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Viewing cable 05TAIPEI4936, MEDICAL DEVICE REGISTRATION DEADLINE LEAVES 25%

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Reference ID Created Released Classification Origin
05TAIPEI4936 2005-12-21 22:47 2011-08-23 00:00 UNCLASSIFIED American Institute Taiwan, Taipei
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 TAIPEI 004936 
 
SIPDIS 
 
STATE FOR EAP/RSP/TC AND EB/TPP/BTA, STATE PASS AIT/W AND 
USTR, USTR FOR WINELAND, WINTERS, AND STRATFORD, USDOC FOR 
4431/ITA/MAC/AP/OPB/TAIWAN/MBMORGAN AND JDUTTON 
 
E.O. 12958: N/A 
TAGS: ETRD ECON TW ESTH
SUBJECT: MEDICAL DEVICE REGISTRATION DEADLINE LEAVES 25% 
UNDONE 
 
REF: A. TAIPEI 4396 
     B. TAIPEI 2731 
     C. TAIPEI 2626 
 
1.  Summary: The December 20 deadline for medical device 
registration passed with only about 75% of medical devices 
currently in use in Taiwan receiving licenses.  Those that 
have not yet received licenses are primarily in-vitro 
diagnostic devices.  In most cases, the Department of Health 
(DOH) has not rejected the application, but is requesting 
additional documentation prior to issuing licenses. 
Manufacturers have four months to comply.  Hospitals can 
continue to use products in stock, but companies are 
prohibited from importing or selling any device without a 
license.  DOH has promised to issue emergency import licenses 
to non-substitutable products if the need arises.  End 
Summary. 
 
========================= 
Mixed Message at Deadline 
========================= 
 
2.  December 20 was the DOH imposed deadline for all medical 
devices to be registered and licensed before being legally 
imported or sold in Taiwan.  This requirement, first 
announced in 2004, had already been postponed once when it 
became clear that DOH lacked the manpower and technical 
expertise to process the resulting thousands of applications. 
 DOH proudly announced December 9 that it had processed 100% 
of applications in most categories and was confident that 
only a few applications for in-vitro diagnostic (IVD) devices 
would remain unprocessed by the deadline. 
 
3.  This promising news was tempered by reports from American 
medical device firms that large numbers of products in some 
categories have been processed but have not yet received 
licenses.  As predicted (reftel A), these are mostly IVD 
devices.  American companies estimate that more than 1000 
devices are still awaiting DOH approval.  DOH has requested 
additional documentation for many of these pending 
applications.  In some cases, companies may have 
inadvertently misclassified devices, leading to additional 
delays.  In other cases, reviewers have determined that kits 
containing several products designed to be used together need 
several licenses, again causing delays as companies struggle 
to provide additional information or submit new registration 
applications. 
 
4.  DOH says the delays are the fault of the companies that 
did not submit complete applications or request needed 
clarifications before submitting product applications. 
Companies counter that the registration requirements are 
sometimes unclear.  DOH's use of poorly trained contractors 
to process applications has resulted in an inconsistent 
application of rules and sometimes strange requests for 
additional documentation.  Many companies tell AIT, in 
addition to preparing their own registration applications; 
they have had to informally train DOH contractors as well. 
 
========================================== 
DOH to Approve Emergency Imports if Needed 
========================================== 
 
5.  DOH Bureau of Pharmaceutical Affairs Deputy Director 
General Liu Li-ling told AIT December 20 that over 75% of the 
registration applications received by June 20 had already 
been approved.  The remaining 25% have four months to submit 
additional documents or requested information.  These will be 
approved as soon as the additional information is received, 
she said.  If companies are not able to provide the requested 
information within four months, the application will have to 
be resubmitted. 
 
6.  DDG Liu added that hospitals could continue to use 
products that were already in stock, even if licenses had not 
yet been approved.  However, companies are prohibited from 
importing or selling unlicensed products.  This has 
reportedly led to hospital stockpiling of some products that 
have a long shelf-life.  For those unlicensed products that 
do not have acceptable substitutes, hospitals can apply to 
DOH for an emergency temporary import license.  DOH will 
approve such emergency import applications almost 
immediately, said Liu. 
 
======================================= 
Comment: A Band-aid for Medical Devices 
======================================= 
 
7.  In spite of complaints, DOH has done yeoman's work to 
process as many applications as they have over the past six 
months.  They have approved over 8000 applications since the 
original June deadline.  But the problem now faced by those 
medical device manufacturers still waiting for licenses 
should not surprise anyone.  The medical device registration 
process has been marked by inconsistent decision-making, poor 
communication, and unmet expectations.  That products already 
commonly used in Taiwan should face potential exclusion from 
Taiwan's market because of DOH's bureaucratic inefficiencies 
is a sad but telling commentary on the future of Taiwan's 
health care system.  DOH's paternalistic and 
non-communicative culture make it difficult to implement new 
programs or promote meaningful reforms. 
 
8.  We expect DOH will use the emergency licensing process to 
avoid any serious wide-scale shortages of needed medical 
devices.  That would be consistent with DOH's previous 
practice of cobbling together ad hoc solutions at the last 
minute -- DOH is adept at putting band-aids on more serious 
wounds. 
PAAL