The State Food and Drug Administration (SFDA) has specified the geographical distribution of designated wholesalers of narcotic drugs and Category I psychotropic drugs in accordance with Article 22 of Regulations for the Control of Narcotic Drugs and Psychotropic Drugs, considering the total demand for narcotic drugs and psychotropic drugs, population, economic development and other factors and on the principle of "ensuring supplies, strengthening safety management, introducing competition and guaranteeing a smooth transition for the supply system".

SFDA and provincial-level food and drug regulatory departments, under their work scope, will re-register designated distributors of narcotic drugs and Category I psychotropic drugs before June 30, 2006 in accordance with the procedures specified in Requirements for the Distribution of Narcotic Drugs and Psychotropic Drugs (Interim) (GuoShiYaoJianAn [2005] No. 527).