminal prosecution in this area
(Balzano and Topol 2014).
178
Legislating Towards Food Safety
Food safety remains an ongoing concern, so in yet
another attempt to legislate its way to food safety, China
released a new five-year plan “to upgrade its food safety
regulations in June 2012. In 2014, the National People’s
Congress (NPC), released a draft of the revised Food
Safety Law (Draft FSL) for public comment. Formerly
called the Food Hygiene Law and re-named Food Safety
Law in 2009, which was also when the government
altered most of its content. The Draft FSL “focuses on
risk assessment and management”. It requires increased
attention to government monitoring of specific risks
(i.e., foodborne illnesses, illegal additives, and other
forms of contamination), assessment of those threats
by a centralized government body, and the subsequent
enactment of standards or adoption of other mitigation
measures that are proportional to the size of the risk.
At the same time, the Draft FSL also requires greater
responsibility on the part of manufacturers and
distributors of food. For example, the draft requires self-
audits by food manufacturers. The Draft FSL imposes
additional requirements on entities in various segments
of the food industry and in different parts of the supply
chain (manufacturing, distribution, retail) to ensure
safety. For example, it requires that infant formula
manufacturers implement special good manufacturing
practices and that they self-audit and report on those
audits to local food and drug authorities. It also prohibits
contract manufacturing by infant formula manufacturers
(Balzano and Topol 2014).
Among the most far reaching requirements are
those related to penalties. The Draft FSL increases
penalties and liabilities significantly. Specifically, the
draft increases administrative fines by agencies for FSL
violations, the potential for civil compensatory and
punitive damages in related litigation, and the potential
for criminal prosecution. Perhaps more ominous is the
pledge to strengthen the “link” between food safety
regulation and criminal penalties. The Draft FSL calls for
“prompt” reporting of suspected food safety crimes by
CFDA and other administrative agencies to the Ministry
of Public Security (China’s police force) for immediate
investigation. China has already cracked down on
violators of food safety standards through the Criminal
Code over the last several years. The draft law increases
the trend toward criminal prosecution in this area
(Balzano and Topol 2014).
178
