Food for Special Medical Purpose (referred to as "FSMP") is a category of specially processed and formulated food designed to meet the nutritional and dietary needs of individuals with eating restrictions, digestive and absorption disorders, metabolic disturbances, or specific disease conditions. China has a large population with special nutritional requirements, including pregnant women and the elderly under normal physiological conditions, as well as patients with diabetes, kidney disease, cancer, and those recovering from surgery.

According to media reports, China has 230 million hospital admissions annually, with 30%-40% of patients suffering from malnutrition or nutritional risks. Providing them with appropriate nutrition could significantly improve treatment outcomes.

Research shows that FSMP has been used internationally for decades, with early adoption in Europe and the United States, where products are mature and diverse. FSMP plays a crucial role in patient treatment and recovery, effectively shortening treatment cycles, accelerating rehabilitation, reducing medical costs, and alleviating financial burdens on patients. As a result, FSMP is widely used in many countries.

In recent years, with continuous improvements in regulatory policies and gradual market recognition, China's FSMP imports have grown steadily. In 2023, the import volume of FSMP increased by approximately 20% compared to 2021, while the import value rose by about 50%.

Using tariff adjustments to address public health concerns is one of the key objectives of China's tariff policy. Through the efforts of customs and other departments, the 2024 Tariff Adjustment Plan has expanded the scope of tariff reductions for FSMP. This adjustment extends the zero-tariff preference, previously applied only to infant FSMP for ages 0-36 months, to FSMP for individuals aged 3 and above, including pregnant women and the elderly. The tariff reduction ranges from 5% to 12%.

The tariff reduction will help further alleviate the financial burden of nutritional intake for special populations, promote the development of the FSMP industry, and support the "Healthy China" initiative. Li Liangqiu, Executive Vice President of the China Health Food Association, stated that the tariff reduction on FSMP will help increase the supply of imported products, meet the demand of special populations in China, and positively contribute to the high-quality development of the specialty food industry.

"With the 2024 import tariff adjustments, the industry's long-awaited FSMP tariff reduction policy has finally been implemented," said Li Jian, Vice Chairman of Danone China and Senior Vice President of Medical Nutrition for Greater China. "This adjustment significantly lowers the import tariff rates for relevant FSMP products. This people-benefiting policy will undoubtedly ease the financial pressure on patients."