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The Changsha Customs in Central China's Hunan Province has sanctioned to set up a bonded warehouse for imported medical and health products, the first in China, as part of an effort to cut drug prices.

 

The Quanzhou Medical and Food Products Logistics Company will take charge of construction of the warehouse, the company source said, adding it need an investment of 480 million yuan (US$60 million).

 

Upon completion, the warehouse will be able to accommodate 600,000 TEUs. Its daily handling capacity is designed at 60,000 TEUs, the company said.

 

The bonded warehouse is expected to become the largest distribution center for imported medical products in Central China, which will help reduce the inland province's dependence on imported drugs discharged from the coastal ports.

 

High medical costs, especially for imported drugs are complained most by common Chinese citizens, which are partly due to logistic and tariff expenses.

 

The Chinese government has enforced medicinal price cuts covering 1,500 items of medicines in the past eight years. However, the majority of people still complain about the high bills for drugs.

 

(Xinhua News Agency March 8, 2006)