On November 10, 2025, the Office of China’s Narcotics Control Commission released the Notice on Preventing the Diversion of Substances, Non-Scheduled Chemicals, and Equipment Used in Drug Manufacturing, aimed at strengthening the lawful control of materials and equipment that could be used for drug production.
The Notice contains thirteen key provisions, referencing major laws and regulations such as the Criminal Law, the Narcotics Control Law, the Customs Law, and the Regulation on the Administration of Precursor Chemicals. It outlines requirements related to offenses involving drug-making substances, aiding drug production, tax evasion, smuggling, the release of online information, anti-money laundering obligations, and foreign exchange management. It also sets compliance requirements for postal, courier, logistics, and international freight forwarding companies, as well as other relevant entities and individuals.
Overall, the Notice seeks to remind businesses and individuals to comply with national regulations, ensure standardized management of the production, sales, transportation, import, and export of scheduled and non-scheduled chemicals and equipment, prevent their diversion into illegal channels, reduce overseas legal risks, and protect the legitimate rights of citizens and national security.
Key Provisions
· Strict prohibition of the illegal production, sale, or transport of acetic anhydride, ether, chloroform, and other materials or reagents used in drug manufacturing, including carrying such items into or out of China. Assisting drug production through these activities is also forbidden.
· Knowingly producing, selling, transporting, importing, or exporting non-scheduled chemicals or equipment for drug-making purposes for others will be considered complicity in drug manufacturing crimes.
· Enterprises producing or selling such non-scheduled chemicals or equipment must fulfil tax obligations. Tax evasion will result in recovery of unpaid taxes and potential criminal liability.
· Activities such as evading customs supervision, avoiding taxes, bypassing import/export restrictions, or transporting/mailing prohibited or restricted goods constitute smuggling. Customs may confiscate goods and illegal gains, impose fines, and pursue criminal charges if applicable. False declarations to customs may also incur penalties.
· Online platforms must enhance information management and immediately remove prohibited content, stop its transmission, and report it to authorities.
· Enterprises and individuals must comply with anti-money laundering and foreign exchange rules. Violations may lead to administrative or criminal penalties.
· Units handling these chemicals or equipment are encouraged to maintain transaction records and license copies. Any suspected criminal activity among downstream buyers must be reported to local authorities.
· Any unit posting sales information for non-pharmaceutical precursor chemicals online must have the required qualifications (e.g., business license, production/sales permit). Individuals are not allowed to publish such sales information online.
· When exporting non-scheduled chemicals or dual-use equipment, companies must pay close attention to international conventions and the laws of importing countries, especially high-risk destinations such as the United States, Canada, and Mexico. Overseas buyers must complete legal import procedures.
· Knowingly selling, transporting, or exporting such chemicals or equipment to countries where they are controlled may result in foreign criminal liability or sanctions.
· Postal, courier, and logistics enterprises must report any discovery of illegal mailing or transport of precursor chemicals or other drug-manufacturing materials and cooperate with investigations.
· International freight forwarders must make truthful customs declarations. Those facilitating the smuggling of such chemicals or equipment will be held legally responsible.
· If enterprises or individuals encounter unlawful foreign law enforcement actions, they may use legal means to protect their rights and seek assistance from Chinese embassies or consulates.
